Effective staffing for banking’s digital future

A version of this article appeared in the BAI Special Report: The continued digital evolution in banking. You can find more insight within on sustaining deposits via digital channels, tapping BaaS for an enhanced branch role and making fraud protection a priority during digital growth.

Sekou Kaalund, U.S. Bank EVP of branch and small business banking, is responsible for leading 13,000 employees across 2,200+ branches located in 26 states and representing more than $10 billion in revenue.

His strong track record for developing talent, forming inclusive teams and leveraging a vast network to connect people with opportunities has led his insights to be featured in Forbes, NBC, CNBC, Black Enterprise and Essence.

The digital evolution is transforming the banking industry. Important to that transformation is ensuring that staff have the knowledge and expertise to guide it. How should banks and credit unions ensure they have the right people in the right jobs?

As leaders, it is imperative that we put the time and resources into developing our talent for the changing needs of the industry, but more so for the needs of our clients. The embrace of digital is a big piece of what is driving that change. This can mean upskilling talent to stay ahead of the changing demands, reskilling others when the need has materially shifted to something entirely new and, in some instances, looking outside for specialized skills—all with the needs of clients at the center.

For example, a few years back, when U.S. Bank set out to create a new mobile app, we had to staff up to take that on. So, in some instances it makes sense to bring in talent, while in others it is more efficient and beneficial to partner with outside organizations. That includes fintechs when the need may be highly specialized or limited to a particular project.

It is also not only about skills you would associate with digital—as digital is more widely adopted, what we need from our branch teams changes. This leads to broader applicant pools with individuals who may not have banking experience, but they do have experience asking questions and engaging clients in ways that help us forge deeper, more meaningful relationships.

We want candidates who can engage and reengage, explore, recommend and deliver for our clients. They need to be comfortable making outbound calls, following up on leads and alerts and facilitating meaningful conversations. We want them to be personable and approachable. Those skills, along with teamwork, are what we look for in a successful client-facing banker. We also leverage data-backed insights to develop a job-specific skills profile. And we invest in our current talent with the goal of building the skills and behaviors that consistently drive strong performance and overall branch-banking success.

Which bank departments are seeing the greatest shifts in the talent and expertise required?

I would describe it as more of an evolution than a shift, with some skills or expertise changing while others are made obsolete as we meet and stay ahead of client needs and expectations. This is occurring across financial services organizations, from back-office support functions to frontline, client-facing sales teams. With the increase in do-it-yourself (DIY) and do-it-together (DIT), we need the right talent across the board to complement the technology available and provide additional depth of service.

It’s also the client-service piece and how our bankers engage clients. Historically, interactions may have been more transactional in nature, but digital is helping with those. This means we need bankers who are comfortable asking questions, listening, analyzing and making informed recommendations based on what they learn. We want clients to see a trip to our branches as a value-add experience, and that starts with our team. And with the emphasis on digital, whether that means a client using our tech in a DIY or DIT way, we need to ensure our team can help educate clients on how to use the tech most effectively.

How do you manage anxiety among legacy staff that the digital evolution may cost them their jobs?

The best way to manage anxiety is to invest in the growth and development of the team, but there will always be a need for the deep knowledge and expertise that tenured employees bring to an organization. With their rich history at the bank, our experienced and tenured employees are critical. Even more important are their connections to our clients. We can upskill and reskill them on product changes and technology, but relationships developed over time cannot be taught.

How can banks ensure that legacy staff can continue contributing their experience and expertise?

It is critical that we lead with intentionality to leverage the insights of longer-term team members. Our legacy team members with deep client relationships take on the role of onboarding and mentoring our newer employees. Longer-term team members also have opportunities to branch out and take on new roles with the bank, such as serving as a project manager or moving into non-client-facing roles like compliance and risk.

What is the role of legacy staff in onboarding new—and potentially young—tech talent?

Understanding and embracing culture is a critical part of onboarding and engaging new team members, regardless of what service or function their talents serve. We want our full team to be part of that process to ensure we are all on the same page when it comes to orienting everything we do toward the needs of the client.

A prime example is moving away from a product-led approach. We want our team members leading with questions and discovery to have a better understanding of the needs, wants and motivations of clients, and with that we can make more informed suggestions to help them be successful.

How do banks compete with big tech companies for software and data engineers—particularly in an environment with a shortage of talent in these areas?

The reality is that financial services companies are tech companies as well. When we benchmark our client experience, digital or otherwise, it isn’t just against banks; it’s against the best customer experience our audience can think of. To compete, we are looking for top talent who want to be part of that.

In thinking of financial services companies as tech companies, there is a very broad range of opportunities as well as specialization opportunities for tech employees in banking, whether it’s driving the tech that bankers and employers use to maximize efficiency, understanding the customer and their needs or creating tech that provides customers with actionable insights and drives deeper dialogue with bankers. In all those scenarios, technology is at the core.

A key cultural shift companies across industries are experiencing is this generation of college students and recent graduates who are particularly interested in the impact a company has on clients, communities, environment, etc. Historically, perhaps this was a smaller decision point in considering whether to work for a company, whereas now, with details on how a company embraces corporate responsibility readily available, potential employees can consider impact.

The labor market for technology will remain competitive. Therefore, in addition to these opportunities, financial services can differentiate themselves based on the broader impact employees can have with a mission-driven approach. At U.S. Bank, our core mission is to invest our hearts and minds to drive human potential. I think the motivation to have a multifaceted impact as an employee is attractive for this generation of talent.

Is there a benefit to partnering with local colleges and trade schools for hiring or training or both?

We want to be seen as an employer of choice within the communities we serve and an organization that our team members are proud to be part of. That can play out in a number of ways, but we do strive to be visible and active in our local community and, in turn, in front of potential team members for consideration. We offer a variety of early career programs and internships for high school to masters-level students. Some programs are more generic and cover multiple facets of banking, while others are more aligned to specific roles or skill sets.

I spend a fair amount of time engaging with young people through mentorship organizations, speaking with student groups, etc. A big piece of it is helping them understand what a career in financial services can be and what they can help create. I tell my own story of thinking from a young age that I wanted to be a politician, and how after I had exposure to financial services through a stint with the Federal Reserve Bank of New York, I realized I could have more impact—and the type of impact I was drawn toward, helping families and communities achieve their dreams—in this industry.

Sekou Kaalund is Executive Vice President of Branch and Small Business Banking at U.S. Bank.