LOOKING AHEAD

RIC DEVORE

REGIONAL PRESIDENT, PNC

Q: HOW IS ARTIFICIAL INTELLIGENCE SHAPING FINANCIAL MANAGEMENT?

BANKING INDUSTRY PRIMED FOR TECH INNOVATION

While many other industries with high volumes of in-person interactions such as restaurants and entertainment often could not operate during shutdowns, the banking industry had many pre-existing digital options. A significant portion of its customers were already using banking apps, websites and other digital tools to manage their money when the crisis hit.

For industries like it, the question during the pandemic became one of expanding adoption of virtual practices and use of technology already in place rather than having to invent new interfaces on the fly. For a sector primed for further rapid innovation and consumer adoption, the years ahead hold critical questions about the future of brick and mortar, the role of technology and big data in meeting consumer demand, and equity and wealth distribution. A: With massive volumes of data being generated by networked devices – and backed by advances in computing power – the use of Artificial and Machine Learning continues to accelerate. The financial services industry is harnessing the power of AI and ML to help reduce exposure to fraud, execute faster payments, and provide data-driven business insights.

While AI and ML drive automation, optimization and intelligence throughout the financial services ecosystem, the adoption and integration of AI-based engines and ML algorithms is perhaps most palpable in treasury management. Because of ML’s propensity for recognizing patterns in data and behavior, it is commonly employed to help identify fraudulent transactions.

The convergence of mobile technology and digital commerce has ushered in realtime payment innovations, and can allow participants to send and receive funds immediately at any time. AI- and ML-enabled technologies are crucial for monitoring and analyzing transactions in the fractions of a second necessary to facilitate real-time payments. Machine learning is no longer a curiosity or novelty, it’s a business imperative.

MATT ELLIOTT

MICHIGAN MARKET PRESIDENT, BANK OF AMERICA

Q: WHAT DOES THE FUTURE OF THE CUSTOMER’S RELATIONSHIP WITH A BANK LOOK LIKE?

A: The trend toward customer use of digital services was well underway prepandemic, but COVID-19 accelerated the adoption of digital banking across every customer segment. In many cases, we see customers who had never leveraged our digital technologies now utilizing them on a regular basis.

Today, about 70% of Bank of America consumer households and small business clients as well as 77% wealth management clients are digitally active. We predict that soon 90% of cash transactions can be done digitally. Our digital investments and High-Tech/High-Touch strategy help us deliver more personalized experiences for customers regardless of whether they choose a digital or in-person experience.

Despite greater digital adoption, our financial centers will continue to play an important role in delivering service and solutions. While fewer clients are visiting financial centers, they continue to desire personalized advice and guidance and can speak with specialists about their banking, lending and investing priorities at a financial center.

KENNETH KELLY

CHAIRMAN AND CHIEF EXECUTIVE OFFICER, FIRST INDEPENDENCE BANK

Q: WHAT’S ON THE HORIZON FOR THE FINANCIAL INDUSTRY AND HOW DO WE ACHIEVE EQUITY IN ACCESSING CAPITAL?

A: This entails all of us getting out of our comfort zone as COVID-19 has caused us to do. We must commit to improving the disparities in education, jobs, homeownership, healthcare, and the digital divide.

I believe the finance and banking industry will move toward embracing technology more, while continuing to maintain touch with customers. This will entail developing partnerships to enhance products and services to become more well-rounded to meet the expanded needs of customers.

We will only be able to achieve equity by embracing the data that demonstrates clearly that inequities exist. Secondly, we must take actions on these inequities by making them a part of our value system. Once we get beyond a “check the box” orientation on equity and behold it as a value, we will then see our region grow through economic development, inclusion, and most importantly, equity.

SANDRA PIERCE

SENIOR EXECUTIVE VICE PRESIDENT, PRIVATE BANK AND REGIONAL BANKING; DIRECTOR AND CHAIR OF MICHIGAN, HUNTINGTON

Q: WHAT ROLE WILL BIG DATA PLAY IN ADJUSTING TO CONSUMER DEMANDS AND FINANCIAL PRODUCT OFFERINGS?

A: Our greatest learnings are on the digital side, where there has been an expected increase in activity. We are largely witnessing reinforcement of what we already knew: simple transactions are increasingly moving online and the pandemic has accelerated that. We’re proud that our #1 rated app made it convenient for customers to conduct their transactions from their homes and we expect many of these new behaviors to continue.

