“Working to become a more skill-based organisation”

For Standard Chartered, India is not just a very profitable franchise; it is the third-largest contributor to the bank’s operating income. It’s also where a lot of incubation of innovative ideas happens and these innovations are not just in people’s practices, but also with customers, products, and sustainable finance. In an interview with Business Today, 46-year-old Tanuj Kapilashrami, Chief Strategy & Talent Officer at Standard Chartered, says the unique and special aspect of the India franchise lies in its soft power. Edited excerpts:

Does Gen AI have the potential to disrupt the banking industry?

Banking has always been at the forefront of technology, disrupting business and work models. This revolution, especially with Gen AI, is quite special because it democratises access to technology. It allows individuals to augment their productivity, efficiency, and innovative thinking without requiring deep technical expertise, which is pretty significant.

Cynics say we have seen disruptions like this before with the advent of the internet and computers.

The difference with Gen AI is that the disruption is happening not just at the manual job level but at the entry level of high-skilled jobs. Earlier, technological disruptions primarily affected manual jobs, but now we are seeing a disruption in high-skilled jobs, which has major implications for the banking industry and services broadly. Our perspective is that as Gen AI advances, it will bring a compelling story of increased productivity.

We believe these technologies can augment human capabilities, creating a ‘human-plus’ model. This model will enhance productivity and efficiency while driving greater innovation. As machines get better at being machines, humans are going to get better at being humans.

How is Gen AI impacting the operating model?

The gap between Gen AI’s potential and its reality will be the adoption gap. How do businesses adopt this technology? To me, that adoption depends on three things: culture, operating model, and skills. First, it’s about culture. Do you have a culture in the company that can disrupt the learning mindset, and curiosity? Second, it’s about the operating model. This means moving away from a very hierarchical way of structuring companies to a much more agile one. Third, it’s about skills. How quickly can your workforce upskill and reskill to make the best use of this technology? We can keep discussing Gen AI’s potential, but if we don’t address the adoption gap in the context of culture, operating model, and skills, businesses will struggle to maximise this potential.

Your thoughts on the relevance of current organisational structures in the age of Gen AI?

My strong view is that the way most organisations are structured is actually a product of the second industrial revolution. What is happening right now, I believe, is a fourth industrial revolution, and it’s happening on a massive scale. Businesses will have to ask themselves whether the operating model that helped them respond to the second industrial revolution will continue to be relevant.

We at StanChart are doing a significant amount of work to become a much more skill-based organisation. So, how do companies and societies develop an operating model where people’s skills can flow seamlessly to the work being done? I think this is going to be a great opportunity.

What are the new skills identified by the bank?

The focus on technical skills is definitely important. Data, digital, and sustainability are huge areas of strategic focus for us as a bank. Sustainable finance, especially in a market like India, presents a massive opportunity. It’s one of the biggest markets for us in sustainable finance globally. Therefore, we are heavily investing in upskilling our workforce in technical skills like data, digital, and sustainable finance. However, while tech skills are crucial, human-centric skills are also important.

Curiosity, the types of questions you ask algorithms, understanding large language models, inclusive leadership, and assessing risk in the new technological landscape are all important. We are emphasising future-focussed skills that combine both technical and human-centric aspects. And to make the most of this augmented model of humans plus AI, it has to be a combination of both technical and human-centric skills.

What about the participation of women in new skill areas?

This is an area of deep conversation within the company. A few years ago, there was significant discussion at the industry level about the lack of women in science, technology, engineering, and mathematics (STEM). I believe data suggests that this problem is at risk of being exacerbated.

If you look at Gen AI and the jobs created therein, there are not enough women entering these fields. Our focus is to upskill more women in areas of future focus and opportunities.

We have programmes specifically for women in cybersecurity, where we run special initiatives to upskill women. We also have women in tech incubators operating in close to a dozen markets, aimed at increasing women’s participation.

All the data suggest that women’s participation could worsen as new areas of work emerge. However, I think businesses have a real opportunity and role to play in bridging that gap.

@anandadhikari