Tag: finance elearning

07 Jan 2022
financial wellness

Is elearning important for the financial wellness of employees? 

Financial wellness has become a protocol for employees now because when they have stress due to money, it can affect their mental and physical health.

This kind of wellness means having no worries caused due to lack of money.

Hence, employees have to take control of their expenses to ensure this kind of wellness.

Moreover, the companies can encourage employees to save money for the latter’s betterment. It’s because when employees have control over their expenditures, they are not stressed about finances.

Financial wellness is crucial for companies because not having the right kind of cash can impact employees. They can find it tough to concentrate on work and lose their productivity.

They can feel more motivated to perform when they have stable finances, which are possible with better finance management. Employees have complained in the past that lack of proper finances causes sleep deprivation, which is detrimental for a company. In a research done by the DNA of Financial Wellbeing including 750 employers and 11,000 employees of UK, it was found that employees are worried about their retirement finances. This survey concluded that employers are losing a lot of money, i.e. approximately 15.2 Billion Euros because employees stay absent from work due to their financial concerns and even change jobs.

Every year, employees take 2.5 days off due to their financial problems in the UK. Here is how employers can help employees manage their expenses:

Providing them retail vouchers

The employees can be given discounted vouchers for shopping and groceries. This helps them indulge in their tastes too without going overboard. It’s because millennials want to party harder apart from working, too. The employees should know how to use these discount vouchers. Companies can ensure that money is deducted from their salaries in return for these vouchers but ensure that the employees get to shop from the brand of their choice. The HR’s can maintain a list of which is an employee’s favorite shopping brand for retail and groceries.

A concierge service is an important part of the hotel industry now because guests can get recommendations about which nightspots to visit etc. Similarly, you can make sure that your employees get such services also, so they can be guided about which discount vouchers to use and when. For example, if you have given ticketing discounts to employees, they should know when to avail of the flight because such offers are time sensitive and expire. Even hotel discounts have the same problem.

Helping them meet fitness targets

Employers can also help their employees maintain their fitness goals in the New Year. They can ensure that the employees have access to discount coupons of fitness portals so that they can get gym memberships at low rates. They can also opt for sports goods ordering at cheap rates through such portals.

Advising them about financial security

The employees have to be advised about financial security because unexpected events can happen at any time. There can be a medical emergency that can delete all their savings. Hence, it’s important that they have savings so that they are not without any resources on a rainy day. With proper financial aid such as insurance policies, employees can have peace of mind knowing that they won’t have to ask for help in case of emergencies.

Providing them with salary sacrifice options

Employees can also opt for salary sacrifice, which is a popular scheme in the UK. Although most of the on cash benefits are no longer exempt from tax, the employees can still get benefits such as child care through a salary sacrifice scheme. A salary sacrifice is when an employee agrees to swap some of his cash pay with a non-cash benefit and be exempt from tax payments on the latter. An employer has to ask the employee for such an arrangement by including it in the employment contract.

Hence, employees can make sure that they give up on some of their cash salaries to make payments for workplace nurseries and childcare. As per the salary sacrifice scheme, the employees can get 2 Euros from the government for every 8 euros they submit into the childcare account, which has to be opened up at on the gov.co.uk website. But to be exempted from tax, make sure that your childcare provider has signed up with the Tax-Free Childcare scheme. So they not only get these 8 Euros exempted from tax, but they also get an extra 2 Euros. The employees can get the amount of up to 2000 Euros per year. So employees can get help from such a scheme because they can avail child care expenses through such child care vouchers such as arranging home care workers for them.

They can also swap some of their cash salaries for using a cycle to commute to work. So this is an excellent way for employees to cut down on their taxes. But, when situations change and employees don’t want any non-cash benefits such as childcare vouchers because they might be working from home due to the pandemic, they can ask their employer to cut back the salary sacrifice and receive the salary in cash.

Employees also feel happy when they realize that the employer is concerned about their financial well-being.

Can e-learning help?

Employers have to help employees manage their financial issues through e-learning. It’s because these problems differ with employees in different age groups. Younger employees have a tough time managing their current expenses and fixed asset needs like getting a house, and older employees are worried about managing their expenses after retirement.

Companies should provide older employees with sufficient resources to do their retirement planning, which can include audio files on how to manage money.

Employees can be taught about when they would like to retire when they have enough funds to go through old age. The employees can decide how much they would like to work after a certain age, depending on their past and current savings and future expenses. The companies can advise employees on which scheme they should invest in as per the rate of interest offered. Also, they should invest depending on how many years they have left to work because the lesser the years, the more lucrative should be an investment.

