by Jonathon Kent
Financial services have undergone dramatic change over the past decade and the pace of change only looks set to accelerate. Consumers have become used to doing their banking online and in recent years the arrival of mobile banking apps for smart phones has made our financial lives even more convenient.

But the growing role of technology has not worked out so well for those working in banks, as some roles are becoming obsolete. In Bermuda, jobs have been shed in recent years at all the three major retail banks, Butterfield, HSBC Bermuda and Clarien.

Butterfield is the only one of the three to publicly declare the size of its Bermuda workforce on a regular basis. At the end of 2008, Butterfield had 803 staff based on the island, according to the bank’s annual report. This number had fallen to 572 by the end of last year, according to a regulatory filing with the SEC, representing a decline of 29 per cent in the space of a decade.

This is an ongoing global trend. Job losses or reassignments will impact 1.3 million bank workers in the US alone by 2030, according to a report from market research firm IHS Markit in April this year. Roles the report identifies as being most at risk include customer-service reps, financial managers, and compliance and loan officers.

Big banks are already using artificial intelligence to mimic bank employees, automate processes and preempt problems, according to a 2018 report from Business Insider Intelligence.

So what type of jobs will bank employees be doing in the years to come?

The technical skills to work with cutting-edge technology will be helpful. Some existing employees are likely to be offered retraining to take on more digitally-focused roles. Skills like coding and app development are already in demand. Cybersecurity is a critical issue, so those with the knowhow to stay one step ahead of the hackers will also be highly valued by banks.

Data from LinkedIn Talent shows that at Goldman Sachs, the ten fastest-growing skills listed by employees are computer science-related, while at Bank of America, the first five fastest-growing skills are programming languages.

However, the experience of Bermuda banks may be a little different, given how much smaller the market is and how human relationships can count for more in a close-knit community.

Indeed, fintech adoption has been slower in Bermuda than in many places in the world, according to Chris Maiato, EY partner and leader of the firm’s Bermuda, Bahamas, BVI and Cayman Islands advisory practice.

“Bermuda is aligned with global trends in payments and online transfers, but we don’t have financial planning or insurance services — however, some are looking at that,” Mr Maiato told The Royal Gazette.

Websites like Rocket mortgages and LendingTree allow consumers to borrow money online without even speaking to another human. Almost anything purely transactional is digital already or is going to be soon.

While the desire for ever-increasing digital convenience is prevalent among younger consumers, some, especially older generations, may still prefer doing their business on a more personal level.

This will especially apply to more complex areas where they may be multiple options, such as investment advice, and in dealing with customers when the technology malfunctions. So it’s a safe bet that banks will still need some real people too, for the time being at least.

This article was originally featured in the TOP TEN 2019 edition of the RG Business Magazine.

The post Robots can’t do it all appeared first on RG Magazines.

How does Clarien Bank try to keep improving customer experience?

At Clarien, we have a purpose statement: “We make it easier for clients to navigate their financial future.” I would expect any member of staff to know that statement. 

Our first value is that we’re client-driven.

We invest in technologies to enhance products, services and efficiency. We take a client-centric approach. Our online banking tools are competitive, and our mobile app was launched last year. We have chosen best-of-breed technology partners, as I believe this is not a time to experiment.

With regard to information security, our client data are our crown jewels. We’ve invested heavily in hardening our external walls as well as information security protocol internally to make sure the crown jewels are always protected.

Are human relationships still important in banking?

Absolutely. However, clients want choice in how they interact with us. If they’re going to act through digital means, then we have to provide that choice to them. For those who don’t wish to go through that channel, we have to make alternatives available to them. So, we’ve coupled the automation with people support.

Human relationships are less important in basic transactions. For anything more complex, technology has a role to play, but you cannot totally replace humans. For example, our iTrade platform. You can totally self-direct and not interact with a person at all. However, we have two very experienced financial advisers, and you can ask their views about certain stocks or the state of the market. They can provide that value-added service that technology can’t. 

Is there more technological progress to come?

Yes. Overlaying the digital capabilities with the skills of the organisation, we can provide experiences to the customer that they didn’t even know they wanted. One of our goals is to utilise the data we have about our customers to provide services to them in a more focused way. Some clients would not wish us to use that data and will have the choice to opt out, but for those who do, we can create unique solutions based on their spending habits, or how they take advantage of financial services.

An analogy is Netflix. The TV experience was to go through the channel guide and choose what to watch. Netflix gives me mobility. I can log on anywhere. They’ll show exactly where I left off, and they’ll recommend choices for me based on what I viewed in the past. I would love to see Clarien become the “Netflix” bank offering clients financial services how, when and where they want.

