Banking will become an integral part of our everyday life and will be practically invisible

“If we want to think strategically, we should not copy solutions that have been in the market for ten or fifteen years. In the future, we will no longer have applications or Internet banking systems, we will talk to the bank through virtual AI assistants, which we will have in our phones or at home in the form of loudspeakers. At this point it is worth emphasizing that the digital revolution, which we so often talk about, is not carried out in isolation from people. What is more, it is people that we need to focus on today” - says Sonia Wędrychowicz in an interview with Marta Ossolińska.

Sonia Wędrychowicz - has more than 25 years of experience in banking. She rose up the ranks to become Deputy CEO of Citibank since joining back in 1994. Then she headed the Standard Chartered Bank in Malaysia, launched a digital bank (DBS Bank) in India and Indonesia, was responsible for the transformation of the retail bank in the JPMorgan Chase bank in New York. She currently works for McKinsey & Company, where she advises clients from the financial sector. In 2019, LinkedIn named her as one of the ten most influential people in the world in finance and economics. In her private life she is a wife and a mother of two as well as a kickboxing fan.

People say that the most difficult questions should be asked at the beginning, therefore I would like to ask: what will be the future of Polish banking?

Banking will become an integral part of our everyday life and it will be practically invisible, we will “experience banking” when the opportunity arises. A bold vision, but already implemented in certain industries, e.g. in applications used for ordering a taxi - we sit in a car, leave and pay automatically. The situation is similar in the case of self-service stores - we go into a store, pick the goods and... leave! Again, payment is automatic. And now let us imagine such a situation - we come into a restaurant where we often eat dinner - why do we need to give our credit card every time? They know us there, they know who we are. It would be enough for the card data to be safely stored in an application. Everything would be much easier - we come in, make an order, we don’t need to wait for the bill, which for me personally is always a difficult experience in a restaurant, because I hate waiting (laughing). Such a situation can also be replicated in hotels. Today we book hotels online, and we provide information about our passport or credit card. But when we arrive, we have to go through this procedure once again to get the key to the room. This situation could be solved differently. Imagine this: we go into a hotel, we have the “key” in our phone and simply open the door with it - a simplified way to check into a hotel.

How does this fit in with the reality of cooperative banks, for which the concept of building and maintaining relationships is as important as being modern? Are you saying “close your branches and focus on digitization” or “try to stand out and become exclusive bank boutiques”?

I do not think cooperative banks will disappear, on the contrary, I think that, like some of the smaller chain stores located “just around the corner”, they are built into the local community. It is hard to imagine that they will suddenly vanish. I come from a small town of Lubliniec (24 thousand inhabitants - editorial note). I was born there and spent the first twenty years of my life there, so I know the reality of the small town and cooperative banks very well. In the past, the shopping malls, which are simply a collection of many different shops in one place, were established – which did not mean giving up, for example, tailoring services. Simply, the place where these services are provided has changed and I think it will be similar in the case of banking services. I also greatly appreciate the concept of co-working space, where people work together. Such co-working places were initially used by start-ups but now more often more corporations are entering there. They want more contact with companies that can offer complementary solutions to their services. Soon this kind of space will become equally attractive for lawyers, accountanting firms and others who will provide services to the entire ecosystem operating in these places. I think that banks, in the future also cooperative banks, will become part of such an ecosystem of people who want to work together in a common space. This solution will allow much easier access to potential customers. Companies will have the opportunity to cooperate with a bank that will advise them. I think we should not get too attached to numbers in the context of the capacity of a branch. I think that combining physical space with virtual space is the right direction.

So how to combine the real world with the virtual world for the benefit of business and clients of the cooperative banking sector?

If we want to think strategically, we should not copy solutions that have been in the market for ten or fifteen years. In the future, we will no longer have applications or on-line systems, we will talk to the bank through virtual AI assistants, which we will have in our phones or at home in the form of loudspeakers. At this point it is worth emphasizing that the digital revolution, which is so often talked about, is not carried out in isolation from people - it is people that we need to focus on. As far as banks are concerned, there are two specific groups - customers and employees. First of all, let us take a look at banking customers - what actions should be taken, what products introduced and how to deliver them in the most convenient way to attract interest? An appropriate strategy and approach to customers will ultimately translate into value for shareholders and investors. However, for this process to happen, we need to empower our employees so they can respond to the needs of their customers in the most efficient way. Giving employees the ability to make decisions in response to customers’ needs is the human face of digital transformation. The aim is to ensure that customers receive the best possible value and quality of the services. I think this is particularly important in the case of cooperative banks, where people live in small communities where people know each other. Technology and everything related to it are only tools we use to provide the highest quality of service.

You are a person who is not afraid of the word “change” and perceives it as something positive. What would you say to people who are afraid of change, both in technology and in human resources management?

Fear of change is a natural, human reaction. When there is a change, we often see it as a threat to our comfort zone and the status quo in which we feel comfortable and safe, even if it is a change for the better. I personally experienced some important changes - the transition from the communist system to the market system - I have no doubt that it was a positive change, although it was not easy.

How should the leaders handle it in the best way?

First of all, you have to explain the change to the people. The lack of knowledge makes it a “fairy tale about a big bad wolf”, something that is difficult to comprehend, yet accept. Once employees understand the purpose of the change, we should explain their role and place in the process. Of course, people will start asking questions: “Will I be able to make it?” as some are at an age when digital platforms are seen as a big challenge. Then the next step is to tech them new skills. We must invest in their education and change not only the way they work, but also the way they think about work. Of course you can have knowledge and skills, but not necessarily the willingness to engage, so the next step is to motivate people to make them want to become part of the process of change – and this requires a very individual approach. In my career, I have repeatedly encouraged people to embrace change. This also included elderly people who admitted they were afraid that they would not be able to cope in the new reality. The argument of co-creating history for future generations may be a good way to engage people. Sometimes it may require a very individual approach, as people are more open and better understand specific examples. It is also important to trust the leader who communicates this change.