With financial e-learning for retirement, employees can retire at an appropriate age, leaving their job open for new employees helping the new talent to blossom.

29 Dec 2021
banking training program

Do banks require a banking training program? If yes, why?

The pandemic has forced businesses to alter the way they conduct operations. It had the same effect on banks also that had to reskill employees because they had no other option when the customers were not willing to come in person. The banks also can’t afford to fire redundant employees because their operations need individuals with integrity. The banking employees have to be hired after rigorous criminal checks, due to which frequent hiring is not possible. Apart from that, employees are hired after testing them for mathematical aptitude and English comprehension skills.

Hence, banks have to reskill such employees by keeping a close watch on the changing trends. You can conduct tests with employees to know the skill gaps required for fulfilling crucial business goals.

Banks also have to check whether the training program they are looking to implement matches the needs of the trainees, whether they want a hybrid or an online solution.

An online banking training program is of two types, one which is related to banking operations such as handling checks, checking whether the currency or the check submitted for deposits is counterfeit or not.

The second category of such programs includes elucidating on the business etiquette and the latest regulatory compliance.

Why is a banking training program required?

Lack of employees:

The training of employees can be done with employees from other departments, for example; customer service representatives(CSR) can be trained with the Operations employees so that the former can enhance their knowledge of banking services. The latter can improve their communication skills and hence can deal with customers when there is a shortage of CSR.

Training freshers with different educational backgrounds:

Banks need to have scalable training content, too, which can be provided to a larger number of employees when the need emerges. Hence, they should have training resources for online mode also when the new employees can’t attend training physically.

The training content should be reusable so that changes can be made to it as per the modifications in compliance laws. The main problem before taking up a banking training program is that it needs to be specific. There have to be different programs for new and old employees, where the former need onboarding but the latter need upskilling for better roles. Hence, the challenge lies with the e-learning companies USA who have to prepare training material as per employees. Onboarding is also tougher for freshers who have the relevant degrees but don’t know the exact duties of their job role. In India, a banking training program is a must because the graduates in different streams are hired. Thus, such programs teach the fundamentals of banking to non-commerce graduates and about the proprietary banking software to those who are not accustomed to working with IT.

The employees can be taught about the banking infrastructure, which can make them work better. So recruits can be taken through simulations where they can be shown how banking employees work in conjunction with each other to make things happen.

A banking training program is also vital for employees because when there is a hike in demand for services, they can easily adapt to different roles. It’s because a banking training program teaches graduate freshers different skills including business, communication, and software skills.

Divisional training is also part of a banking program because new employees might be working in different departments of the bank such as commercial banking and investment banking etc.

Training employees for quality and not quantity :

Banks also have to check whether the employees are performing reliably and are not committing mistakes due to the pressure of working at speed. This can cause a lot of problems for the bank because any unintentional error with the customers’ money can cause them to pay for damages and lose customer credibility. Hence, even if employees are doing their work at a pace, they should be trained to double-check their data entries before pressing the “SUBMIT” Button.

It’s better that since the employees can commit mistakes if working quickly, the repetitive tasks should be delegated to AI-based software.

AI is also helping banks to carry out the tasks of record-keeping efficiently. Banking employees also think that due to the implementation of AI, they are faced with lesser work. They can put their attention into creative tasks, such as suggesting ways to customers to save profitably.

How can banks make employees imbibe knowledge from such programs?

Banks have to ensure that the employees attend such programs, which can happen when it’s a must for staying hired. However, employees also have to be rewarded for learning from these programs by introducing metrics to measure an employee’s learning. Whenever an employee scores the highest marks on a quiz, it can be informed to everyone else in the organization.

Every quiz should have a level attached to it. But these quizzes must be related to credit-based courses, such as teaching employees about how to handle loan requests based on a borrowers’ credibility assessed from his tax return and other financial statements, etc.

There can be different such courses for banking employees who make decisions to lend to high worth borrowers and conventional borrowers, such as those for home loans etc. Evaluating the creditworthiness of borrowers is important because any loan default means a loss for the bank. Hence, the documents such as tax returns need to be checked whether a borrower has enough salaried and non-salaried incomes for the requested loan amount.

A banking training program also helps employees in judging that if the collateral is getting used for securing the loan, is it enough to recover the dues in the situation of non-repayment.

Hence, a banking training program ensures that employees in such decision-making roles have proper job aids. When employees have completed a banking training program, they also have a scope for career progression in the same bank.

10 Dec 2021
Fintech training

Why Fintech training is needed now? 