How have things changed since Jamaican-born billionaire Michael Lee Chin’s NCB Financial acquired a majority stake in the bank in December 2017?

The transaction provided stability for the organisation’s future. We have now moved past integration and onto transformation. We are more focused strategically than we were able to be in the past.  

Michael Lee Chin’s ethos is allowing us to think like that. He is very entrepreneurial. One of the things he reminds us is, we must always think like it is “day one” in the organisation. Once you start thinking it’s “day two” you lose that entrepreneurial spirit and drive of “day one”.

What do you to relax?

I have two primary hobbies, both centred on family. I volunteer as president of the Bermuda Equestrian Federation, and I’m an avid equestrian supporter but do not compete. I’m involved on the organisational side. Both my boys, Casey, 18, and Christian, 17, compete and my wife is active behind the scenes as well. My second hobby is boating. So, when I’m not here and not doing chores in the stables or at the National Equestrian Centre, then you’ll probably find me on my boat. That’s my idea of relaxation. 

This article was originally published in the May 2019 edition of the RG Business Magazine.  

The post Aiming to be the ‘Netflix bank’ appeared first on RG Magazines.

While Bermudians were distracted by Cup Match, the US’s Office of the Comptroller of the Currency (OCC)- which regulates so-called “national banks” through Federal charters- published guidance on how it would now accept applications from fintech companies seeking to conduct banking business across the US, other than the taking of deposits.

Bermuda’s government may have thought that it got there first with its own recently passed fintech banking legislation: and it did. However, it was always unlikely that the world’s largest economy, with its well-developed start-up culture and infrastructure, would allow others to control the direction of development of fintech banking services and regulation.

In addition, the US Treasury has also now endorsed the concept of “regulatory sandboxes”, as already promulgated by the BMA; so the question now arises as to how Bermuda will be able to maintain an “edge” in both areas.

Somewhat ironically, help may come from regulators at the state level in the US, jealous of their perquisites as the current primary source of regulation for non-depositary financial services companies: an OCC fintech bank charter would relieve its holder from the complexities of state-based licensing. And, of course, one can rely upon New York’s Department of Financial Services to ensure that its views are made known: “Toddlers play in sandboxes. Adults play by the rules”. So, prepare for the customary turf war between the states and the federal bureaucracy.

Fortunately, in the BMA, Bermuda has a capable and well-respected regulator, which is long accustomed to dancing with and around the larger and more self-important primates.

The post Entry of the 800lb gorilla: the US is waking up to fintech appeared first on RG Magazines.

The “Just Good Business” campaign (http://www.goodbusiness.bm/) highlights efforts underway by the government, responsible authorities, and Bermuda-based international and local businesses to ensure the island meets the highest standards for anti-money-laundering (AML) and anti-terrorist-financing (ATF).

The campaign is supported by the National Anti-Money Laundering Committee (NAMLC), Bermuda Monetary Authority (BMA), and Bermuda Business Development Agency (BDA), along with numerous major industry groups. These include: the Association of Bermuda International Companies (ABIC), the Association of Bermuda Insurers & Reinsurers (ABIR), the Bermuda Bankers Association (BBA), the Bermuda International Long Term Insurers & Reinsurers (BILTIR), Bermuda Insurance Management Association (BIMA), Bermuda Chamber of Commerce, and the Bermuda Stock Exchange (BSX).

As well as educating on the importance of AML/ATF measures—such as filling out “Know Your Customer” (KYC) documentation at banks and other paperwork—the campaign is also a call to action: individuals and organisations are encouraged to find out what their legal obligations are and to report suspicious financial activity. Authorities depend on this information, known as “suspicious activity reports,” or “SARS.”

How do you recognise suspicious activity? Here are some signs:

• If you work in a money service business and a customer makes regular transactions by cash to different recipients
• If your customer doesn’t know the recipient or purpose of their transaction or only wants to see a particular “friendly” teller/employee
• If you work in property/car insurance and a customer cancels insurance and seeks a cheque as reimbursement after paying in cash
• If you work in the travel industry and a client pays for high-price tickets last minute and in cash

To file a SAR, in confidence, please contact the Financial Intelligence Agency (FIA) at 441/292-3422 or https://www.fia.bm.

This article was featured in the May 2018, RG Business Magazine.

The post It’s “Just Good Business” to fight global crime appeared first on RG Magazines.