Training Employees to Develop Customer Relationships and Bring New Business in Banking

The bedrock of banking success still lies in the strength of customer relationships and the ability to bring in new business. There is an unequivocal link between the training of employees and their capacity to be seen not just as transactional service providers, but as trusted advocates for their clients.

According to an article by Fintech Nexus, younger customers especially are interested in visiting bank branches to obtain advice and otherwise get help with their finances.

"The reasons that they’re most often going into the branch, some of it that have to do with general transactions, deposits, withdrawals, transferring money, those types of things, but they are looking to go back into the branches or visit branches to sit down and get some advice on their financial health,” said Jennifer White, senior director of banking and payments intelligence for J.D. Power.

In this article, we'll explore how leaders at banks, credit unions, and other financial institutions can construct a robust employee training program to improve customer loyalty and new business.

Training Strategies Can Improve Customer Relationships

Banks and other financial institutions have a choice when it comes to training. In-house training, with its tailored approach to the bank's specific requirements and operational nuances, can foster a deeper sense of belonging and alignment with the bank's mission.

However, third-party online training platforms, offer scalability and the ability for employees to train at their own pace. These solutions can be a compelling alternative, especially in large or geographically dispersed banking entities.

Product Training

One effective strategy that financial institutions may employ involves equipping their team members with comprehensive knowledge about the products and services they offer. This can be achieved through detailed product training sessions that not only cover the features and benefits of each product but also teach employees how to match these products with the specific needs and goals of their customers. By understanding the full range of offerings and how they can solve unique customer challenges, employees can become more than just service providers; they transform into valuable advisors and partners in their customers' financial journeys.

Soft Skills Training

Another crucial strategy focuses on developing soft skills, such as communication, empathy, and problem-solving. Role-playing exercises and workshops can be particularly beneficial here, creating scenarios that employees are likely to encounter with customers.

This type of training helps employees practice how to listen actively, respond empathetically, and offer solutions that truly benefit the customer. Empowering employees with these skills can significantly enhance the quality of customer interactions, leading to deeper trust and loyalty, and ultimately, more successful business outcomes for the financial institution.

Knowledge Management Through Technology

Effective knowledge management is critical for financial institutions to ensure that their team members stay informed about the latest products, services, and procedural updates. By leveraging technology, such as a centralized knowledge base accessible through an intranet or a cloud-based platform, employees can easily find and utilize up-to-date information during client interactions.

According to an article in The CFO, "Knowledge management strategies are now an important factor for businesses to consider if their people are to do their jobs well and meet the organizational objectives. Technology and processes to create, host, and share such knowledge with the right people in time for it [to] be useful will make this easy and it’s important to cultivate a culture that would support this mission."

For example, implementing an AI-driven internal search engine can help employees quickly locate relevant documents, product specifications, and compliance guidelines, reducing response times and increasing accuracy in customer communications. Regularly updating this database and incorporating feedback mechanisms can help in keeping the information current and relevant.

This approach not only streamlines the process of information retrieval but also empowers employees to provide consistent, knowledgeable service, thereby enhancing customer trust and satisfaction.

Quantitative and Qualitative Metrics in Training Evaluation

Establishing a set of key performance indicators (KPIs), as well as both quantitative and qualitative metrics, is vital for assessing the efficacy of employee training. Here are a few potential metrics that banks and other financial institutions can use to evaluate the success of their employee training programs:

Quantitative Metrics:

• Increase in sales or new accounts opened.
• Customer retention rates.
• Number of cross-sold products per customer.
• Customer satisfaction scores through surveys.
• Time spent with clients during consultations.
• Reduction in customer complaints.
• Employee retention rates post-training.
• Completion rates of training modules.

Qualitative Metrics:

• Employee confidence in handling customer inquiries and providing solutions.
• Quality of customer interactions, as assessed through mystery shopping or peer reviews.
• Improvement in customer feedback regarding the quality of advice and service.
• Enhanced team collaboration and sharing of best practices.
• Increased initiative in seeking out opportunities for customer relationship deepening.
• Customer testimonials and stories of exceptional service.
• Employee self-assessment before and after training to gauge perceived improvement.

These metrics should encapsulate not only the measurable outcomes such as sales figures and customer satisfaction ratings but also the intangibles of relationship building and nuanced client interactions that are challenging to quantify.

Why Continuous Learning is Critical

Employee development should not be viewed as a one-off expense but as an ongoing investment.

According to an article by Forbes, "For leaders, staying competitive will require pushing for more learning initiatives within the organization, facilitating upskilling opportunities for their employees while providing and participating in leadership training. Professionals and leaders alike should embrace a growth mindset, a commitment to upskilling by acquiring or improving technical skills, tracking industry trends, and gaining advanced certifications."

By continually updating skillsets and knowledge bases, employees can stay ahead of industry developments and best practices. Upskilling opportunities also help employees feel valued and engaged, which is reflected unmistakably in their customer interactions.

Benefits of Continuous Learning

A learning environment that encourages and supports continuous professional development begets employees who are more confident and competent. They are averse to stagnation and are more likely to innovate and adapt, qualities that are increasingly prized in an industry impacted profoundly by digital disruption and shifting consumer behaviors.

Cultivating a Culture of Learning

Creating an organizational infrastructure where learning is woven into the fabric of daily operations requires concerted effort. Formalized mentorship programs, cross-functional training, and incentivizing participation in external educational opportunities can foster a culture where growth – personal and professional – is an expectant norm.

Master Your Employee Training Program

Employee training is not just a luxury for financial institutions. It's imperative to stay competitive and adapt the branch to the needs of today's customers.

Organizations that recognize this will be best positioned to offer customers and members excellent services and a memorable financial experience.

To learn more about how you can improve employee training at your financial institution, don't miss Future Branches 2024. It's happening June 24 - 25 at the Westin Copley Place in Boston, Massachusetts.

Download the agenda and register for the event today.