The banker in 2050:

The role of the human in fighting

financial crime for the digital age

Executive summary

1950 to 2050: how will the banker have evolved?

Step back to 1950 and banking was driven by pen and paper, and face to face meetings. That’s a world away from today’s connected bank, where there is a wealth of options available to consumers at the touch of a button.


Banking and financial crime are certainly changing fast, with digitisation a key driver for both the institutions and their would-be attackers. Fintech has altered not only customer experience, but also company structure and business behaviour.


I am pleased to introduce this report from the BAE Systems Applied Intelligence team, which examines what the human role will look like in the banking sector of tomorrow.

Many UK customers no longer use a local branch. There were 3,303 closures, equating to 34 per cent of the network, between January 2015 and August 2019, according to research from British consumer group Which? .


A change in frontline service is just one of the ways in which banking will be differently staffed in the future. This report explores how humans and machines will work together, maximising the potential of both, to shape a sector ready for the challenges and opportunities of tomorrow.

 

Mark Rayner

Head of Consulting, Financial Services, BAE Systems

The headlines would have us believe that the robots have won. The future bank is a place staffed by automatons and chatbots, a smattering of traders and coders the only possible human inhabitants.


This is an inaccurate and, frankly, dystopian vision. People will always be at the heart of this industry. I am pleased to introduce this report from the BAE Systems Applied Intelligence team, which examines what that human role will look like in the banking sector of tomorrow.


Banking and financial crime are certainly changing fast, with digitisation a key driver for both the institutions and their would-be attackers. Fintech has altered not only customer experience, but also company structure and business behaviour.


Most UK customers no longer use a local branch. There were 3,303 closures, equating to 34 per cent of the network, between January 2015 and August 2019, according to research from British consumer group Which?.


A change in frontline service is just one of the ways in which banking will be differently staffed in the future. This report explores how humans and machines will work together, maximising the potential of both, to shape a sector ready for the challenges and opportunities of tomorrow.

 

Mark Rayner, Head of Consulting, Financial Services, BAE Systems

Human touchpoints in the digital age

 

Technology has impacted how banks forge and nurture relationships with their customers. The human touchpoints have changed, in response to the new technologically-enabled customer experience.


Human touchpoints are now higher up in the value chain. For example, while a mobile device might be used for a simple transaction, many wealth management interactions remain personal.


“Banks will want to expand this high-net-worth individual-driven trade. It is a highly personal approach banks can afford because these services tend to be very profitable,” explains Rayner. The move to Open Banking is also having significant impact. “I can envisage a world where a customer doesn’t really care who their bank is, as long as the products are performing well, and they are getting a good digital experience,” he says.

We need bankers as well as banks

 

For banks to succeed in this new digital world, they will need to get the balance right when it comes to the role of the human vs the role of technology. Machines may be efficient, but they rely on human personalities and characteristics for their effective operation.


Rob Clifford, Senior Data Strategist at BAE Systems, believes bank employees will need emotional intelligence and curiosity to fully realise the practical applications of technology. “In terms of data protection for example, the human can demonstrate selectivity and discretion in how they approach the sharing of data, as well as in choosing the services they use.”


Mark Rayner agrees that the way people use technology is key to maximising its benefits – in the fight against financial crime, as well as in the development of new customer journey models. “Some banks are realising they can use tech to move from a task-based and scripted approach to a more free-flowing, data-driven investigation approach,” he says.


Instead of people simply following steps, we can have people who are much more inquisitive and skilled at interrogating data sets and who are better able to communicate complex ideas.


This process of change, naturally, will present the industry with new challenges and a need for investment in training. “You’re going to have people who are working through that transition. Currently the rules of engagement are unclear – there are shifting sands as banks move from one model to another,” says Rayner.

We need bankers as well as banks

For banks to succeed in this new digital world, they will need to get the balance right when it comes to the role of the human vs the role of technology. Machines may be efficient, but they rely on human personalities and characteristics for their effective operation.


Rob Clifford, Senior Data Strategist at BAE Systems, believes bank employees will need emotional intelligence and curiosity to fully realise the practical applications of technology. “In terms of data protection for example, the human can demonstrate selectivity and discretion in how they approach the sharing of data, as well as in choosing the services they use.”


Mark Rayner agrees that the way people use technology is key to maximising its benefits – in the fight against financial crime, as well as in the development of new customer journey models. “Some banks are realising they can use tech to move from a task-based and scripted approach to a more free-flowing, data-driven investigation approach,” he says.


Instead of people simply following steps, we can have people who are much more inquisitive and skilled at interrogating data sets and who are better able to communicate complex ideas.


This process of change, naturally, will present the industry with new challenges and a need for investment in training. “You’re going to have people who are working through that transition. Currently the rules of engagement are unclear – there are shifting sands as banks move from one model to another,” says Rayner.

 

Instead of people simply following steps, we can have people who are much more inquisitive and skilled at interrogating data sets and who are better able to communicate complex ideas.

 

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Identifying the

skills we will need

tomorrow

Identifying the

skills we will need

tomorrow

Supporting the 

workforce to

ensure success

Supporting the 

workforce to

ensure success

Working with

Artificial Intelligence 

not against it

Working with 

Artificial Intelligence 

not against it

Making the

technology

work for us

Making the

technology 

work for us

Tackling

human

vulnerability

Tackling

human

vulnerability

Developing a

holistic fincrime

approach

Developing a

holistic fincrime

approach