You are one of those people who quickly gain trust among employees. How do you do that?

It is certainly based on sincerity and authenticity - if we say something, we do it. The first time when our words are not translated into our actions, we will lose the trust of employees. If I say that I will always stand behind them, even if they make mistakes, because we will learn from those mistakes, then I keep my word. If employees notice that in the case of failure we look for the guilty ones and punish them for their mistakes instead of supporting them in a difficult situation as promised, they will lose all confidence in the leader. Creating a comfortable environment in which people knew they could feel safe, where I was not afraid to take responsibility for failures, and where I praised them for their successes, made my employees more creative, not afraid to take risks. This resulted in solutions and products that were much more innovative.

What shaped you as a leader ?

I believe I have been shaped by my parents, especially my father, who was an attorney. I saw how he treated his clients, because they often even came to our house, sometimes with difficult matters. What I admired about my father was his attitude - he was the same person for everyone and he treated every person with the same high respect. He wanted everyone to call him by his first name, instead of the still existing formula “Mr Counsellor”. Not everyone understood his openness. I admired the fact that he shortened the distance and made people feel comfortable when talking to him. He was my first real teacher of life. I have never talked to him about it, but I have observed his behavior with other people. I also had great teachers in primary and secondary school and very good bosses at the beginning of my career. However, I learned that some bosses can become your role models while the others show you the attitudes and behaviors that you would like to avoid.

You started your career working in a team. How did you approach difficult situations from as an individual contributor?

I am constantly learning and working in teams, always correcting employees who say they work for me. I always stress that I work with them for the benefit of our clients. I firmly believe that the manager is like a master, a person whose main goal is to take his students to the master’s level, not just to manage them. I do not like that word. I strive to create a working atmosphere in which we feel equal, respect each other’s individual skills, experiences and strengths and we act in a team as a whole. Such an approach is very helpful. If, on the other hand, the team does not get along, we should try and find out the reason for this - whether it is a matter of personal animosity or, for example, a clash of personalities Sometimes the differences between people are so big, e.g. in the way they work, that this translates into a lack of effective in teamwork. If we see that some people are dysfunctional, may be they are in the wrong place Some people are introverts and need more individual tasks to work effectively in a team. God relations within a team also exclude unhealthy competition or attempts to depreciate colleagues.

And what is your opinion on the issue, which has been raised quite often lately, that women collide with the so-called “glass ceiling” and the fact that their salaries are lower than those of men who perform the same functions in a company?

There was a time when I was responsible for more than five thousand people and I had a full insight into their earnings. I must tell you that I never saw men being paid more for the same work. As far as the issue of top positions is concerned, I think that women are often afraid to fight for them. I have experienced many situations in which I tried to find a person for a given position and spoke to an equally qualified woman and and a man. When I spoke to women they asked many questions e.g.: Do you think I am suitable for this position? Do you think I will cope? When I talked to men, I often heard: Don't you think that this position is too low for me? I have encountered such situations all over the world, both in Poland, Malaysia, Singapore and the United States. I think, to a large extent, this is because women think about how their careers will affect their family, children...

What kind of word of advice would you give to women like the ones from your story?

To believe in themselves - that is the most important thing. Personally, I have taken on challenges that were outside my comfort zone many times, I have taken on tasks in industries I did not know and I have always coped. Thanks to this, I have gained experience and a conviction that I am able to meet any challenge.

It is easy for you to say “believe in yourself, leave your comfort zone, overcome your barriers” because you have already reached a certain level. A person who is at the beginning of the road may find this too difficult to apply. So what smaller steps should she/he start with?

It is worth choosing projects that are outside our direct comfort zone. Personally I always gained the most when I faced new, different projects in my everyday duties, which was innovative. I remember that in the 1990s, my boss came to me and said: now you will be responsible for the Internet; I agreed and then I went to a colleague and asked him: what exactly is the Internet? I think that it is worth developing such an approach and undertaking tasks in which nobody wants to get involved, because they are new, we know little about them and we are afraid of potential failure. Challenges of this type enable us to stand out from the group. Even if a project fails, because we are not always going to be successful, we can learn new things, even when we make mistakes.

Although, as a rule, most people have a negative attitude towards the word failure, I hear that you are very positive about it...

Maybe because the number of my failures significantly exceeds the number of my successes, and at the same time because none of my successes would be possible if I did not draw conclusions from my failures (laughs). From the beginning of my career, I functioned in a frequently changing environment, at a time when the National Clearing House was being established, when we were just introducing payment cards or electronic banking into the Polish market. You can only imagine how many failures we suffered at that time. I was open to new things, I was not afraid to take risks, which always involve the possibility of failure. Failure is not the end of the world and a reason to depreciate our self- belief - it is a starting point for reflection and drawing conclusions. I do not remember all the mistakes I made, but I remember what I learned from them. I owe it to my first bosses that I am not afraid to talk about my failures, and I am even proud of the ones I have suffered. When I ask about this during job interviews, I sometimes hear from people with 25 years of experience that they have never failed. And I wonder how that is possible?

This interview will be published in our bimonthly magazine on the occasion of the 8th March (International Women’s Day). What would you like to wish to women working in banking on this occasion?

I wish them to believe in themselves and not to listen to people who undermine their morale and confidence. I have had many situations in my life when people around me wanted to diminish my self-esteem, my belief that I can succeed. We must remember that we are good and we are able to win in any situation, we just need to give ourselves the right to do so.