EVANSTON, Ill., July 24, 2003 (PRIMEZONE) -- Retail banking executives credit employee training and development for increased revenue, better customer service and other key benefits, according to a study that included interviews with more than 100 senior executives.
The study revealed, among other findings, that 82 percent of banking executives feel training has a moderate to major impact on customer satisfaction. On overall quality, 75 percent said training has a moderate to major impact, while 63 percent said training spurs revenue growth.
The Bank Administration Institute (BAI), a professional organization devoted to improving the performance of financial-services companies and individuals, led the study to survey 139 senior banking executives and compiled the results. The surveys and research were completed in the spring.
A white paper on the study, "The Performance Impact of Training and Development on Retail Banking," is available by e-mailing contact@cognitivearts.com.
CognitiveArts, one of the study's underwriters, is a leading designer and developer of learning solutions. The company's Financial Services Solutions Group has had a longstanding commitment to the financial-services industry, and has partnered with a number of major retail banks to increase individual and organizational performance.
BAI and CognitiveArts will present the study's results at a series of Executive Roundtable events on employee development and training in retail banking. For event information, visit www.bai.org/bottomlineimpact/.
Although it is widely recognized that learning and development play a role in the success of a financial institution, this study included statistical analysis to determine the link between specific business results such as revenue growth and retail banks' commitment to learning and development.
"The study shows us key areas where banking executives feel training has the most impact," said Abhas Kumar, vice president of CognitiveArts. "Understanding these high impact areas is key and the linchpin of our philosophy. Using a proven methodology to identify the mistakes employees make that have the most impact on the business, and delivering solutions to address those mistakes, provides a repeatable, focused approach to maximize the return on training investments."
James M. McNeil, executive director of delivery channels for BAI, said the results reveal key trends that struggling banks can learn from. "High-performing banks tend to be very good at not only recognizing the importance of training and development, but also at aligning training with corporate goals," McNeil said. "High performers also tend to manage their training budgets wisely, evaluate results through formal measurement programs and embrace technology."
Below are some of the study's key findings:
-- 81 percent of respondents felt training had a moderate to major
impact on overcoming the challenge of sales and marketing
initiatives.
-- 77 percent felt training had a moderate to major impact on
overcoming the challenges of customer service initiatives.
-- 68 percent felt training had a moderate to major impact on
productivity.
-- 66 percent felt training had a moderate to major impact on deposit
growth.
The research study also examined how much training retail banks conduct:
-- 86 percent of banks surveyed provide a minimum of 9 hours of
company-paid training per employee per year.
-- 78 percent of banks train at least 60 percent of their work force
each year.
About BAI
BAI is a leading professional organization devoted exclusively to improving the performance of financial services companies and individuals through research, information, education and training. To learn more about BAI, call (800) 224-9889 or (312) 683-2464, or visit www.bai.org.
About CognitiveArts
CognitiveArts is an Experience Learning Solutions Provider. Applying its proven methodology, CognitiveArts enables Global 2000 companies and institutions to achieve business results and organizational readiness by accelerating skills acquisition and expertise through the enterprise and beyond. Clients include Wal-Mart Stores Inc., The Walgreen Company, Harvard Business School Publishing, McKinsey & Company, KeyCorp, ExxonMobil, and the U.S. Department of Veterans Affairs. With more than a dozen years of experience and 250 projects successfully implemented, CognitiveArts has led the industry in the scientific understanding of how people learn, remember and reason and is considered visionary in the field of e-learning.
CognitiveArts is a division of NIIT Technologies, the IT services business of NIIT Limited, which provides solutions to customers in Asia Pacific, Europe, India, Japan and the United States. NIIT Technologies focuses on the finance, transportation and retail verticals. It follows global standards of software development processes, including an ISO 9001:2000 certification from BVQI, UK, and assessment at Level 5 of SEI-CMMi. NIIT's work with the ING group was recognized by the Financial Times publication, The Banker, in its 2001 annual survey, receiving the "Outsourcing Contract of the Year" award.
For more information on CognitiveArts, visit www.cognitivearts.com.