In the wake of several well-publicized scandals, the banking sector has faced increased scrutiny. Ensuring that the organization complies with federal regulations and acts with integrity makes human resources in the banking industry an essential function.
Aligning employee behavior with the values of an organization is a key responsibility of human resources. Integrity is paramount in the banking industry, not just for regulatory compliance, but for client confidence and retention. The human resources staff consistently models and communicates the organization’s values.
Risk Management and Compliance
FGIB cites risk management as an area where human resources professionals play an important role. In a heavily regulated industry such as banking, human resources maintain corporate responsibility and ethics statements, reviews auditing procedures, enforces whistle-blower protection policies and drives employee recruitment and retention as part of their risk mitigation and compliance efforts.
Banks must transition their business models as the industry-wide shift to digital banking continues, and traditional banks find themselves competing with neobanks and industry disruptors. Human resource professionals help implement changes such as branch consolidation, digital transformation, and workforce reallocation.
Human resources in the banking industry include anticipating business needs and monitoring factors that will strategically impact the organization. A strong human resources function is critical to success in the ever-changing banking landscape.