Immerse Yourself
Virtual reality games might be the best way to learn about treating customers fairly. Joanne Smith, Chief Executive & Creative Officer of TCC uncovers the possibilities:
As learning institutions of all ages and sizes release their flock for the summer, I’m 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 nations rising number of unemployed who are looking to re-train themselves in order to find employment in various sectors of the workplace. 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 mind 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 what firms may initially have thought.
There has been a dramatic increase in the quantity and quality of technology and e-commerce driven solutions available to the financial services sector. Whilst 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.
Some larger firms may have incorporated this technology and training procedures into their core proposition but it is surprising how many don’t possess this internal structure and rely on outsourcing such services, much like smaller firms, but obviously on a much larger scale. 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.
Key to the delivery of successful training is engaging an audience and getting them to think, react and involve themselves in their training. Financial services training is no exception, our studies suggest that to provide great training which truly engages staff through traditional learning and budgetary constraints is challenging.
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.
Immersive learning is certainly one way that 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 immersive 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. Immersive learning can also be used to deliver bespoke learning uniquely written and tailored to meet firm’s requirements covering any areas of financial services training or human resource training such as induction. However, it is up to individual businesses to decide the training that is most appropriate and relevant to their requirements. Of course this is also where specialist support can assist with these choices that need to be made.
The innovation behind immersive 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.
The aim of immersive learning is to measure the players’ capabilities and help them improve their understanding and performance. By measuring a product’s usage or impact on behaviours and attitudes, its design can be improved in order to establish a ‘true’ return, in terms of knowledge imparted, on the investment.
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 and challenge problem solving environment which tests the trainee’s skills and knowledge whilst providing continuous feedback about their performance.
Current training solutions available on the market include Anti-Money Laundering, Data Security, and Treating Customers Fairly. We also have a Diversity game that is just in the final throws of development which 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 overarching goal is to increase personal diversity awareness and increase inclusive behaviours.
Delving deeper into the other topic areas, the first specific training solution to look at surrounds the FSA’s ‘Treating Customers Fairly’ principles. The TCF initiative has been driven forward by the FSA over the past seven and a half years or so 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.
The original concept of ‘Treating Customers Fairly’ was initially met with a somewhat quizzical response by many. The immediate chorus of ‘we already do that’ was heard from advisers all over the country and whilst some of these cries were justified, most however 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. Firms 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 Treating Customers Fairly requirements. Participants play roles in six different scenarios. Whether they are senior manager tasked with interviewing department heads to see if TCF culture has been imbedded into their area of responsibility. Or, they can also put themselves in the role of an advisor 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 TCF is not something just owned by the compliance function but how it can embedded into the whole business.
Turning away from TCF, recent acts have highlighted the importance of anti-money laundering and as a result the FSA has put tougher regulation in place. But we think there is still a lot more to do to maintain public confidence in the UK's financial system. Allegations of money laundering are increasing and banks/financial firms are increasingly becoming the target of criminals attempting to launder proceeds of crime. These proceeds go on to fund further criminal acts and even some forms of terrorism. Adequate training should work to encourage good practice and heighten awareness of fraud, criminal activities and how to report suspicious activity. It should immerse the player in situations they may face in real life whilst also providing them with the requisite knowledge in order to identify instances of potential money laundering.
Another area of merit, training-wise is data security. This is not just about how employees use a firm’s IT system but trainees should be taken on a journey to understand the broader aspects of data security. This could take on the form of embarking on a voyage through the eyes of a new employee which would really highlight the importance of both physical data security as well as IT issues. In the game we have developed, in order to bring home the importance of data security, 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 30’s. 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 immersive learning. Compared to more conventional e-learning – which has an 80% non-completion rate, those undertaking immersive learning, on average, play each simulation 4.5 times therefore rapidly increasing the learning capacity and fun aspect.
This ‘fun’ element is one that should not be taken lightly as it is one which can engage various elements of the workforce. By creating a training programme to make this learning interesting, technology has developed into a handy tool that firms can use to positive effect. It enables staff to undertake this learning at their desks, without the need for drawing people together for traditional class-room style teach-ins resulting in examination nerves or revision jitters. So whilst 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.
This article first appeared in 3rd of August edition of Mortgage Solutions