At the same time, more complicated decisions still lead customers to want to interact with a banker. We have the #1 branch share in Michigan, and we are committed to our branches and in-person presence while also investing in tools and products that will help our customers. That’s why we are continuing to invest in technology, and innovations that will help our customers rebuild their financial lives. This includes an additional $150 million over the next three years in technology investments that we intend to accelerate given the COVID environment. •

THE FUTURE OF Workforce STRATEGIC PLANNING

The pandemic challenged the workforce in unprecedented ways, including the overall magnitude of its impact. It left no sector of the workforce unaffected. The crisis impacted the well-being and health of every single employee in some way, while also exposing systemic flaws and equity disparities at the workplace in a new light. In tumultuous times, employers are evaluating what workforce resiliency means and looking at how to strategically apply the longterm lessons brought on by the pandemic.

SUMREEN AHMAD

GLOBAL CHANGE MANAGEMENT LEAD, ACCENTURE

ORGANIZATIONS WITH INCLUSIVE CULTURES ARE1

2x

AS LIKELY TO MEET OR EXCEED FINANCIAL TARGETS

3x

AS LIKELY TO BE HIGH PERFORMING

6x

MORE LIKELY TO BE INNOVATIVE AND AGILE

8x

MORE LIKELY TO ACHIEVE BETTER BUSINESS OUTCOMES While remote working was already on the rise pre-pandemic, adoption of telecommuting accelerated in response to the pandemic - permanently altering the way we now understand how work can be performed. Looking ahead, strategic workforce planning will demand greater focus on organizations ability to support their employees to “work from anywhere, anytime” - built on a framework that offers both temporal and location flexibility.

To effectively transition to this future, organizations must adopt a coordinated strategy at all levels. This includes rapidly adopting enabling technology solutions to raise the remote flexibility of jobs, while addressing the increased security and privacy concerns that come from more people working digitally. Additionally, employers must be prepared to address intrinsic motivations, individual challenges and new opportunities, by creating the psychological safety that considers the ‘whole’ employee while building a culture of trust necessary for individuals to thrive.”

RACIAL EQUITY

DAVID FOLTYN

PARTNER, CHAIRMAN AND CHIEF EXECUTIVE OFFICER, HONIGMAN LLP

GENDER EQUITY

CAROLYN CASSIN

PRESIDENT AND CHIEF EXECUTIVE OFFICER, MICHIGAN WOMEN FORWARD

As we safely return to our offices, an issue that remains a priority for Honigman is our commitment to Diversity, Equity & Inclusion. Khalilah V. Spencer serves as Inclusion, Equity and Social Responsibility Partner and a partner in the Litigation Department of our Detroit office. Recently in Michigan Lawyers Weekly, she wrote that societal issues like educational inequity, economic disparities and implicit bias need to be addressed before any significant gains for diversity are visible. It will take all of us, collectively, to address these persistent racial inequities before the legal profession mirrors our diverse nation.

As leaders at Michigan’s largest law firm, we are strongly committed to doing our part to encourage and ensure equal voice, opportunity and legal representation for African American people and other people of color. Taking this stand, together, means valuing and insisting on diversity, inclusion and racial equity at Honigman and in our communities.” Gender equity and diversity results in increased profitability, loyal and satisfied employees, and better strategic decisions. Yet, 51 percent of the work force today is already dissatisfied with the current status of gender equality in the workplace and are willing to move to a company and a culture where they observe gender equity as an imperative. Women know that they make up over half the workforce in the U.S., but they do not see that reflected in management, executive positions, and board composition, but they note that some companies are making real progress, and everyone is watching.

Employers must begin to address these issues head on. Pay equity is something your company can begin to address as is providing flexible work time for women with children. Companies can implement policies that level the playing field for all women. Gender equity will not be achieved in a quarter or a year, but must start today.”

MENTAL HEALTH

ARASH JAVANBAKHT

DIRECTOR OF STRESS, TRAUMA, AND ANXIETY RESEARCH CLINIC, WAYNE STATE UNIVERSITY SCHOOL OF MEDICINE

Transition, lack of control, and uncertainty are three important factors leading to higher stress, and risk to mental health. The pandemic led to expedited and fast transition of workspace, style, and relationships to a totally different format. Workers had very limited control over the transitions, and tremendous uncertainty about the form of changes and their timeline.

The same factors will be involved in transition out of the pandemic, mostly to hybrid systems of work, but the details are still unclear to individual workers. Advanced informing about the planned stepwise transition and involving the workers in such decisions will help provide sense of control and reduce uncertainty.

We know from previous pandemics that the negative mental health impact lingers long after the pandemic is over. We need to expand available mental health services. The silver lining is that because of the pandemic, all these services are available via telemedicine, which eases access.” •