Human Capital Considerations for the New Branch

Celent Branch Transformation Panel Series Part 5
by Jean-Marie Ubigau,  Bob Meara, November 9, 2016
Industry Trends
North America

Abstract

Celent has released a new report titled Human Capital Considerations for the New Branch. The report was written by Bob Meara and Jean-Marie Ubigau, both with Celent’s Banking practice.

The fifth in a series based on Celent’s Branch Transformation Research Panel, this report dives into the complex and challenging aspects of human capital.
 
Human capital is a matter of utmost importance: 97% of surveyed institutions regard having a comprehensive staffing strategy as part of their institution’s branch channel transformation program as “somewhat important” (24%) or “very important” (74%).

More than 90% of the institutions surveyed are changing their approach to human capital. Universal bankers are already commonplace and are here to stay. Results vary, however, and may largely be a matter of execution. Recruiting well-qualified staff is the #1 human capital challenge cited by banks and credit unions of all sizes.
 
“Human capital considerations may be both the most challenging and important aspect of branch channel transformation,” says Meara, a senior analyst. “No matter how slick the branch technology environment, it is the desire for staff interaction that continues to drive branch channel utilization.”

“Making these interactions valuable to both customers and the institution will be of the utmost importance for the foreseeable future,” says Ubigau, a Banking analyst.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned subsidiary of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

1

 

Key Research Questions

1

Staffing the New Branch

3

Human Capital Considerations

5

 

Recruiting

5

 

Training

7

 

Metrics and Compensation

12

 

Maximizing Effectiveness with Technology

14

Banks’ Self-Assessment

16

 

Organizational Design and Human Capital

16

 

Maturity

18

Timing, Scope, and Challenges

19

Recommendations

24

Appendix I: Panel Demographics

25

Appendix II: Survey Instrument

26

Leveraging Celent’s Expertise

31

 

Support for Financial Institutions

31

 

Support for Vendors

31

Related Celent Research

32

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