The banking industry is going through a major transformation. According to EY Global Banking Outlook 2014-15, the banking industry is being impacted by increasing regulatory pressures, changes in customer expectation and preferences, new technology and applications, disruptive competitors and adverse public relations / public scrutiny.
These forces of change are forcing banks to transform their business models, become more customer-centric, reorganize operations to minimize compliance and regulatory issues, and overhaul their IT infrastructure to support digital channels.
In order to deal with these changes, banks have to earnestly realign their training programs to ensure the success of their response strategies. Here are the broad areas where changes need to happen from a training perspective:
1. The move from a product-centric business model to a customer-centric business model throws open major skill gaps in teams. All of a sudden, bank employees are not just selling a product but are expected to figure out how a customer may leverage a portfolio of products or services. The concept of mapping customer moment to training needs takes center-stage in addition to proficiency in a broad range of products and services.
2. Increased regulatory oversight and public scrutiny in how banks operate is forcing banks to reconsider their product portfolio or even divest from certain markets or businesses. However, the biggest training gap in the compliance realm is the ability for bank employees to go beyond ticking boxes and understand the true spirit of the regulation. Compliance training should be elevated to help employees manage gray areas.
3. The IT transformation that banks are undertaking by leveraging Big Data and mobile banking solutions are impacting legacy back-end systems and the associated teams. There is a major skill gap in these emerging technology areas.
4. Small banks are looking for scale and large banks are looking for specialized capabilities, resulting in increased mergers and acquisition activities. This presents training challenges associated with integration and associated role changes.