The BFSI companies are implementing Fintech on a large scale now. But employees have to be taught how to use Fintech. Fintech implies the technology that makes the provision of banking and related services to customers easier. Employers have to comprehend the underlying problems for the employees in applying new technology. The issue with companies is that when they introduce Fintech is that they forget all the employees have a learning curve. So, they can imbibe the relevant software skills slowly but not in a day and hence employers have to be patient. These learning curves can also vary depending on how sharp an employee is. Hence, Fintech training is a continuous process and not one-time. Moreover, such training has to be implemented again once here are some software updates.

Fintech is used in all kinds of organizations now because each one of them wants faster servicing of the customers. Hence, Fintech enables expedited invoicing.

But the employees all over the organization have to be trained in using such solutions because their cooperation can help in introducing digitalization. These are the reasons why such training is needed more than ever now:

Extensive use in the BFSI industry:

Fintech is getting implemented rampantly in banks and financial organizations because customers want automated operations. They don’t want to waste their time in banks to withdraw money because it takes time dealing with clerks. Instead, a majority of them use mobile or net banking and this trend will increase in the future. So, the financial institutions that don’t employ such software or don’t deliver the relevant software knowledge to employees can end up losing a chunk of customers.

The data generated through the Fintech software is a large part of this product offering. So, elucidating employees about data analytics is a crucial part of software training. They should know how to conclude the data for easing up effective decision-making by the organization. Fintech is safer than compared to the legacy systems used by conventional banks in terms of data protection.

Studying website traffic:

The employees can be taught so much when the banking transactions are conducted online. It’s because, at the end of the day, they can fill in reports about the traffic patterns. This will provide to them the demand for which banking product is the highest.

But apart from employees, customers also need to be educated about the benefit of online banking. It’s because when they are trained so, their cost of the internet would be less due to faster resolution by them.

The banking employees need proper Fintech training also because they should not be installing anything without the permission of the IT.

When they are using any untrustworthy software, they are putting the company’s data at risk.

Tech companies getting into the finance sector:

There are not many options available before finance professionals when it comes to learning the Fintech software critical to their industry. Hence, their company must provide Fintech training to them. The rising need for Fintech training is also getting felt because tech companies are also expanding into this sector. For example, WhatsApp recently launched its own payment platform so that users can pay through it apart from chatting. Given the user base WhatsApp has throughout the world, its payment platform would be a strong competition to others. Hence, employees of such companies need to be re-skilled to deal with the financial services.

Better services by finance companies:

However, the need for Fintech training is more among financial institutions, because 37% of them have included such solutions now. In the future Fintech, training will become quite mandatory because financial institutions believe that artificial intelligence will be an altering technology in the future. In the insurance sector, the Internet of Things is also getting adopted because the insurers are using it to get real-time health information about the insured.

Businesses are also adopting technologies like facial recognition, to ensure that customers don’t become victims of fraud in online transactions. The banks can detect whether it’s the customer conducting the transaction, not an imposter who has stolen his identity.

Hence, Fintech training is important for such banks which want to adopt useful software.

Coming up of neobanking:

The move to digital banking has also made competition tough for traditional banks. Customers also prefer neobanks now because they don’t have to visit the bank’s office. It’s hassle-free to open an account with a neobank because all documents have to be uploaded online. In the case of India, neobanks are yet to exist because RBI has mandated that a bank needs to have a physical presence. So, such banks are providing their operations through the physically present bank. Such banks are posing huge competition for traditional customers in the domain of retail customers.

Hence, conventional banks have to use Fintech to safeguard their business.

29 Oct 2021
Fintech training

How do banks need to plan their fintech training for maximum results?

Fintech i.e. finance and technology has become the mainstay of the BFSI industry. These institutions can’t do without the use of tech-based financial services because they have to simplify procedures for their customers. There is a huge focus on fintech services by banks. Retail banks have started spending huge money on enabling digital technology. The employees, therefore, have to be elucidated about the use of the fintech technologies for the betterment of their work procedures and including efficacy in their services. For example, Microsoft has introduced Dynamics 365 Banking Accelerator, and employees must be aware of its usage. It makes sure that any manager can keep a track of the appointments.

Apart from that, he can also share referrals about banking products with other employees. An employee can set an account on this application and through his dashboard, he can view how many accounts his branch has. He can also view how many potential customers have applied to obtain loans from this bank through its website and its locations. When all this information has been aggregated, it can be sent to the concerned banking officer for further processing. This is how Fintech training is useful for banking institutions. 

