Technology Expertise in Banking Boardrooms ​

Banking technology investments are growing at an unprecedent scale

Banking CEOs and Chairs have publicly discussed the importance of technology and have committed billions to tech

We continue to drive change in our approach to technology “

Noel Quinn, CEO
HSBC

We are putting technology and industrialisation at the core of our development”

Laurent Bonnafé, CEO
BNP Paribas

It is critical that we keep pace with innovations in technology”

Jamie Dimon, Chair & CEO
J.P Morgan

Innovation remains a top priority. In 2022 we plan to … extend our digital leadership into the future “

Brian Moynihan, Chair & CEO
Bank of America

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The benefits of a technologically- fluent board are:

A more holistic view of organizational strategy

Digital transformation is an ongoing evolution of the business with no end goal and should be a topic integrated into every board conversation.

Diversifies thinking – and talent – at senior levels

Hiring technology board members has proven to be a successful way to introduce diverse talent to the board. Of the technology directors appointed to banking boards in 2021 and 2022, 62% were female.

Mitigates the threat of disruption

New market entrants have capitalized on the use of technology to appeal to wide variety of customers, disrupting the traditional banking space.

We analyzed 60+ banks & specialty finance institutions to assess the current level of tech expertise present in their boardrooms

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Tech expertise in banking boardrooms has been increasing

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However, this expertise largely comes from legacy talent pools, rather than innovative market entrants or Big Tech…

Over 70% of tech talent on banking boards comes from within financial services or traditional areas of the technology sector such as hardware and telco.

Only 15% of directors with tech expertise come from digital, software or information technology companies.

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...and current tech directors under-index in key experience areas such as data, digital, and cybersecurity

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Throwing money at the problem will not move the dial, it’s about forming a “future-proof” leadership team

To gain advantage through technology, boards must have:

A strong understanding of digital technologies impacting the banking sector their implications for business transformation.

The experience of board directors should align with the firm’s innovation strategy, especially when considering new technologies that impact organizational goals.

Technology Mindset

A set of attitudes and behaviors that enable leaders to see how technology can open new possibilities, and productively disrupt the status quo.

Boards should encourage risk-taking with new technologies, including allowing for constructive failure and pivoting quickly to test new solutions.

Talent strategies to adopt a tech-fluent culture organization wide

• Assess talent to ensure C-Suite leaders have the tech agility to initiate cultural change and take the company into the future
  
  
• Develop practices that harness leadership skills and behaviors to embrace technology and effect organizational change
  
  
• Find leaders in market and internally through executive search that will optimize technology in every business situation
  
  
• De-risk leadership succession and transition to ensure technology evolution is cohesive and universally supported
  
  
• Modernize operating models through executive search, succession, and advisory capabilities