Weekly Newsletter - 04.09.2024

US banks struggle with compliance

Author

Learning Ledger
September 04, 2024 • Estimated Reading Time: 7 minutes

In the fast-paced world of finance, where market conditions can shift overnight, the ability to adapt quickly is not just an advantage—it's a necessity. For Learning & Development (L&D) teams in the finance sector, adopting Agile methodologies can be the game-changer that drives more impactful and responsive learning programs.

Agile isn't just for tech teams anymore. It’s about adopting a learner-centered approach where solutions are delivered in small, manageable chunks, allowing for continuous feedback and iteration. This methodology not only aligns with the dynamic nature of financial markets but also ensures that learning initiatives are always relevant and impactful.

The Promise of Agile L&D

In an industry where precision and data-driven decisions are paramount, Agile L&D brings a refreshing approach to tackling the age-old challenges of learning and development. Traditional models like ADDIE have often fallen short, feeling more like a box-ticking exercise than a true contributor to business success. Agile, on the other hand, encourages L&D teams to let go of preconceived solutions and instead, focus on what the data reveals about learner needs.

Adopting Agile practices in L&D enables teams to pivot quickly, test hypotheses through experimentation, and refine solutions based on real feedback rather than assumptions. This approach is particularly powerful in finance, where the stakes are high, and the need for accurate, timely, and relevant learning is critical.

Solving the Evaluation Problem

One of the long-standing challenges in L&D has been effectively measuring the impact of training programs. Agile L&D addresses this by shifting the focus from superficial metrics like content engagement to what truly matters—business impact. By continuously gathering and analyzing data, L&D teams can not only demonstrate the effectiveness of their programs but also articulate the value they bring to the organization in a language that resonates with senior leadership.

For finance L&D teams, this means moving beyond vanity metrics and instead, providing clear, data-backed evidence of how learning interventions are driving business outcomes, such as improved compliance, risk management, and operational efficiency.

Delivering Value Early and Often

Agile also allows L&D teams to break down large, complex projects into smaller, prioritized components, ensuring that value is delivered early and consistently. In finance, where long development cycles can lead to missed opportunities, this approach is invaluable. By focusing on delivering impactful learning experiences in shorter cycles, finance L&D teams can remain responsive to the ever-evolving needs of their organizations.

L&D as the Catalyst for Organizational Agility

During a recent webinar hosted by Hive Learning, Natal Dank’s insights on Agile L&D highlighted a profound truth: "L&D is where agility in an organization starts." This statement underscores the critical role that L&D plays in shaping and sustaining an organization’s culture. By pioneering Agile practices, L&D teams can lead the way, modeling the behaviors and mindsets that the rest of the organization can adopt.

For finance organizations, where agility is often equated with competitive advantage, the L&D function becomes the linchpin in driving cultural and operational transformation.

Join the Agile L&D Movement

Hive Learning believes that embracing Agile practices is not just a trend—it's the future of L&D, especially in fast-moving sectors like finance. If your organization hasn’t yet adopted Agile in your L&D practice, now is the time to explore its potential. And if you’re already on this journey, Hive Learning encourages you to continue the conversation. How is Agile working for you? What challenges have you faced, and how have you overcome them?

Generative AI (genAI) offers Learning and Development (L&D) professionals new avenues to engage learners, enhance value, and scale high-quality learning experiences. However, before implementing a genAI-powered learning strategy, it is crucial to consider responsible and ethical practices. GenAI will not render L&D professionals obsolete; instead, it challenges them to adapt and innovate, ensuring learning solutions remain relevant in an era of smart tools and 24/7 information access.

To build effective genAI-powered learning strategies, several key considerations must be addressed. First, value is paramount; genAI can help deliver quality learning solutions within tight budgets and timelines, offering significant productivity gains. However, data protection and privacy are critical. Thoroughly understanding how genAI tools handle data is essential to avoid long-term risks. Collaboration with legal and IT departments is necessary to assess and mitigate these risks.

Human oversight and ethics are also vital. Regular evaluation of genAI outputs ensures alignment with organizational values, including diversity, equity, inclusion, and belonging (DEIB). Authenticity is another consideration; sometimes, human interaction is irreplaceable, particularly when emotional intelligence and cultural context are crucial. GenAI can support tasks and real-time coaching but should complement, not replace, human expertise.

The 2024 State of Embedded Finance Report reveals that 80% of U.S. sponsor banks struggle with compliance, despite embedded finance generating over 50% of their revenue. Increased regulatory scrutiny has led to significant financial and reputational losses. Banks are investing in compliance technology to address these challenges.

Integrated Business Planning (IBP) aligns finance with broader business functions, enhancing forecasting, decision-making, and strategic alignment. Originating from Sales and Operations Planning, IBP breaks down silos, integrates cross-functional insights, and supports dynamic, accurate financial planning. Embracing IBP and Extended Planning & Analysis (xP&A) positions FP&A professionals as strategic business drivers.

Amazon and Barclays have launched a co-branded credit card in the UK, offering rewards on everyday purchases. Prime members get enhanced cashback during key shopping events. The card features a digital-first approach, no annual fee, and a 0% APR for the first six months, reflecting fintech innovation.

Direct sourcing in talent acquisition involves creating a strong employer brand, leveraging advanced technology, segmenting talent pools, and developing engagement strategies. Focusing on candidate experience, optimizing performance, and considering outsourcing to talent partners are key practices. These strategies enhance efficiency, attract top talent, and improve hiring quality.

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