by frimufilms : freepik

Future of Banks is digital after Corona Virus

Pandemics have always changed the world for some good and a lot of bad. Millions of people died in several pandemics in the past, as thousands are dying in the current pandemic situation going on. Coronavirus has turned several things upside down in the world. From businesses to industries, to systems and individuals, humans are adapting towards the situation day by day.

The banking system in the world is not untouched from the coronavirus pandemic that has continued its havoc to wreak upon us. Since social distancing is the new normal, and the socializing of humans is at an all-time low businesses are rapidly adapting themselves with the situation. Banks, in the pandemic, are seeing the rise in their digitalization. Many experts predict that the future of banking is digital where nothing would require the customer of a bank to present himself in the nearest branch, especially for any transaction. This prediction about the digital future of the banking system all over the world is out there before the coronavirus pandemic hit the world and took under control. It is just the case that despite knowing everything the way customers interested in the banks, transactions, businesses, brands everything was changing at a slow rate. The security and confidentiality, the use of data by banks, etc. are witnessing a review of the policies. The pandemic acted as a catalyst in the change.

Here are some activities of some companies in last few months to look at an insight into the developments in banking systems which the pandemic catalyzed that allow their customers to pay through a gateway of their own or a third party:

* PayPal and Honey: PayPal acquired the shopping assistant and rewards program company Honey for four billion dollars. This acquisition has been done after PayPal expanded its reach to the e-commerce sector in November. This signifies the importance and building of financial services that have become part of the new normal life after the COVID pandemic.

* Apple and Goldman Sachs: these two companies are giants in their own fields. One of them which is Goldman sachs is an esteemed rating agencies for economies through the world while other is a technology giant. Apple announced that the partnership will follow the same pattern when apple had joined hands with Amazon to use it’s a platform for payment. The new apple credit card allows apple users to lay using their own iOS digital wallet app.

* Visa and Plaid: Visa is known as a service provider and a big company in the global banking ecosystem. The pandemic situation has made the company to buy startups, several in number, aggressively to expand its business. In one such move plaid has been acquired by the common in five billion dollars.

These are a few examples of what is going on after the pandemic hit the World in the banking ecosystem globally and locally in various countries. All the procedures are going digital. World health organizations in its guidelines encourage contactless consumption or usage of any kind of services. Hence people are encouraged to order products prepaid and pay the businesses digitally.

Positive impacts of Corona Virus on the Banking ecosystem:

First, let’s talk about the bright side. One of the major reforms as we can say has been being witnessed in the banking system is the increasing virtualization of the bank customer interactions. Even earlier, digital services was there but inky as an option. But now we, both organizations and customers have remained that digital is not an option. It can be made the only choice. And so far it has not disappointed. Growing awareness and new generations familiar with advanced technologies have been becoming the bridge of conventional banking and the post pandemic banking system which is going to be the new normal. There were a lot of security concerns earlier as well, but slowly but hopefully they are being tackled with by the governments as well as the companies. The pressure from the customers has forced the banks to further compel traditional banking institutions to fast track their ddigital efforts to digitalize themselves.

And that is why, as we saw in the above examples of companies trying up with financial technologies service companies to handle their payment stems which are going to be digital.
More developments due to the pandemic in the banking system are reported as resulting in market instability, several acquisitions are taking place by large banking institutions of the smaller ones or bigger companies hiring banking service sector companies for their business transactions earlier that were almost none digital.

Negative impacts of coronavirus on the Banking system

The impact of the coronavirus pandemic has never been seen before. Not only the financial institutions are impacted the customer is also being affected and hence it is resulting in a valid change in customer behavior. The surge in the insecurity of customers to invest in safer options than playing at a risk has impacted the VC funding of existing and new financial technology firms. The worst effect of the pandemic situation can be said on those companies which are being shut down because bigger fintech companies have tied with traditional companies who were not digital at all before the pandemic.

Not only this but the coronavirus has made the world slow down and become still. Many countries because of the pandemic have been in full and partial lockdown for months and hence the transactions by customers to institutions using their banks and their payment services has become a downfall side of the roller roster ride the banking ecosystem is on. The fintech service companies used to charge a small fee on every transaction from their customers but since the number of transactions is touching new low daily the fees and the revenue of these companies are also becoming fewer and fewer day by day. The banking ecosystem is also affected by the closure of hardware providing companies and industries for their smooth functioning.

The pandemic has affected each and every sector of the economies globally. Things are never going to be the same as it was in pre pandemic world. And the baling ecosystem is no exception.

by Felix : rawpixel

What Every Manager Needs To Know About the Succession Planning

What is Succession Planning

 The succession process is that process where an organization ensures the recruitments of employees and filling of each key position within an organization. Through this process, the critical post remained opened. The management can fill key posts within the organization. This is a systematic process for preparing the employees to fill the vacant posts. 

Importance of Recruiting

Succession plans are very important for any can give opportunities to the senior’s employees to develop their knowledge, skills, and abilities as well as the promotion of an organization. 
As it is the systematic way so it can involve the transfers to different jobs or departments, and on job shadowing. So it can give some opportunities to the employees to see various jobs.
With the expansion of any organization, there is a chance of loss of key employees. It can give the opportunities to the senior’s employees to get the promotion and fill the critical position of an organization.

Who Needs Succession Planning?

There is a need of succession planning for every organization. The cross-training can help any organization for employees to prepare themselves to fill the vacant post of employee resign. Another employee can perform the same role. 
It is the process is identifying key positions in the organization and mapping out the ways to ensure the organization has the right people in the right place with the right skills and experiences.

Filling Succession Roles

Succession planning is the way to commit their employees to refill the vacant posts. So employees remain ready to take over the responsibilities for the vital job. It will allow the managers to know the critical employee for their organization. 

Advantages for Employees

Every employee wants to promote, and he waits for critical positions, so employees know the importance of new roles and critical areas within the organizations. 

The next role can boost the self-respect and self-esteem for employees. Further, it will also increase the efficacy and values of an employee. It is also a way of desire for career development as well as care opportunities by identifying the skills and experience of that position. 
When there is a career plan for employees, then they will work hard to achieve career goals. 
In every organization, the values of an employee are shared at the creation of any opportunity. 

Advantages for Employers

Employers can grow their organization with the help of their employees. Further, they don’t need to hire any specialists from outsourcing at the time of any resignation from the crucial position. When there is a loss of critical employees, then it will undermine the abilities to accomplish the main objectives of your organization. The Succession planning will help you to make necessary changes without being hampered by a lack of replacements.
The employers can choose the best employees t to refill the critical roles as the managers share skills, knowledge, and experience of all employees to top management. So the employers can give them better opportunities of career development. 

Develop Employees for Succession Planning:

There are different ways to develop the need of your succession plan like 
New Assignment to Special projects
Team leadership Roles
Internal Training 
External Training     

The organization can maintain superior employees as they are motivated and engages to see the career path. For effective succession planning, you should identify the organization’s goals. As every organization needs to identify the developmental needs of their employees so it will give a chance to the employees to fill the critical position, and it will also increase the retention rate of employees for any organization.