  • View loan application and processing status

He can also view the status of different loan applications, whether they are still in processing or have cleared the final stage. The manager can also supervise the performance of his subordinates in how much time they are taking in declining or approving a loan application. So, this way, managers can check whether their performance is up to the mark as compared to competitors.

But the banks have not been able to realize value on their Fintech investments because employees have not been able to use them. Companies need to understand why employees are not able to learn technology. It’s better, that when introducing cutting-edge Fintech, banks must know whether employees will be able to use them or not. That’s why the 20 billion dollars investment of retail banks in fintech has not yielded the desired returns.

So, how to handle fintech training:

  • Decide which technology is important

Companies need to have a systematic approach to fintech training.

The organization needs to understand what kinds of problems are its priorities. It might be true that some employees might have different issues than others.
Anyway, all the employees don’t need to be trained on the same kind of Fintech technologies, and it varies with their roles in the company. The company needs to prioritize which technologies need to be taught, like how many employees should be acquainted with Dynamics 365. Companies need to strategize Fintech e-learning based on which technology will make them reap the highest returns. They also need to think in terms of which implementing technology will have the most positive impact on improving customer experience.

  • Continuous training is needed

Fintech training is not a one-time job. It’s because such software is getting developed continuously and hence companies need to update their training material simultaneously. The employees need to be given training material based on any new software is introduced in the market. Such training material can be in the form of e-learning including self-help documentation or online sessions either developed in the form of software screencasts shared by an expert.

  • Data analytics e-learning is crucial too

Even though Fintech has eased up consumer connectivity, the employees must know how to do data analysis through them. Although the fintech software can aggregate the data and highlight the patterns, it’s the customer relationship officers who have to analyze the data. The officers have to check the waiting times for different customers and how they have responded. For example, if a certain customer took back his loan application because he didn’t get an answer in time, he needs to be treated well the next time.

The customers also needed to be treated differently based on their spending behavior because they require different kinds of loans.

Big Data analysis helps banking officers deal with customer segmentation based on risk, gender, location, age, and wealth and how they are to be dealt with. Hence, e-learning needs to be customized to provide such data analytics training to employees.

19 Oct 2021
elearning companies USA

Elearning supports business continuity planning 

The world has experienced such a huge change due to the pandemic. Many companies indeed had to shut down because they were not able to handle challenges imposed on them. This pandemic created unprecedented stress for companies who had to put up work from home employees. Never before in the history of mankind, had such a work culture been introduced.

As an aftermath, the companies, therefore, turned to e-learning companies USA to educate managers about Crisis Planning & Management and Disaster Recovery for such critical situations.

Organizations are now including such courses as part of their training so that the situation does not go out of hand as it happened during 2020.

That’s when businesses were not prepared to handle employees working from their abodes. But, with business continuity e-learning companies are prepared to handle any exigent situations before they happen. Anything that can adversely affect business operations like a natural catastrophe, violence in the workplace, and even employee strikes can be dealt with, with such training. Every company needs to take such kind of training seriously and ensure that all the managers sign up for it.

This kind of training includes topics such as:

Talking is crucial: Communication with external stakeholders is the key during such problems. So, managers are taught about how to convince vendors and customers that things are under control. Buyers need to be persuaded that companies are not going to stop their supply. It’s because some customers are crucial for business and it does not want to lose them.

Employees can also get troubled during such situations and may try to change jobs because they disbelieve a company’s capacity to pay salaries. Hence a company needs to clear their misconceptions about any discrepancies in salary disbursement.

How to replace normal work methods: A company needs to decide the replacement technology when any disaster strikes. Every infrastructure related to such technology should have been arranged beforehand to avoid any delay in work.

If the pre-decided technology can’t be implemented during the disaster, then any substitute workaround process should also have been planned. All these factors need to be documented properly so that they are available for consultation during a crisis.

Substitute offices and substitute labor: Companies must have alternative offices available for employees when they can’t work from their authorized offices. It’s also vital that replacement staff has been arranged in case the regular employees have to discontinue from their jobs due to illness or urgent needs. A company can’t postpone its work and let go of normal orders from long term clients because of the unavailability of staff.

How can e-learning companies USA help?

E-learning companies USA are aiding companies by providing training for critical software needed during a disaster. For example, during the pandemic, many companies needed to assess their future finances with special software. Due to training only, managers could forecast whether the cash flows generated through sales were enough to support the outflows caused by the payments of salaries. And as a result, businesses could calculate how many employees had to be retained for maintaining profitable operations.

Knowing such software is the task of the managers in a company who have been delegated with the responsibility of handling business continuity planning.

