This blog post delves into two critical areas: the distinction between “Digitization” and “Digital” in the trade finance industry and the strategic use of talent as technology continues to advance.
Digitization vs. Digital: Clearing Up the Confusion
A question arose from the previous blog about the difference between Digitization and going fully Digital. Here’s the clarification:
- Digitization: This is the process of converting physical data into a digital format. In trade finance, it involves scanning paper documents, which can then be transmitted and stored electronically. Digitization speeds up processing times, enhances security, and improves customer experiences by creating an audit trail for every document’s journey.
- Digital: The goal for many is to operate entirely in the digital realm. This means that all documents are born digital—created, signed, and processed entirely electronically. No paper is involved at any stage. Although significant progress has been made towards this, global alignment on standards and government legislation and agreements to utilize digital is moving slowly and may make full reality years away.
In the interim, banks and corporations should focus on digitizing more of their processes and investing in software that supports both current and future needs. Solutions like Traydstream are designed to be adaptable, functioning effectively in both digitized and fully digital environments.
Best Uses of Talent: Adapting to Technological Change
As the industry evolves, the role of expert document checkers is changing. These experts are aging, retiring, and often seek broader roles, while the younger workforce is less interested in the time-intensive path to expertise in manual document checking. AI and OCR solutions like Traydstream minimize the need for traditional document checking roles, but what happens to the existing workforce?
Here are some strategies:
- Involve Change Management: Redesign processes to leverage technology while maintaining a mix of job skills that support future needs. Experts will still be necessary for resolving discrepancies and manual interventions, so don’t eliminate these roles prematurely.
- Expand Employee Roles: Moving experienced employees across various operational areas (e.g., from trade to credit to treasury) can enhance job satisfaction and retention. Promising new recruits the opportunity to work with cutting-edge technologies and focusing their efforts on exceptions rather than routine tasks can also be an attractive proposition.
- Enhance Client Relationships: Consider redeploying some of your best people to focus on client satisfaction. These employees can work closely with top clients, providing personalized service that strengthens relationships and increases client loyalty.
Take Action
Now is the time to engage your change management and HR teams. Discuss these topics at your next leadership meeting, create a timeline for digitization, get executive buy in and sponsorship, and consider how your organization can best utilize its talent in this evolving landscape. Let us know how we can support you in this journey.
Until next time…
