Successful Digital Talent Management in the Banking Industry in Southeast Asia (SEA)

In order for banks to acquire talent with skills that they lack, there are two main approaches: (1) to develop talent internally or (2) to hire talent from outside. Based on the time it takes to acquire talent in each approach as well as the different pros and cons on employee motivation, it is vital to plan a talent-acquisition strategy that combines both of these approaches (Figure 2).

As this approach enables the use of current resources, it makes it easier to plan what personnel are needed. On the other hand, this approach may face hurdles in the form of the time it takes to develop talent and maintaining the motivation of employees toward their studies. Innovative banks are attempting efforts that utilize technology to overcome these hurdles. For example, by planning reskilling efforts according to the skill sets of employees with initiatives such as customized digital skill training and digital literacy improvement programs, it is possible to advance the talent development while eliminating the bottlenecks. Singapore’s United Overseas Bank (UOB) has raised the skills of its employees to the minimum level required by implementing data literacy training. From here, it considers factors such as the aptitude, skills, and roles of its employees while implementing practical training programs from basic data analysis skills to their application to solve business challenges. Singapore’s Standard Chartered Bank, meanwhile, matches its employees’ skills with internal operations and provides them with opportunities to improve their skills. It is also possible to offer personalized learning support and career development with the use of generative AI, which has grown phenomenally in recent years.

If there are no internal talent development initiatives, hiring talent from outside the company will increase costs temporarily and impact the motivation of existing employees. Nonetheless, it is an effective approach. In the SEA region, utilizing the human resources of nearby countries with differing salary standards is relatively easy. Being able to hire skilled digital talent cheaply without significant obstacles such as differing time zones and culture is a hiring technique unique to SEA.
To hire sought-after talent from outside, strategies could include declaring a digital vision, promoting the appeal of one’s innovative workplace environment and growth opportunities, and recruiting persons with an employment background in technology companies who possess a high level of expertise or those from “unbanked” demographics. For example, Kasikornbank in Thailand recruits new digital talent from outside and sets itself targets such as to become a comprehensive regional technology company. Meanwhile, Oversea-Chinese Banking Corporation (OCBC) Bank in Singapore provides grants to the likes of the National University of Singapore as a strategy to hire talented young personnel who have acquired digital skills. In terms of hiring talent from outside, aside from recruiting, leveraging outsourcing to obtain support from specialized talent for a fixed term can also give greater flexibility in the options available to you.

This report has used examples of the talent and organizational measures required for the banking industry in SEA to overcome its digital competition.
Lastly, we would like to introduce areas in which ABeam Consulting supports talent management.
ABeam Consulting has a broad track record of support not only in SEA but in multiple regions, including Japan, and multiple industries to transform talent acquisition and the organization’s cultures. ABeam Consulting offers both theoretical and practical support (Figure 3).

ABeam Consulting has a track record of supporting DX at banks in SEA countries. We build the optimal support framework by leveraging our local consultants, who are experts in the local culture and customs, together with our Japanese consultants who have global know-how. In addition to evaluating the digital skills of employees and designing and implementing training programs tailored to the individual’s needs, we help your employees learn basic digital skills through practical training based on case studies.

Based on a standard talent model such as IPA, we define a practical DX talent model customized to the DX strategy of each client. We help each client acquire and train the personnel necessary to advance its DX strategy, such as by clarifying the skills and mindset needed for its DX talent model, estimating the number of talent needed, formulating a development policy/plan, and reviewing its HR system. 

In addition to introducing the latest HR technology such as AI and data analysis and cloud HR systems, we build a communication and support framework with relevant personnel. By doing so, we help to minimize the burden placed on employees or any pushback from them and facilitate your adaptation to the transformation.

We encourage interested companies to get in touch with us to have discussions and exchange views.