Moreover, a team structure is important for a company to smoothly wade out of such a situation. So apart from a sponsor who heads all the business continuity operations, there should be two managers under him who carry out his instructions. Knowledge of administrative tasks is useful for executing business continuity tasks. Hence an administrative assistant should also be part of the team. He can be given special training for this indispensable role by the course content given by e-learning companies USA.

It’s beneficial to impart business continuity education through e-learning companies USA so that the companies don’t face any hindrance during this time. A strategy to be implemented during this time has to be created, and it might not be easy to do so without the IT department which knows whether certain plans can be used or not. They can hand out a checklist to every department to know which tasks are crucial for operations and hence IT department can suggest the requisite plans and support systems. The concerned departments can be asked whether they have such support systems in place for such contingencies.

Hence e-learning companies USA can train managers about how to plan out business continuity, taking employees into confidence.

18 Oct 2021
LMS in banking

How has e-mandate introduced by the RBI necessitated LMS in banking?

The LMS in banking has become a major need of such organizations because the compliance authorities have become vigilant.

The banks have to operate as per these guidelines and their procedures should be in line with them. Now a new rule has been introduced by RBI to protect banking customers who integrate their accounts with UPI. The banks can’t deduct payments from a customer’s account as per the recurring payment option. This is a relief for so many customers whose accounts were debited for funds as part of utility bills and OTT recharge payments.

Earlier the deadline for the banks to initiate action as per this change was 31st March 2021. But the deadline had been extended because some of the members of the BFSI industry could not introduce changes so soon. This was due to the inconvenience caused to the OTT industry, which had been receiving recurring payments from their customers through credit cards. Although banks were willing to make the changes, the OTT providers were not yet ready, due to which RBI had to enhance the deadline. However, the banks didn’t make any recurring payments for a customer from 1st April, through the latter’s credit cards. Instead, the customers themselves made such payments to the merchants, such as OTT platforms directly.

Hence the new deadline was the 30th September of this year.

That is why LMS in banking is necessary so that no compliance rules are broken by banking executives.

It is up to the customer now to opt for the e-mandate facility at the time when they register for their credit card. This implies that they can choose to validate recurring payments through their cards through the AFA procedure. If a customer has not taken such a facility, no recurring payments can be made through his credit card.

What is the e-mandate procedure?

As per the change, the banks would have to ask the customer before making any payments through the additional factor of authentication (AFA). As per this practice, the banks will have to take a customer’s approval 24 hours before auto-debiting his account. It’s because the customers might no longer want to continue with the service and hence the banks can’t make payments on their behalf. The customers can be asked for their readiness for such transactions either through an email or an SMS as selected by them. Such notification will inform the customer about the relevant transaction details such as the merchant’s name, the amount of the transaction, etc. The customer can cancel the transaction.

Well, the banks will have to take the customer’s special consent for payments for amounts more than Rs 5000. The agreement procedure to be followed by NBFC’s and banks would include sending an OTP to the customer before making any such payments.

But these new auto-debit rules don’t apply to the payments for mutual funds and loan installments and banks don’t need to seek the prior consent of customers for such recurring payments. However, the bank making such auto-debits should be the registered bank for such payments.

This kind of modification where the customer’s approval is mandatory was introduced first for card-based transactions in August 2021 by the apex bank. This step has been taken by RBI to bolster the confidence of the public in the financial sector of our country.

 

 

 

 

30 Sep 2021
banking elearning

Use banking elearning to prevent theft of card details


Banking e-learning
is a valuable resource for such institutions. It’s because due to the massive foray of technology in this sector. Apart from employees, the banking customers also need such training to safeguard them from so many frauds. Due to cashless transactions happening everywhere, customers are likely to leak their ATM pins while withdrawing money. The customers should make sure that they don’t write the PIN anywhere, especially on the back of the card.

What is skimming at ATMs?

Skimming is the act of stealing money from fraudsters through your ATM cards when they get unknown access to your PINs. Such PINs are revealed to them because they install a small device called a skimmer on the card slot of the ATM machine. So when you insert your card into this slot to withdraw some money, this device scans all your card’s details and when you have mentioned your PIN on it, the risk of losing money is high. This skimming can also happen in restaurants where you use your card to make bill payments.

Even when you have not written the PIN on the card’s backside, the scammers can know it when you enter it into the ATM machine while making a transaction. The wireless skimmer device then transfers all the PIN details to the fraudsters. So, before leaving an ATM, make sure that you click the Cancel button on the ATM machine. Also, tear the transaction slip so that no one can know your card details. Apart from a skimming machine, there could also be cameras installed at a bank. So always cover the keypad of an ATM machine with your hands while entering the PIN. Hence, banking e-learning is important for customers to conduct safe ATM transactions.

