Will this mentality change unlock a new perspective to growth in financial services?

How to unlock a new growth perspective in financial services

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by Wouter Bakker

The financial services sector is transforming. Evolving regulations such as Solvency II put pressure on the resources of institutions, and disruptive technologies such as FinTech, Blockchain and AI are being introduced.

The labour force is also evolving; both employee and employer are making big changes to their respective demands.

As an employer, you need employees with new, tech-related skill sets and people with those skill sets are rare. That’s why human capital is one of the driving factors of success in the financial services industry. Retaining, attracting, and developing talent is becoming ever more important to achieving long-term success.

Never before have the ambitions of our working generations been so vastly different. More than ever, millennials and the following generations look to companies to add meaning and purpose to their work. They are even willing to forgo financially interesting opportunities in place of a purpose-driven workplace. And they take these beliefs with them in their consuming behaviour.

What does this mentality change mean for your business? How will you remain an interesting option for both customers and employees in these times of changing demands? One of the ways in which companies successfully navigate these disruptive forces and drive talent to their organisations is by establishing a clear purpose, and offering opportunities for talent to contribute to this purpose.

Invest in the future

In EY’s “The Value of Purpose,” a survey of insurance executives showed overwhelming belief that purpose-driven businesses perform better, in more ways than one. These executives believe that employees are more satisfied, companies are more easily able to transform, customers are more loyal —  and, of course, that businesses are more profitable — when they are built around a purpose.

“Despite the power of purpose,” the publication states, “few companies are currently run in a purpose-driven way. According to EY research, only 46% of executives said their company has a strong sense of purpose, while another 44% said their company is trying to develop one.”

This means that interesting things are currently happening in regards to purpose. Although there is still time to become a frontrunner, some companies in the sector are already successfully transforming their purpose into action.

A recent Forbes interview with Australia and New Zealand Banking Group (ANZ) chief executive Shayne Elliot is an interesting read on the topic. Elliot speaks about ANZ’s ongoing mission to better the world, making an impact by acting in a transparent, “human-centered” way.

“Some companies just threw money at charities as a reaction [to public distrust],” he said. “But that doesn’t work because it’s not authentic and people can tell that you’re just trying to appease them.”

In other words: to achieve sustainable success, you must align your organization’s purpose with a cause that benefits the world, be that societally, environmentally, or communally.

Pick a cause

You know your strengths. You know what you and your business have to offer. Now think about how you can leverage that strength to offer your customers (and the world) something more, something valuable, something that lasts.

Opportunities that allow you to help people are just waiting to be discovered. EY’s publication calls these opportunities “megatrends.” Access to quality health care, retirement funds, financial support for those in emerging economies — businesses in the financial service sector are in a perfect position to make a difference.

By honing in on your business’s specific strength, you will discover where your place in the bigger societal picture. Banking, life insurance, health insurance — every businesses has something unique to offer. All it takes is a targeted purpose.

Ready to take the next step? GoodUp offers a platform on which your businesses can build around a purpose, connecting those with like-minded ideas and setting you up for sustained success. Give us a call to find out more!