Yet, only one-third of Millennials believe employees are using their skills well, and 42% say they are likely to leave because they are not learning fast enough. We must reinvent and modernise the existing model of human capital investment if we are to recruit, develop and retain 1/3  BIS central bankers' speeches  the very best of talent. Prioritising and channelling greater resources to the talent development function are important first steps. Currently, the average annual training expenditure for the banking industry is around 3% of employee payroll, in contrast with international comparisons of around 4% to 4.5%. The Malaysian banking industry’s allocation for training and development is still below global benchmarks. It is, however, not enough to solely focus on outright spending. Equally important is the quality of training investments. In my mind, this begins with transforming existing corporate learning systems to enable continuous lifelong learning and ongoing skill acquisition. The banking sector ought to have an “on demand, ever ready” learning system that empowers talent to take ownership of selfdevelopment. This means diversifying from the traditional form of structured learning that only takes place at rigid fixed intervals. Aspiring talent ought to be empowered to personalise learning content according to individual preference and pace. Indeed, knowledge should be accessible to all who seek learning. Learning should take place at any time. Learning should be democratised. The rise of innovative digital content providers such as Coursera, Codecademy and edX has further increased the viability and attractiveness of an “on demand, ever ready” learning system.

Today, we find ourselves at the centre of a digital revolution, perhaps the most significant breakthrough in financial services of our time. Change is upon us. The tsunami of digital technology will forever change our banking landscape. Yet, like Newton’s observation centuries ago, the path of embracing change is fraught with resistance – or, as Newton elegantly called it, inertia. In the words of the renowned scientist, this power of resisting is one in which every object endeavours to “preserve its present state”. At its core is a realisation that, individually and institutionally, we are not inherently calibrated for change. In fact, we instinctively resist change, whether intentionally or passively. Change doesn’t feel natural, even when it is positive or unavoidable. While the expectation of disruption is not new to us, the greater issue of interest to banking leaders today relates to our readiness in navigating changes. We must learn to break down inertia within our institutions. I will elaborate. Let me contextualise this subject from two sources of corporate inertia, which I think are critical to the future of the banking system: i. Human capital investment; and ii. Forward looking leadership. Human capital investment requires a new model: Learning that adapts and is continuous The approach towards talent development and career learning is rapidly shifting. Traditional learning systems are no longer sufficient. Data from a recent study revealed that the “ability to learn and progress” is the principal driver of a company’s employment brand among Millennials today.