The Problem: Erosion of Consumer Trust
In banking, the need for ethical bankers who have a commitment to professionalism is rising in the wake of the Royal Commission Report. Banking, already taking on challenges from without due to the rise of fintech and digital-only options, also faced a challenge from within in the form of a workforce unsure how to regain consumers' trust.
The dwindling of confidence in banking is one of the biggest problems currently facing financial institutions. How can you reset the values of your organisation and prepare the next generations of leaders for a customer-centric future?
The Answer: L&D Investment
McKinsey’s “Elevation of Learning and Development” presentation noted that companies making investments in the next generation of leaders are seeing impressive returns. More specifically, companies with a focus on developing leaders during significant transformations are 2.4 times more likely to hit their performance targets.
According to Deloitte's "Learning in the flow of life" 2019 Global Human Capital Trends" report, 86% of respondents to the global survey stated that a top priority was to improve learning and development (L&D), but only 10% felt they were ready for the task.
By finding avenues to train and develop banking talent, your institution can reap the benefits of a workforce in tune with the current expectations placed on banks and bankers by the public, and help restore consumer confidence while creating new lines of products and services to meet increasing demand.
Benefits of a robust L&D program for banks
Providing access to L&D opportunities provides benefits on many levels, and can set your institution apart from the competition.
Talent attraction and retention
Banks that foster an environment in which learning and development are valued are often seen as preferable to ones that don’t from the perspective of a potential employee. The shift in L&D for banking objectives from merely improving productivity to elevating the profession and enhancing employability can help you attract and retain the best and brightest in the profession.
In contrast to the old school of banking professionals who assumed they would choose an institution and work there for a lifetime, up-and-coming bankers now feel more in charge of their personal and professional growth and development. They look for opportunities for learning and development when analysing an organization.
Elevate L&D
An L&D focus on developing people capabilities provides the opportunity to also instill professionalism and ethics, both of which are vital to the banking sector as a whole. By elevating your L&D approach, you can also elevate the industry.
Create a values-based culture
As the banking workforce becomes increasingly virtual and globally dispersed, L&D can help you build a values-based culture and a sense of community. You'll be able to attract and support employees who are looking for a stable, progressive workplace that has an eye for sustainability and contributes to the welfare of society.
Build your reputation
A bank’s reputation is one of its most important assets: It conveys a wealth of information about your success in the market, financial strengths, position in the industry and breadth of products and services. Investments in L&D can help to enhance your bank’s reputation and communicate a strong employer value proposition.
Motivate and engage bankers
A commitment to L&D provides bankers with opportunities to learn and develop new competencies. If your highly engaged employees are continually challenged and given access to the opportunity to develop new skills and grow within their chosen career path, they can be properly energized by new opportunities at work and remain more satisfied with their current organization.
The L&D Function in Times of Transition
It is undeniable that the banking industry is in a time of change and transformation. While this poses many challenges to leaders, it also provides vast opportunities to make necessary changes that can drive the industry forward. However, L&D must be solidly aligned with company values and business goals to realize its full potential.
According to the McKinsey presentation, while all business leaders surveyed agreed that L&D must align with their organisation’s overall priorities, only 40 percent say that their learning strategy is aligned with business goals. This leaves 6 out of 10 institutions adrift, with their learning initiatives disconnected from their strategic objectives.
Alignment between L&D and business strategy, therefore, is critical to success. Any learning strategy instituted should seek to support professional development and build capabilities, while enhancing company culture and encouraging employees to live the institution’s values.
If a key strategy is digital transformation, L&D should focus on building the necessary people capabilities to make that possible. If risk mitigation is the current priority, L&D can be employed to raise the bar for ethics and professionalism, ensuring banker behaviours are aligned with the best interests of the customer at all times.
For a workforce in transition, L&D can provide stability, focus and direction, preventing employee churn and providing a framework for employee engagement. A course that imbues a sense of personal responsibility and professional pride with a solid grounding in banking best practices can help achieve these goals.
Offering the Chartered Banker Course
By making FINSIA’s Chartered Banker course available to banking employees, financial institutions can support an L&D initiative that combines additional training in basic and advanced banking principles with a solid grounding in ethics and professionalism.
Bankers who complete the course become valuable assets in the pursuit of restored consumer trust in the industry, and can help elevate banking to new heights of professionalism and ethical behaviours.
