Transforming Banking Through Strategic Shared Services & Innovation

Rumana is aglobal transformation leaderwith an extensive experience of over 20 years across banking, telco, IT, and people industries. She is also well versed in areas of operational excellence, digitization, lean agile methodologies, and shared services. Working at RAKBANK, Rumana has been in UAE for more than a decade, and has previously worked at Infosys and Onmobil.

In a recent conversation with the Global Woman Leader Magazine. Rumana talks about her collaborative leadership styles in leading cross-functional teams while holding the ability to translate complex business operations, regulatory compliance concepts into tangible action plans. Emphasising on traditional banking models, she talks about collaboratively working across employee engagement programs, supporting women leadership and women development.

Read the article to know more.

In today’s volatile banking landscapewhat paradoxes do leaders face? How can they strategically manoeuvre through these complexities to drive transformative change?

It is crucial to be aware of the changing dynamics of regulators. Regulators are evolving globally, especially in banking, which is governed by central banks and international laws. It’s essential to have strong governance from a compliance and risk perspective. Banks should invest heavily in these areas. While innovation and digitization are important, governance and risk management must be strengthened. This requires the right knowledge base and up-to-date documentation, not just for compliance but to stay relevant.

Banking today is not limited to regions or countries; it’s about competing globally. The industry is no longer confined to traditional banking but now competes with FinTech, which has disrupted the space. Compliance and risk management are the strongest pillars banks must prioritize to navigate these challenges.

As we witness fintech disrupt traditional banking models, what radical shifts in shared services and strategic outsourcing do you foresee?

Every bank and organization typically adopts shared services to enhance efficiencies and achieve organizational goals. Shared services have two aspects. The first is body shopping, where organizations perform a simple lift-and-shift operation to gain immediate cost savings. The second involves comprehensive transformation, which requires a clear strategy to be effective. Although 'transformation' is often overused, shared services play a crucial role in driving process enhancement and transforming key areas. However, it’s equally important to invest adequately and not solely rely on what has been offshored or outsourced to shared services.

What are some unconventional methods you’ve implemented to harmonize differing cultural dynamics within teams while driving a unified strategic vision?

Working in Singapore and the UAE has highlighted the distinct differences between the two environments. Prior to Singapore, I also worked in Europe. These experiences taught me the importance of prioritizing perspective when collaborating with individuals from various backgrounds and cultures. Even within the same country, people's backgrounds can vary significantly. For instance, India itself is highly dynamic and diverse.

One critical aspect is fostering non-hierarchical communication. To break cultural barriers in diverse organizations, communication should be neutral rather than hierarchy driven. Poorly managed communication can significantly impact an organization.

In multicultural workplaces, such as the UAE—where over 80% of the population comprises expatriates—leadership styles play a pivotal role. Leaders must adapt their approaches to blend effectively with different cultures. For instance, in individualist cultures, it's easier to empower vocal individuals, but mixed cultures require a more nuanced approach.

This requires innovative solutions to minimize team friction and create an environment of mutual respect. Understanding diverse perspectives and prioritizing high work ethics, regardless of background, is essential. Leaders should strive to understand the diverse origins of their team members. At the core, we are all human, and it’s vital to ensure people feel comfortable. Effective leadership emphasizes tailored work styles, schedules, and communication to thrive in a multicultural setting.

In an era where traditional KPIs may no longer suffice, what groundbreaking metrics have you devised for gauging success in strategic outsourcing initiatives beyond financial performance?

In strategic outsourcing, beyond financial benefits, it is a relationship-driven business. It is essential to ensure that the organization to which you outsource—whether your own captive or a third party—feels a strong sense of belonging. This can be achieved by sharing a common vision and aligning goals. A strategic vision must extend beyond financial aspects; relationships should be long-term to maximize multi-dimensional benefits.

In the shared services and outsourcing industry, failures often arise when organizations operate as separate entities. Since we are working with people, it is crucial for individuals on the ground to feel connected to the brand they support. If they lack a sense of belonging or don’t see senior leadership involvement, it hinders their ability to contribute fully. Leadership presence, such as through town halls or direct engagement, significantly boosts morale and productivity. It also fosters innovation, as employees feel inspired to ideate and contribute.

Investing in these softer aspects often yields returns far beyond financial gains or cost arbitrage. These efforts enhance collaboration, trust, and long-term success.

How can leaders leverage insights from outside the banking sector to innovate within shared services and enhance business processes?

Banks no longer need to focus on leveraging fintechs they are already deeply engaged with them today. Many of the big consulting firms and advisors have been facilitating cross-industry practice sharing, which is now standard. Based on my experience, when implementing transformative ideas or solutions, we don't just compare ourselves to banks but also look at innovations in other industries.

There has also been a noticeable shift in banking talent, with leaders increasingly coming from diverse industries such as media, telecommunications, and IT. This brings fresh perspectives and forward-looking views. Banks are consciously investing in their people, ensuring that 10-20 percent of their workforce comes from non-banking backgrounds to encourage innovative thinking.

How should leaders address the ethical implications of AI’s use in shared services, ensuring that innovations enhance customer trust and comply with regulatory standards?

AI is a human invention, and industry leaders must first understand its application. For instance, when I contact a service center and realize I’m speaking to a bot, I can recognize it due to my experience with RPA and automation. Before leveraging AI, it’s crucial to optimize existing processes rather than relying solely on bots or AI. Shared services, being people-driven, require us to remain relevant and adaptable to changes.

AI is only as effective as the human training behind it. Staying relevant, embracing new practices, and adapting quickly are now essential. Loyalty alone doesn’t suffice anymore. For industry leaders, customer experience must be the top priority. AI should not replace humans but enhance service quality. Monitoring and constantly improving AI implementations, while blending them with the human element, ensures high service standards. The human touch remains irreplaceable.

Messages To Readers

My message is that women should be fearless and always give their best effort. There are no jobs defined as 'women-only' or 'men-only'; every job is an opportunity for anyone. My advice is to give 100% to everything you do, and the results will speak for themselves.