Onboarding process in banks
The onboarding process in a bank is the process of integrating new hires/recruits into the bank's system and culture, and equipping them with the tools and skills they need to be successful in their role. It generally contains the following steps:
- Pre - hire: This
involves providing the new hire with information about the bank, its products
and services, and its culture.
- Offer and acceptance:
Once the new hire has accepted the job offer, they will need to complete the
necessary paperwork and undergo a background check.
- New hire orientation:
This is a one- or two-day session that provides the new hire with an overview
of the bank, its policies and procedures, and its culture.
- Job-specific training:
This training is tailored to the new hire's specific role and responsibilities.
It may include shadowing experienced employees, attending training sessions,
and completing online modules.
- Mentorship: The new hire is paired with a more experienced employee who can provide guidance and support.
Importance
of training programs
Training
programs are essential for new hires in banks. They provide them with the
knowledge and skills they need to perform their jobs effectively and
efficiently. Training programs also help to reduce the risk of errors and
compliance violations. Additionally, training programs can help to create a
more engaged and productive workforce.
Different
training modules and their significance
Different
training modules that are commonly offered in banks include:
- Product
and service training: This training teaches new hires about the bank's products
and services, and how to sell them to customers.
- Compliance training: This training teaches new hires about the bank's compliance policies and procedures, and how to follow them.
- Sales and
customer service training: This training teaches new hires how to sell the
bank's products and services to customers, and how to provide excellent
customer service.
- Technology
training: This training teaches new hires how to use the bank's technology systems
and tools.
Eg : Data analytics in finance is growing in importance. Globally, an increasing number of businesses are using data analytics to improve internal operations. They also rely on data analytics to help them understand their customers on a deeper level. This allows organizational leaders to make informed decisions that promote better business outcomes
(CompTIA.org, n.d.)
- Soft
skills training: This training teaches new hires soft skills such as
communication, teamwork, and conflict resolution.
Eg : Soft skills training is training that focuses on the development of abilities such as communication, teamwork and problem solving as opposed to hard skills which focus on an employee’s technical ability. Other soft skills include emotional intelligence, a positive attitude and taking the initiative. Developing soft skills in the workplace is often underappreciated. However, it’s just as important as hard skills. (Elucidat, 2021)
All of
these training modules are important for new hires in banks. Product and
service training helps them to understand and sell the bank's products and
services to customers. Compliance training helps them to follow the bank's
policies and procedures and avoid compliance violations. Sales and customer
service training helps them to sell the bank's products and services to
customers and provide excellent customer service. Technology training helps
them to use the bank's technology systems and tools. Soft skills training helps
them to develop the soft skills they need to be successful in the workplace.
In
addition to the above training modules, banks may also offer more specialized
training programs for new hires in certain roles. For example, new hires in a
bank's risk department may receive training on risk management and financial
analysis. New hires in a bank's credit department may receive training on
credit scoring and lending. New hires in a bank's investment department may
receive training on investment banking and financial markets.
By
providing new hires with comprehensive training, banks can help them to be successful
in their roles and contribute to the bank's overall success.
References :
CompTIA.org. (n.d.). How Is Data Analytics Used in Finance | CompTIA. [online] Available at: https://www.comptia.org/content/articles/how-is-data-analytics-used-in-finance#myself [Accessed 18 Dec. 2023].
Elucidat. (2021). What is Soft Skills Training? The Complete Guide. [online] Available at: https://www.elucidat.com/blog/soft-skills-training/.
WORKHUMAN EDITORIAL TEAM (2022). What is Training and Development in HRM? 2022 Complete Guide. [online] www.workhuman.com. Available at: https://www.workhuman.com/blog/training-and-development-in-hrm/.
Yes Kalpa. I agree with you. Bank employees need training programs. Specially when bank going to lending. Because currently NPA is the main problem bank is facing. A banking training program also helps employees to judging that if the collateral is valuable to securing the loan, is it enough to recover the dues in the situation of non-repayment. There can be different such courses for banking employees / training programs who make decisions to lend to high worth borrowers and retail 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.
ReplyDeleteIndeed. The banks need to nurture their employees to specialize in each field such as Lending, compliance, Customer Service, Clearing and etc. Specially in lending, a good lender is brought up with proper training and experience. Trainings need to be arranged to harness the lending officers, recovery officers to critically analyze the repayment capacities, cash flows, collateral and etc in order make sure the quality of the advances as well as eying the quantity of the advances. Otherwise the recovery of the money lent is in risk.
DeleteWhen talking about the onboarding process in the banking industry Outsourcing has indeed become a common strategy to address various challenges, including employee turnover. The banking sector, like many other industries, faces the need to adapt to changing market conditions, technological advancements, and cost pressures. Outsourcing is seen as a way to achieve flexibility, efficiency, and cost savings.
ReplyDeleteHi Lakmal!
DeleteYes, outsourcing is common crucial strategy to cover human capital shortage. But, I think it may have some drawbacks in maintaining the sustainability of an Organization. Outsourcing may be having a greater impact on Employee Engagement. For an example, if someone is outsourced while there are permanent employees working on same subjects, the outsourced may have a diminished connection with the organization and its culture.
Hi Lakmal, This is crucial for the banking sector: efficient recruitment and comprehensive training. These practices build a skilled workforce, ensuring adaptability in the dynamic financial landscape.
ReplyDeleteYes indeed Nilmini!
Delete