As learning institutions of all kinds and sizes dismiss their charges for the summer, I am sure that the last thing on any student’s mind is undertaking any kind of learning. Unfortunately in the real world, training and learning are on the agenda for many of the nation’s rising number of unemployed, who are looking to retrain in order to find employment in various employment sectors. Indeed, according to the Office for National Statistics (ONS), the number of jobless rose to 2.38m in the three months to the end of May, the worst figure since 1995. Some economists say that the number of unemployed people is expected to peak at around 3m during the first half of 2010.
For many financial services firms, especially those currently treading the tightrope in terms of survival, training and development is sometimes far from the forefront of their minds as they continue to battle market conditions. However, during a downturn any carefully assessed investment that can enhance the potential of a business can really go a long way to fulfilling future prosperity. Investment in staff development is certainly one way of investing in the future of a business and thanks to technological enhancements this investment does not have be anywhere near as costly as firms may initially think.
There has been a dramatic increase in the quantity and quality of technology and e-commerce driven solutions available to the financial services sector. While this quality has increased, financial restrictions have meant that these solutions have also had to become even more cost effective. Training and development solutions, as with any other business expense, have to be delivered at the most appropriate level, in terms of cost and time, to ensure the maximum return is achieved.
Whether established internally or brought in externally, there are flexible solutions available. Some training can be conducted in the workplace, other group sessions often take place in a class room environment or there is often the option of e-learning.
In terms of financial services there is often a tick box mentality attached to most areas in the learning of regulatory requirements. The use of technology however, can ultimately raise the bar in helping the relevant parties in getting up to speed with these initiatives and requirements. It can also help form a greater understanding of practical scenarios to aid performance both in how individual businesses work and from a regulatory perspective.
Immersion learning is certainly one way in which technology can provide an engaging and exciting yet realistic simulation to communicate a range of FSA principles by stepping outside of the textbook to fuel the interest of all learners. Indeed, by adapting a gaming mentality, immersion learning can provide learning solutions for all firms who are serious about regulatory requirements and wish to ensure all their employees understand their personal responsibilities.
The innovation behind immersion learning is to turn what could be perceived as a dry subject matter into an array of regulatory training programmes that genuinely engage and empower their audience. Game play and simulations are fast becoming viewed as the most powerful tools to engage audiences and, here at The Consulting Consortium, we have developed a range of games which will challenge staff to think, react and understanding statutory financial services material.
A good level of training should provide clear goals with lucid parameters within which their objectives can be achieved. Game playing scenarios can provide a competitive problem solving environment which tests the trainee’s skills and knowledge while providing continuous feedback about their performance.
Current training solutions available on the market include anti-money laundering, data security, and Treating Customers Fairly (TCF). We also have a diversity game, which is in the final throws of development, that will teach the learner all about diversity and inclusion skills. The storyline is designed to engage learners on an emotional and action level to help them understand that there is a business case for diversity and inclusion. The ultimate goal is to increase personal diversity awareness and increase inclusive behaviours.
Delving deeper into other topic areas, the first specific training solution to look at surrounds the FSA’s TCF principles. The TCF initiative has been driven forward by the FSA over the past seven and a half years, with the ultimate goal of ensuring that firms are placing customers at the heart of their individual businesses. This, in turn, is expected to increase consumer confidence in the financial services industry, an aim not too dissimilar to that of the Retail Distribution Review (RDR).
The original concept of Treating Customers Fairly was initially met with a somewhat quizzical response by many. The immediate reply of ‘we already do that’ was heard from advisers all over the country, and while some of these cries were justified, most were not. To simplify the initiative, the FSA designed a set of six consumer outcomes to help make sure that the principle of TCF could be fully understood by financial services providers and be translated into practical terms. The regulator has continually underlined the importance of this initiative and there is no getting away from this underlying belief. Companies are also raising their awareness and now increasingly embracing greater TCF standards.
Our game takes players through six different outcomes which are directly based upon the FSA’s TCF requirements. Participants play roles in six different scenarios. They might be a senior manager, tasked with interviewing department heads to see if TCF culture has been embedded into their area of responsibility. Or, they can also put themselves in the role of an adviser who is presented with a couple who need mortgage products and investment advice.
Whichever option is chosen, the player begins to understand the six outcomes and they will learn by doing so in a no-risk environment. A comprehensive training solution will help demonstrate to customers and the regulator just how serious a company is in making sure that TCF is not something just owned by the compliance function but how it can embedded into the whole business.
Another area of merit is data security. We have developed a game which brings home the importance of data security, where the learner takes on the role of an external auditor who has been tasked with reviewing a fictional firm’s data security compliance. The game starts outside the firm’s offices and the learner is taken on a journey through the building where they have to correctly identify each and every potential data security breach.
The use of gaming technology has evolved greatly from the days of Space Invaders and the frantic tapping of the arrow keys on the keyboard. The average age of a person who engages in gaming has now risen to the mid 30s. Growing up with computer games means that ‘more mature’ people are far more comfortable with delving into the world of virtual reality and can realise the benefits of such innovations as immersion learning. Compared to more conventional e-learning – which has an 80% non-completion rate, those undertaking immersion learning, on average, play each simulation 4.5 times therefore rapidly increasing the learning capacity and fun aspect.
So while students of all ages enjoy their summer, for financial services firms that have to battle on regardless, it is important to remember that there are more effective and cost effective alternative learning measures available, and believe it or not, some of which are even fun. n
Joanne Smith is chief executive & creative officer at The Consulting Consortium
