Industry Deep Dive: Authentic Communication and Culture Change in Financial Services
In the financial services sector, the imperative for digital transformation is clear—but the path is uniquely challenging. Legacy banks and insurers face a complex web of regulatory pressures, entrenched systems, and a workforce steeped in traditional ways of working. Yet, as new consumer demands and agile fintech competitors reshape the market, authentic communication and intentional culture change have become essential levers for success. At Publicis Sapient, our experience guiding financial institutions through transformation has revealed that the human side of change is as critical as any technology or process.
The Cultural Challenge: More Than Technology
For established financial services organizations, digital transformation is not just about upgrading technology. It’s about fundamentally rethinking how the organization operates, collaborates, and serves customers. Many legacy institutions have maintained the same processes and mindsets for decades, making rapid innovation difficult. The challenge is compounded by regulatory scrutiny and the need to maintain trust and stability while introducing new ways of working.
Research shows that more than 75% of financial services leaders recognize the need to upskill their workforce, yet nearly half struggle to utilize new technologies effectively. This skills gap is not just technical—it’s cultural. As Matt Hopgood, Global Vice President of Strategy and Consulting at Publicis Sapient, notes, “The cultural challenge that banks are going through is that they're having to try to pivot back to having a much more customer-centric focus and value proposition led from the customer perspective. And that is an uncomfortable cultural shift that's happening, while also having to digitize and react to macroeconomic changes.”
Authentic Communication: The Foundation of Change
Authentic communication is the catalyst for meaningful culture change. In financial services, where risk aversion and hierarchical structures are common, clear and honest dialogue is essential to build trust and align the organization around a shared vision. Successful leaders don’t just talk about change—they model it. They paint a vivid picture of the future, clarify what’s expected of every employee, and remain relentlessly focused on the vision, even amid headwinds.
Change champions—individuals at all levels who embody the new values and behaviors—play a vital role. By reinforcing core values through action and recognizing those who embrace change, organizations can create new stories that unite the workforce. Communication must be a two-way street: employees should be invited to share feedback throughout the transformation journey, enabling the organization to adapt and learn from both successes and setbacks.
Setting a Cultural Baseline: Understanding Your People
Before launching large-scale change initiatives, it’s crucial to understand the existing culture. Financial services organizations benefit from setting a cultural baseline—using ethnographic research, feedback tools, and stakeholder interviews to identify core values, potential roadblocks, and readiness for change. For example, a UK-based financial institution conducted a study to uncover whether its culture was more relationship-focused or delivery-focused. This insight allowed leadership to tailor change programs that respected the organization’s legacy while addressing barriers to new ways of working.
Overcoming Resistance: Engaging Employees in the Journey
Resistance to change is natural, especially in environments where stability and routine have long been prized. The key is to involve employees from the outset—not just as recipients of change, but as co-creators. As Christian White, Senior Manager of OCM & Project Management at Publicis Sapient, explains, “Implementing change entails employees being a part of the transformation from the onset, while installing change tends to lead to disenchanted employees.”
Financial services organizations should:
- Frame change in context: Help employees understand how their roles contribute to transformation and how new behaviors drive business outcomes.
- Personalize communication: Tailor messages to different generations and roles, ensuring everyone feels heard and valued.
- Provide ongoing support: Offer training, mentorship, and digital tools that make new ways of working accessible and rewarding.
Aligning Culture with Digital Transformation Goals
True transformation in financial services requires integrating culture change with process and technology from the start. This means:
- Role modeling at every level: Leaders and change champions must consistently demonstrate the desired behaviors.
- Celebrating quick wins: Early successes build momentum and show tangible progress.
- Maintaining transparency: Share both achievements and lessons learned to foster trust and continuous improvement.
- Investing in upskilling: Address the skills gap with targeted learning and development, ensuring employees are equipped for digital roles.
Real-World Impact: Lessons from the Field
Publicis Sapient has partnered with leading financial institutions to drive holistic transformation. In one case, a major European bank restructured its digital division into smaller, cross-functional teams, supported by agile coaches and change champions. This approach broke down silos, accelerated decision-making, and fostered a culture of experimentation. The result: faster time-to-market, improved quality, and higher employee satisfaction.
Another example saw a financial services organization use feedback tools and cultural assessments to identify resistance points. By addressing these head-on—with authentic communication, tailored training, and visible leadership support—the organization achieved greater alignment and smoother adoption of new digital processes.
Best Practices for Financial Services Leaders
- Start with understanding: Use research and feedback to map your current culture and identify barriers.
- Engage leadership early: Ensure C-level buy-in and visible sponsorship throughout the journey.
- Empower change champions: Identify and support individuals who can model and spread new behaviors.
- Communicate authentically: Be transparent about challenges, progress, and expectations.
- Involve employees: Make change a participatory process, inviting feedback and co-creation.
- Align culture and process: Integrate culture change with new operating models and technology from the outset.
- Measure and adapt: Use data and feedback to track progress and refine your approach.
The Path Forward
In a sector defined by legacy, regulation, and trust, authentic communication and culture change are not optional—they are the foundation of successful digital transformation. By understanding their people, engaging employees at every stage, and aligning culture with business goals, financial services organizations can overcome resistance, unlock innovation, and build a workforce ready for the future.
At Publicis Sapient, we help financial institutions navigate this journey with proven frameworks, deep industry expertise, and a relentless focus on people. If you’re ready to drive meaningful change in your organization, let’s start the conversation.