Why do banks need a BFSI LMS?
The world has changed dramatically in the past with new technologies coming to the fore. The service industry has indeed seen a boom, but there are so many complexities also one of which is intense competition.
How can a BFSI LMS help bank employees?
This is true in the case of the financial sector. Banks have to make sure that customers get a prompt response when they ask questions from their executives whether on phone or in person. The banking executives can hence take the help of chatbots who have been programmed to answer the common questions posed by customers. The banking executive can make sure that they ask the chatbots about the perplexing questions asked by customers and using the keyword of questions, these bots respond within seconds.
Apart from chatbots, many new technologies are getting used by banks, including a BFSI LMS.
This is because such LMS can help companies train employees effectively about new compliance laws. There can be huge consequences for defaulting banks. In case they are unable to follow a compliance law, a bank may have to shut down. These are the new laws due to which the implementation of a BFSI LMS has become necessary:
- New Banking laws in the US:
Computer-Security Incident Notification Requirements for Banking Organizations and Their Bank Service Providers
Cybersecurity is one of the critical concerns of banks, especially since there has been digitalization of their services to please the customers. Although services like Net Banking have been introduced, there is a need for a lot of security so that no data breaches occur through the bank’s server. In January 2021, the Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC) proposed a new rule as per which banks are supposed to inform the OCC within a maximum of 36 hours if they believe that a cyber attack(“notification incident”) has happened. This kind of communication can be in verbal or written form also. A notification incident is defined as something that can stop the banking operations or the provision of banking services and goods.
Apart from that, if there is a cyber attack on a bank service provider, which could ensure that its services to the bank are going to be affected for four hours, then it’s his job to inform at least two persons at every bank.
- Corporate Transparency Act:
There is also an imposition of anti-money laundering laws known as the Corporate Transparency Act. As per it, the financial institutions if they have a business customer who opens accounts with them, then they are supposed to get all his details. Business customers often open accounts with banks to conduct a transaction on behalf of legal entities owned by them. So, such business customers known as beneficial owners in legal terms are defined as someone who has ownership rights of 25% in an entity or has major control. Such an entity is defined as Limited Liability Companies and Corporations.
So banks are supposed to train their front-line staff about all such new regulations through a BFSI LMS.
- Other advantages of a BFSI LMS:
A BFSI LMS ensures that the banks can also monitor how well the learners are reacting to it. They can allow more participation rates for employees because after going through each nugget, they are sent a survey in which they can provide feedback. The learners can also be checked for their gained knowledge through an assessment. Sometimes, the internet connection is not steady in some branches of a bank due to which the BFSI LMS must be accessed offline.
So, this is how a BFSI LMS can help banks in updating their employees with the latest compliance laws.