In this blog post, Traderoot CEO, Jan Ludik, discusses the impact that the Great Resignation is having on the banking industry, and how fintech can help banks maintain their services.
The COVID-19 pandemic had an unprecedented impact on both society and the economy globally, with countless ripples continuing to make themselves felt in ways we could never have anticipated. One of the biggest shifts that occurred as a result of social distancing and enforced lockdowns, was the advent of remote work, or work-from-home (WFH). As companies across the globe scrambled to implement new processes and technology to manage remote workforces, employees began to enjoy the flexibility and work-life balance that came with remote work.
But as the pandemic has faded and life has returned to a semblance of normality, many employers are beginning to request or even enforce a return to office work. In many industries, this is met with resistance from employees, leading to the coining of terms like Quiet Quitting and the Great Resignation. With over 4 million Americans alone residing in August 2022, the impact of the Great Resignation is being felt globally and across industries.
And the Banking sector is not being spared. “Never in my 40-plus years in banking have I seen labour shortages at the level they’re at now,” Huntington Bancshares CEO Steve Steinour told Insider Intelligence. “The job openings exceed the supply. The economy is booming.” This labour shortage is being felt across the banking sector, especially at the lower end of the employee range, and this was reflected in a report by Bruce Paul, Managing Director of Banking Research at Rivel Banking, who noted that 80% of community banks and credit unions cited “staffing issues” as their biggest concern. Furthermore, this staffing impact is being felt by customers, with Paul’s report also indicating that the number of households reporting that their bank had been unresponsive had increased by 212%.
So what solutions can banks enlist to counter this issue? Several banks are working on incentive approaches to retain or attract staff. These solutions include increasing employee wages, offering better-paid leave and time off options, enlisting hybrid and remote work options, and breaking down the banking industry’s traditional hierarchical structure to enable employees to feel more empowered and to drive innovation.
However, various fintech solutions offer alternative solutions, such as BaaS, for banks to begin automating and streamlining certain functions and processes to reduce the impact of staff shortages.
Reconciliation is a key process for banks, as it ensures that their records match those of their counter-parties. However, it can be a time-consuming process that requires a significant amount of manual intervention. Fintech solutions, such as Tradeoot’s B2B Billing and Reconciliation Engine, can help streamline this process and reduce the need for manual intervention. By automating the matching of transactions, banks can free up their staff to focus on more value-added activities, such as customer service and relationship management.
Settlement is another critical process that can be automated using fintech solutions. The settlement involves the exchange of funds or securities between parties, and it can be a complex process that involves multiple counter-parties. Fintech solutions, such as Traderoot’s Payment System Operator, can help to simplify this process by centralising clearing and settlement for all payment streams. By automating the settlement process, banks can improve their efficiency and reduce the need for manual intervention.
Fintech solutions, such as Traderoot’s Payment Service Provider – Channel and Payment Service Provider – Acquirer, have powerful management tools that make day-to-day operations and the enrolment of participants (including merchants and banks) a much simpler and faster process. These systems also automatically calculate interest, fees, and commission, aggregating this data into general ledger forms to enable faster and more sound business decisions.
By automating payments and billing, banks can reduce the need for manual intervention and improve their efficiency.
Reporting involves the collection and analysis of data, which can be a time-consuming process that requires a significant amount of manual processing. Fintech solutions, such as data analytics software and artificial intelligence, can help banks to automate the reporting process and generate insights more quickly. By automating reporting, banks can improve their decision-making and reduce the risk of errors.
Fintech solutions offer a way for banks to automate tasks related to reconciliation, settlement, payments, billing, reporting, and more. By leveraging these solutions, banks can improve their efficiency, reduce the risk of errors, and fill the gap left by staff shortages caused by the Great Resignation. To learn more about Traderoot’s solutions, contact our team at email@example.com, or visit https://traderooteurope.com/traderoot-fintech-solutions/