Tag: LMS in banking

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.

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.

 

 

 

 

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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.