Skimming happening in hotels and gas stations

A powerful method of protecting yourself from skimming is that when you provide your credit card for swiping on a POS machine at a merchant outlet like a restaurant, make sure that it’s done before you. Don’t give away your card to a server for making payments. This way, your card won’t be swiped in a skimming machine by malicious servers to get card details through its magnetic chip which they can use to produce fake cards. They can also retrieve the PIN through hacking or produce counterfeit documents like a driver’s license to confirm identity. Also, register for SMS alerts with your bank, so that any unauthorized debit transaction comes to your notice immediately.

When hotels have unscrupulous employees who use customers’ debit cards on skimming machines their reputation gets affected and they can even face lawsuits when customers are robbed of large sums. But some employees don’t know anything about skimming and are tricked by their colleagues into using such machines. Hence, banking elearning is useful for such naïve employees.

You can detect a skimming machine at a gas station also when you twist the card reader and it’s loose. The skimming machine could be installed inside the gas POS machine. The keypad could also be loose because it has been placed on top of the real one to capture your PIN.
Elucidate customers through banking e-learning

The best way is to educate customers about skimming is through banking e-learning

This ensures that they don’t conduct any online transaction using their debit card without entering their OTP. This kind of protection makes sure that anyone who knows the debit card/credit card credentials and PIN can’t withdraw money without having access to the customer’s registered mobile number with the bank where the OTP is delivered. Also, it’s better to keep the phone locked at all times. Nobody should be able to access your phone without knowing your swiping patterns or passwords or fingerprints.

Banking E-learning is also useful for hospitality employees

Hospitality is also a major sector where such skimming happens. Hence, employees must be trained on how to protect customer’s money. When employees are trained and see a fraud, they must report it to authorities. They should be explained the risk of theft in such situations because they can lose their job. Hence, they should be trained about ethics and how their morality must be included in their duties.

09 Sep 2021
finance elearning

Use finance elearning to avoid banking frauds

Finance eLearning has become one of the mainstream changes for banks because of the landmark developments in this sector. This is the time when the e-learning companies in the US can have a progressive time. The reason there was a financial recession in the year 2008 was that BFSI employees suffered from a lack of knowledge. If the employees are made to understand their roles in the context of their effect on customers, they will adhere to compliance training. This will affect their organization as a whole because it will successfully follow the compliance rules generated by the apex banks and the government. I.e., the regulators.

The e-learning companies in the US with their comprehensive finance e-learning courses can help the compliance teams of banks.

Two incidents, in particular, have been responsible for the awakening of the BFSI industry to the imperativeness of finance e-learning.
Great Recession 2008

The Great Recession of 2008 as it is called happened because financial companies embarked on too many risky ventures like the Shadow Banking System, which includes the activities of these institutions as financial intermediaries. These financial intermediaries facilitated the lending process by serving as a middleman between the borrower and the lender. The financial institutions eased up the creation of credit across the global financial system but their activities were not subject to legal control. These activities include borrowing against unlisted derivatives.

When the financial institutions could not get the invested money in the purchase of such instruments by their buyers, their credit flow to consumers was adversely affected. So, if the BFSI employees were given adequate financial training they would not have sold such perilous financial instruments to American consumers.

There were also Credit Default Swaps where the banks sold CDS instruments to lenders as per which they were liable to pay them on a borrower’s behalf in case the latter defaulted on his loan. A CDS can be a safe instrument unless the borrowers stop paying their interests for them to the lender. As per this instrument, the lender, who buys CDS pays insurance premiums to the bank, which sells them so that the former’s loan repayments are safeguarded when anything unfavorable happens.

Hence, the BFSI executives must be aware of the lending norms and assess the risk carefully for which finance e-learning is crucial.

As a result, there were amendments in which securities could be registered and traded. It was done to safeguard the money of innocent American citizens.

There were changes in Regulation D of the Dodd-Frank Securities Act of 1933 especially to change the definition of an accredited investor. As per this change of definition, an accredited investor could not be someone who has a primary residence to prove his net worth. This asset could not be counted as part of his net worth to issue a security.

Hence banking employees had to be informed of this change through finance e-learning so that they had cognizance of what is a registered security.

There has been a detailed survey in which it was found that BFSI employees do consider improvement in knowledge critical for making sure that their institution is saved from risks. The finance e-learning can make sure employees know about compliance training. There might be a limitation on what intradepartmental knowledge transfer can happen in banks, but such employees should be acquainted with policy changes.

