TALK WITH EXPERTISE

 

Banking is a vast area to be discussed where Customer Service is its  fundamental starting point which led to the one of most essential service industry in present global context. Plans of actions implement to be more cost efficient, can be seen in different angles by different professionals even in the same industry. Since it is vigilant and contemporary to have a look on their view points on following key areas.

1.Exclusive Interview with,

Mr. Chrishantha Lakshman , a prudent banker with over 30 years experience in the sector attached to one of leading private banks in Sri Lanka

Interviewed by Dhanushka Wijenayaka

Mr.Chrishantha Lakshman (AIB)

Bank Manager- Private  Bank
Associated Fellow Member- IBSL
Master of Business Administration (Finance)
University of Colombo

1. How do you see the strategic cost cutting requirement of the banks in HR perspective?

On HR perspective as well as a strategic move bank is looking at cost management rather than overall cost cutting structure. On this perspective we should position the employees strategically on their strength and weakness. When we select the people for a business unit pay structure of each employee should be analyzed according to their area of exposure, experience and best mix should be selected according to the business requirement of the particular unit.

 

2. Reducing cost and making profits while giving an elite service to customers. Is this really a challenge in banking locally and also in global context?

This is not going to be challenge when we follow the above mentioned strategy. In further developing this, we should focus on talent management process thereby to train for high performance and retain best talent. Products are also to be aligned with best cost strategy and customer satisfaction to be achieved by delivering more and in quick time than anticipated. For this key attributes of the products needed to be identified to give more value than expected to the customer.

 

3.Would outsourcing and temporary recruitments be a hit to the banking sector, What is your view ?

Both sources are being used at the current context with a view to reduce the fixed HR cost. Outsourcing can be used effectively for non-core banking area in order to reduce the cost. Temporary recruitment is possible in case of specialized areas like IT, Tax Consultancy etc. However in Sri Lankan context legal structure is far more favor towards employee than employer it is going to be a challenge for the HRM when carrying out both options. However better maneuvering of both options cold yield better results on cost structure.

4. How the Talent Mobility should be in banking?

Like any other sector retain the talent is a challenge. However in house mobility can be a strategy to avoid brain drain. Given this digitalize environment retaining the talent, the bank should understand the career interest of the employee by better engagement process developed according to the culture of the bank with the employees. Bank should identify the strength and weakness of the employees as mentioned previously by better employee employer engagement with an objective to place them at the right place at the right time according to their right talent

 

5.What are the changes that HR should implement in future for betterment of the banking industry?

 Future of banking is more relied on technology. Banking sector is pushed towards robotic process and artificial intelligence specially to eliminate continuous process by using robotics. Hence future recruitment should focus on individual who are capable of think outside the box and having the innovation in their genes as routing jobs are going to be out of the equation. Outsourcing and Temporary Recruitment on specialized areas could be advisable given the rapidly changing scenario of the technology in the banking landscape.

 

2.Exclusive Interview with,

Mr. Sandun Hindumage, well advised bank manager with 16 years experience in the industry attached to one of leading private banks in Sri Lanka.

Interviewed by Dhanushka Wijenayaka

 

Mr. Sandun Deleepa Hinidumage(AIB)

Bank Manager- Private  Bank
CMA- Australia
Associated Fellow Member- IBSL
Associated Member - SLIM
MBA- Cardiff Metropolitan University
Post Graduated -University of Jayawardnapura

1. How do you see the strategic cost cutting requirement of the banks in HR perspective?
 
Banking, generally a service oriented business, involves a considerably high staff cost at present. In a high competitive environment, where banks are focusing on maximizing profitability, cost of HR plays a vital role.
 Even though banks rapidly moving to digital platforms, the staff involvement to service maximization is still high. This is mainly due to the digital usage of the community in Sri Lankan context which is still below expectations. Even though the banks invest more funds on digital banking developments, staff cost also continues in a high range due to such reasons. Therefore, staff cost cutting is an essential requirement where all banks applying different strategies.

 

2. Reducing cost and making profits while giving an elite service to customers. Is this really a challenge in banking locally and also in global context?

 

Yes. Service always connected with people. Though different digital methods created, still the involvement of people in all aspects are on.

HRD can implement following strategies to reduce cost while giving an elite service

 

·    Continue all trainings and development programs under digital platform. This will reduce the time involvement and helps staff to spend more time on work. (travelling/duty leave will be reduced)

·    Increasing other benefits i.e. annualized benefits rather than monthly  benefits (Eg Medical, subscriptions)

·    Introducing service champions and recognizing in regular intervals as a motivational measure.

·    Publishing achievements internally to encourage others.

 

3.Would outsourcing and temporary recruitments be a hit to the banking sector, What is your view ?

 

Yes. Different banks come with their own cultures. Customers too adapted to such cultures, and outsourcing may affect on continuation which may dissatisfy customers and employees. In addition, outsourcing methodologies may not be 100% in line with the banks expectations which may create mismatches and disputes too.

 

Specially in recoveries, digital creations, the impact of non awareness on culture and good practices may harm the reputation of banks and may adversely affect on customer loyalty.

 

Banking relationships are mostly long term where customer retention is also very vital. Temporary recruitments may lead towards creating disputes, dissatisfaction on service level standards, which may affect profitability and growth in many ways. 

 

4. How the Talent Mobility should be in banking?

 

Banking is a combination of different tasks and job roles. Rather than outsourcing, banks can create in house talent identification. This is more important towards retaining highly talented and multi talented employees.  It also provides opportunities for employees to grow, and to create unique values on themselves to be the best in the market.

 

When an organization continue with the talent mobility, individual business units can be managed without interrupting service level standards, therefore the business continuity and better service is ensured. An organization may develop a talent mobility culture to,

• Auditing the skills
• Creating talent pools thereby can select the most suitable talent
• Support cross functional projects
• Empowering managers and supervisors
• Creating an internal talent marketplace

 

 5.What are the changes that HR should implement in future for betterment of the banking industry?

 

Creating active pools for selected positions to ensure that the bank has a sufficient resource to fill gaps within no time. HR should try to retain employees rather than recruiting, and to reward based on performance. HR functions in many organizations are not transparent therefore transparency is also very much important.

Welcome to your point of view...