Could Re-Training Improve Your Bank’s Collections Software Investment?
Are you getting the return on investment that you expect – that you demand? Could the gap be in your teams’ knowledge of how to use your technology? You know this is where inadequate and incomplete preparation leaves your financial institution with a shortfall in collections and inadequacies in compliance. If you are seeking to improve your financial institution’s bottom-line and reduce compliance failure risk – and what bank or credit union isnt’? – then improvements in ongoing training could yield significant dividends.
Reinforcing your ongoing training practices is necessary due to turnover and human nature. If you are like most financial institutions, almost 20 percent of your staff turns over every year. This means at least some of your staff is in need of education since the impact of changes to the staff means fresh company faces and seasoned employees performing new functions. Then there are the others who could benefit from a refresher course to augment what they already know — or better yet — what they already use. Even without turnover, staff becomes stale and complacent using only a fraction of the functionally of their software without some form of continuing education.
Better utilization of your financial institution’s software should increase productivity, cut compliance failure risk and associated expenses − together contributing to increased profits and margin improvement.
Compliance is a Driving Force Behind Staying Up-to-Date
An added element to the necessary training regiment is due to the changing regulatory landscape, which has introduced increased focus and heightened expectations for financial institutions. The stakes are higher, the procedures more complex, and the cost of failure is elevated. Building a strong procedural and risk management culture and program starts with a strategic ongoing training plan. For one thing, an escalating demand for transparency and governance has resulted in new challenges. This is particularly true today as conformity with federal and state regulations raises the stress and risk levels at financial institutions.
Undoubtedly, the majority of inquiries at IBS recently focus on ensuring collections follow the rules in this complex regulatory environment. Whether it is Fannie Mae, Freddie Mac, or CFPB delinquent loan servicing requirements, tracking and ensuring compliance is now a critical mandate.
This increasingly complicated regulations landscape calls for, in part, comprehensive ongoing training. In addition, because bank collection software needs updating constantly there are obligatory technical changes. When it comes to the bank collection software system, the training course should be tailored to enable staff to employ all the benefits of the IBS system and get a concrete understanding of successfully managing delinquencies and charge offs.
Without the proper ongoing training, you could be developing weak-link employees with improper skills in areas that could expose compliance risk and would affect the bottom line.
Trained Employees Improve Performance
When it comes to any software system, staff usually gets force-fed training upon implementation or when there is a new hire. This is often referred to as “drinking from the fire hose”, too much information, too fast – to absorb, to own, to employ. Initial staff training is frequently bundled with the purchase and implementation of new technology – from a new core platform, a document-imagining system to a collections-automation platform. Then the training marathon begins. For several days, the retail banking division sits in a makeshift organization demo-station or logs into a Web classroom and gets force-fed “how-to’s” about the new system. Training overload often produces less-than-desired results since only part of the new lessons stick. This results in a dumbing-down of the technology whereas the team only uses the features and functionality remembered from training, and forgets the less-commonly used — but may be more efficient.
However, training is never stagnant and complete. That is why all financial institutions should benefit from continuing education programs for staff. Holding ongoing staff training, or product “refresher courses” helps ensure that the business unit fully leverages functionality and/or applications; and they receive primers on new functionality or enhancements.
IBS provides clients with ongoing and dependable training for their staff. Our Online Self-Guided User Training Modules provide interactive training at no additional cost to supported IBS clients, allowing platform users to take the online classes based on their availability. Some clients include “attendance” to the Online Self-Guided User Training Modules within their staff performance reviews. Requiring refresher training helps ensure that staff stays on top of their professional game.
Refresher training ensures that staff remains current with software capabilities and compliance issues.