Nirav Modi-PNB fraud

For example, a similar kind of financial crisis happened in India because of unsupervised lending by a bank and in the aftermath, these institutions were asked to integrate their internal software into the advanced SWIFT interbank messaging system. Such interlinking implies that whenever banks communicate with the international banks, the RBI knows of it. This kind of regulatory action was needed because 1.77 billion dollars were lost by international Indian banks in loans to Nirav Modi who defaulted and later fled. PNB, whose Mumbai branch employees were responsible for this fraud, said that the latter didn’t enter any kind of illegal transactions in the bank’s banking software. If the issuance of these LOU’s was recorded in PNB’s software, it would have discovered the ongoing fraud in time. These illegal transactions happened when those two employees generated unauthorized Letters of Undertaking to Nirav Modi to get credit from overseas branches of PNB. As per these letters, Nirav Modi was supposed to provide PNB with margin money which didn’t happen. The Letter of Undertaking is generated by the issuing bank so that its customers could be given a short-term credit by a foreign bank to pay money to their overseas vendors. However, this credit is given for a limited period, which is 90 days. If the PNB Mumbai’s bank employees had been aware of the rules associated with an LOU through finance e-learning, they would not have committed such a fraud.

SWIFT is a software developed by Belgium based company and is used for communication between banks located all over the world.

 

08 Sep 2021
finance elearning

Ease loan origination with finance e-learning for bank employees 

The banks are keenly trying to get more customers on board for themselves. These institutions are devising loan products for customers, but, when it comes to technology they are stuck. But now there have been revolutions in LMS in banking like the invention of the loan origination system (LOS). The loan origination system has been prepared to make sure that banks don’t face any issues while giving loans. As far as a LOS is concerned, it provides leads about loan applicants to banks because it’s amalgamated with the website loan application form. So, this software ensures that the banks can integrate all the information about the borrower and even check their credibility and documents. A conventional LOS checks all the requirements which are crucial for a bank while giving loans. The LOS also sends an autoresponder email to the prospective borrower when the bank either approves or rejects the loan. This kind of banking software reduces the need for banking executives to use third-party applications in the loan appraisal process because they are integrated with it. Such software saves a bank a lot of manpower.

Permanent storage of customer information

The banks can make sure that the customer document files are not lost when they are stored in a LOS. Hence the customer documents complemented with an e-signature are stored in a LOS. As soon as a customer document is uploaded to an LMS, the verification workflow starts, and the third-party confirmation is started. The prospective borrowers are then given scorecards about their credibility prospects in the LOS.

When the customer data is stored online, it can be accessed in the future also.

The banks need to provide finance e-learning to employees so that they easily operate such software.

No need for manual verification

A LOS is a feasible option for banks that don’t have time to install heavy third-party applications. When the banks have fast systems for assessing customer eligibility for loans, they can get a faster entry into the lending market. With a LOS that’s installed on a web server, there’s no need to get an in-house server.

But there is a need for finance e-learning so that bank employees can access such software from their homes and learn about new loan applications. This kind of elearning is useful for employees so that they don’t have any dearth of knowledge but using systems such as LOS.

Easy accessibility of data

Since the data in a LOS hosted on a cloud-based server is accessible anywhere, it eases up the process for bank employees. It ensures that they don’t have to conduct manual verification, which is also relaxing for customers because they get a speedy response to their loan applications. With this LOS, where everything is automated including document management, loan verification, the bank employees don’t have access to third-party websites for processes such as identity verification, employment background check, and fill up their website forms.

How can finance e-learning be useful?

Scanning and uploading documents

Finance eLearning can be used by bank employees to use such software for document uploading and informing the managers about any document discrepancy. They can also search for the documents easily because LOS stores them in a database management system and hence they are searchable through the primary keys attached to each customer record.

Later, when the customer asks about where his loan processing is, they can send the status updates to him after assessing the LOS. If a customer is late in document submission, the banking employees can also initiate a chat with him through the LOS to know the reasons for the delay.

Informing customers

Since the phone numbers of the customers are stored in the LOS, they can be scheduled to receive automatic SMS about the status of their loan application. Any change in bank policies, holidays, and interest rates can also be relayed. All the SMS details of the customers are stored in this software to ensure that the banks have all their history with them.

