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February 26, 2021

Banking and Financial Services industry has always been heavily dependent on the HR function for finding, training and managing the right talent. This is a critical requirement for customer engagement, technology adoption and facing business risks, the key drivers of success. In recent times, given the growing social, economic and security considerations, BFSI as an industry is embracing technology at a rapid pace, including a paradigm shift in the HR function – primarily to address the next-gen talent requirements, create a future ready workplace, and inculcate a culture of self service for the employees, business and HR teams.

Some of the disruptive technology interventions in the BFSI sector like Blockchain, cognitive mobile banking, contextual chatbots, customer profiling and analytics etc. are leading to a change in the core operating model of the industry. In alignment with this industry requirement, the traditional HR operating model is also allowing disruption from some of the key upcoming technologies like Artificial Intelligence (AI), Machine Learning (ML), Cognitive Analytics and Internet of Things (IoT).

Next-gen technology interventions: Influence on BFSI HR function

The changing ecosystem of global workforce, multi-generational talent, mobile and virtual working environment, social media presence and branding etc. are driving the adoption of next-gen technology interventions. There are multi-faceted impacts across HR through these interventions:

  • Faster & better recruiting: This includes Machine Learning powered sourcing to identify relevant hiring channels, profiling candidates through social media, AI enabled assistants for initial screening, virtual onboarding and team connects through mobile apps etc. while maintaining data security and resilience.

  • Driving self-service and operational efficiency: AI enabled knowledge portals to suggest FAQs, mobile apps integrating all key HR modules through IoT, Virtual assistants (VA) for HR queries resolution, AI powered document extraction and translation etc.

  • Improved talent development & management: Deep learning and AI underlying training modules customized for users based on performance and future requirements, recommendations for relevant certifications based on federal requirements, cyber security and constantly changing content and regulatory requirements.

  • Cognitive analytics for critical insights: Predictive and prescriptive analytics providing business insights related to hiring, attrition, and performance etc., and real-time trends for employee satisfaction, CSR etc.

Disruptive technology and the demand for reassessing traditional HR operating model

The new-age HR operating model must be agile, globally adaptable, and collaborative to remain relevant and add value to financial services industry. Next-gen technology interventions are not only acting as key enablers for this purpose, but also serving as disrupters to the traditional way of working. As a result of these interventions, the key components of HR operating model are undergoing changes:

  • HR Strategy: Cognitive analytics supporting real time predictive and prescriptive reporting is enabling the leadership to make faster, reliable decisions. The use of AI/ML in hiring and training will ensure improved talent quality through new-age channels. There is a marked strategy change focusing on agile decision making, 

    technology adoption and social media employer branding.

  • HR Business Partners: The increase in self-service through VAs and knowledge portals is eliminating a majority of administrative tasks, allowing HR partners to focus on change advocacy and business performance contribution.

  • HR Center of Excellence (CoE) – Social & collaborative digital assets with underlying IoT and AI technologies, are ensuring streamlined data integration with support for critical data analysis. Utilizing these, CoEs are now playing the role of strategic consultants cutting across various subject areas to provide holistic value to the business. They are also foraying into external forums for embracing industry wide best practices.

  • HR Operations/Service Center: Service Centers are now focusing on driving organization wide technology adoption by routing users to self-service channels, supporting them with usage, and offering insights etc. The AI enabled document extraction and translation tools have reduced the dependence on regional service centers and pushed for centralization.

  • End user experience: Prioritizing of digital interventions based on the end user requirements is critical. VAs, cognitive knowledge portals, mobile enabled self-service options etc. are empowering employees and breaking the traditional norms of communication.

  • HR has to adapt to the new model to ensure success
  • The reimagined BFSI HR operating model based on human-technology amalgamation is set to be the new normal in the not too distant future. HR as a function has to adapt to this model, and drive change and adoption across the organization. Effective change management, robust communication plan and digital training framework will be the key success criteria to ensure a fully prepared workforce, leading the financial services industry of the future.
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Geetanjali leads Global HRO Delivery & Sales enablement function with the TCS BFSI business unit. She has over 18 years of experience spanning HR operations, pre-sales/ solutions, HR transformation & project management. She is Lean Six Sigma certified, Design Thinking trained and has consulted on multiple projects related to the areas of HR & Payroll strategy, Program design, Administration, Technology and Digital.

Ravi is part of the HRO Pre-Sales and Solutions function with TCS Banking, Financial Services, and Insurance (BFSI) business unit. He has more than 6 years of experience spanning HR solutions, pre-sales, consulting and service delivery, and has worked with several clients in BFSI. Ravi holds a Master's degree in HR Business Administration from the Management Development Institute, Gurgaon, India.

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