The financial industry experiences rapid and fundamental change. Both established companies and new fintech companies contribute to a great pace of innovation and disruption of the traditional value chains and products.
There is also a competition for retaining customer bases in both the private and corporate markets because of regulatory changes. At the same time, the requirements for risk management, control and solvency are increased. A large customer base combined with a large corporate responsibility create both opportunities and challenges for the industry. The companies that succeed can quickly adapt, either due to technological opportunities, changed customer behavior or new regulations. To succeed, great leaders are needed.
Challenges and opportunities
Banking, finance and insurance have a number of common features that form the basis for both opportunities and challenges within the industry.
Both the banking and insurance industry are characterized by large customer groups and both private and corporate customers. It is a very competitive market which puts great demands on staying relevant. This competition creates a price pressure which leads to some services not necessarily having a positive margin. It is therefore crucial to acquire new customers and retain existing ones, as well as having good customer journeys and good customer service.
The use of technology in the industry is not only important to customers, but also to the improvement and efficiency of internal work processes. Mobile and online banking, self-service, automated solutions, and algorithm-based models are examples of technology that are already widely implemented in the industry. The introduction of new core systems has provided competitive advantages for the few who succeed. The ability to constantly offer smart technological solutions to customers, combined with high quality and ability to assess large amounts of data, as well as cost-effectiveness characterize the future winners of the industry. In a digital world where customers’ funds and deals are available digitally, companies are also vulnerable to data breaches. Therefore, very high demands are placed on cyber security.
For banking, finance and insurance, strict regulations are part of everyday life. The industries are also characterized by cross-border activities. This means that companies often must comply with both national and international law. The regulations are constantly subject to change, while compliance with the current regulations is essential. In addition, customers and society also place high demands on ethics in the industry.
Requirements for future leaders
The future leaders in banking, finance and insurance must have broad expertise. They must have good professional competence as well as regulatory understanding. In addition, a solid understanding of technology, digitalization and automation is important. What opportunities does it bring and what challenges does it present? Skilled bank, finance and insurance executives must also quickly perceive and respond to changes in customer behavior, understand complex value chains and be able to build robust processes based on thorough analysis. The ability to drive active change management in the organization to constantly adapt to changes in customer behavior and technology and regulatory conditions characterize the best leaders in the industry in coming years.
We also experience a tendency where there is competition in recruiting talented people within the financial industry. Value creation per employee is very high, especially in corporate finance and investment banking. The difference between the best and the second-best employee can therefore be very high, which increases the importance of recruiting the right leader.
BackerSkeie has long and extensive experience in recruiting executives in the banking, finance, and insurance industry. We work with clients in:
- Investment banking
- Corporate banking
- Retail banking
- Other financial advisory services
- Capital and fund management
- Pension
- Life insurance
- General insurance
- Insurance brokerage
- Fintech
BackerSkeie has experienced consultants who have executive experience from several of these areas. We also have a good understanding of the value chains and the various actors’ ecosystems, including financial institutions’ cooperation with strategy advisors and lawyers.
Read more about how BackerSkeie works with Executive Search here.
Why choose BackerSkeie for your board or executive recruitment?
Industry specific and functional competence: Through recruiting numbers of leaders to banking, finance and insurance our experienced consultants have accumulated considerable expertise in recruiting board members and executives to this industry.
Placement power and network: We have extensive experience in attracting the ideal candidates on relevant terms. Our brand has a strong reputation in the market, and we have a wide network of candidates and informants that we bring into each recruitment process.
Quality and experience: BackerSkeie has over 15 years of experience in the market, and has consequently established a robust and innovative methodology for recruiting leaders and board members to clients with high requirements. To deliver the best matched candidates, we have a thorough process and uses only certified tools. BackerSkeie has expertise in recruiting.