Know about interest payments

The banking employees also learn about loan servicing through this software via finance e-learning. The software sends automatic emails to banking employees and borrowers when the interest payment is due. So, if a borrower does not meet his interest obligations, in time, they can inform the bank manager about it and hence downgrade his creditworthiness. The banking employees must also know how to check whether a customer has sent a wire transfer for meeting his due interest.

If the customer is behind schedule on his interest payments, the bank executives receive all the information about the late payment fees through the LOS. Interest payments can also be expedited when there are customer portals established for them. They can be integrated with the bank LOS and enabled through finance e-learning, banking employees can guide customers about using such portals. Even chatbots can be used for customer interaction.

Analyze banking flows

The critical aspect of finance e-learning is that it’s useful for banking managers also because they can decide the portfolio of such institutions. When you get reports about cash flows of different kinds of borrowers, from retail to individual, they can analyze what kind of profits are made by them. Any kind of misbehavior can also be recorded for future lending purposes.

22 Jan 2021
elearning companies

Advantages of an extended enterprise LMS

Is a big LMS of any use to a company? By a big LMS, it means an extended enterprise LMS.

You can get such an LMS from one of the elearning companies.

This kind of LMS makes sure that different kinds of customers can be trained by making sure that there are different portals for them. This depends on what sort of training the team needs. The finance department sets the rules for the purchase of the LMS. It’s because although there might be advanced skills involved, they are not worth the monetary risks. However, you need to get an LMS whether it is to train internal employees or external partners of the company. They can be consumers, vendors or the sale agents who work on commission. Here are some reasons why you should invest in a bigger LMS to train them. 

These are the following benefits you get from a large or enterprise based LMS:

Sales teams are empowered 

Sales is a job which requires a lot of efforts, but it gives some rewards also. The salespeople are not hired directly by the company. Instead, they get a commission on sales made by them. It implies that to every 20 prospects they try to sell, they are only able to sell to one lead. You can hire a large number of these salespeople because payments are only made when sales are done. An LMS can help you with training these salespeople. It makes sure that they can perform their jobs better, which benefits you apart from increasing their earnings. This kind of training also boosts the reputation of the company among such salespeople and to the customers to whom they sell your product. You must make sure that the LMS has offline access making it accessible on mobile phones and tablets. 

Clear brand identity 

Once your business can sponsor a franchise, it implies you are successful. But good service should follow your brand wherever it appears. But the point is how to monitor these branches. The best way is to make sure that these franchise members have access to online training. They can be taught about the different trivia about the brand and the skills needed by them. 

You can make sure such kind of training is included when you sign a franchise deal with them. This way, all of your franchisees will get the same training. Every shop that is selling your product will get the same training. This kind of training makes sure that your brand name is boosted. The brand develops a certain identity by every salesperson selling in the same way. An enterprise-based LMS makes sure that whenever such franchisees face any crisis, they can get direct access to you. It makes sure nothing goes wrong with these franchisees promoting you and your PR is not affected. 

Reduces training costs

Depending on the set up of your business., you have various external sales teams. There are also franchisees. You can’t go about training everyone. The companies selling fast-moving consumer goods are likely to sell products through grocery stores and local shops. The customers don’t meet the sales staff, rather they come across the distributors. Since these distributors make sales and leave a lasting impression on customer’s minds, it’s vital to train them. Instead of having a seminar every season, for such distributors and retailers, it’s better to have online training. You are saving a lot of resources like those spent on transport and lodging of distributors. Apart from that, the staff of the company does not need to be devoted to tackling training. 

A centralised system to train

Once the partners are trained about the customer dealing with extended enterprise LMS, they can make sure that they have the best product knowledge on their hands. They get certifications for their training and also know how to listen to customers’ woes. This makes sure your brand becomes a favourite with customers. So, the major benefit of an enterprise based LMS is that the training can be given from a central system to distributors, sales agents and company’s internal sales force, wherever it might be. 

Involve customers

This kind of training is not meant for franchisees. It’s meant for customers also. Its because when customers shop online, they must know how to make the payment. By providing brand education to them, you can make sure customers have trust in the brand. You can give customers product training, explaining all the technical terms as to why they should choose a product over others. 

If you have not laid your hands, on the extended enterprise LMS, you can go through a directory of elearning companies and LMS vendors for it. 

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DSLR stands for Digital single-lens reflex camera. It has a digital imaging sensor. In this kind of camera, the captured image can be viewed in the viewfinder when the shutter button is pressed. Its shown through the main lens rather than through a secondary lens, so the user knows what has been captured. 

He was a German psychologist who is known for discovering the forgetting curve. According to this curve, the biggest decline in memory happens within 20 minutes, and then 1 hour.