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Game Based Learning

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Game Based Learning

The uptake of digital and experiential training programmes has accelerated in recent years in the financial services sector, with an increasing number of companies are taking up game-based learning initiatives, including Banco Santander and Deutsche Bank. By bringing new, interconnected structures of learning, for example through film and storytelling techniques, and by bringing learner autonomy to the forefront, does gamified training lead to better, longer-term retention of knowledge and skills?

With reportedly high completion rates amongst participants, as well adaptive learning pathways that are tailored to learners needs, game-based learning is one solution being used to educate professionals on pressing topics like cybersecurity. The ever-evolving nature of the challenges faced by companies in the digital age requires staff to be well-informed, confident, and competent around cybersecurity and the associated day-to-day risks, which in turn requires solid in-house or external education that is fit for the future.

According to one provider of gamified training based in Germany, Arc Institute, “Game-based learning refers to the use of leveraging the inherent excitement and stickiness of a game environment as the framework for an educational course. To be effective, participants must develop real life knowledge and skills while immersed in an entertaining and addicting game.” Arc Institute make the case for the use of game-based learning in the finance sector as follows:

  1. Learning must be fun! – More engaging learning yields more motivation.
  2. On demand – For you to choose, anytime, anywhere, at your personal learning speed.
  3. Technology is a game changer – Technology permits global learning in multiple languages.
  4. Experiential learning – Instant takeaway of knowledge for use in the workplace.
  5. Content – the teams of the future require changing competencies.

They also give examples of the different ways in which Serious Business Games can be implemented as part of a wider education and training offer:

  • as independent training for employees;
  • as Blended Learning, preceding a training course;
  • integrated into an on-site training, i.e. methodical input alternates with live training in the simulations of the Serious Business Games. Individual scenes can be discussed together and thus direct learning effects can be developed.
  • live business game conventions, such as company championships, virtually decentralized or jointly on-site;
  • individually designed business games for a unique business context.

Serious Business Game trainings are reported to have been successful in certain contexts; however, to be effective they are often used alongside other learning programmes and tools, especially taking into consideration different skills, levels, varied learning styles, and of course the broad range of personalities and learning preferences within a company’s staff team. The longer-term impact of such training programmes is perhaps yet to be seen, but what seems certain is that providing innovative learning environments, fostering creative and critical thinking alongside more technical skills, and taking student-centred approaches are necessary to train the workforce of the future.

Strategic reflections

  • Adapting to the digital landscape and embracing new technologies, platforms, learning environments, tools and training programmes – including but not limited to Serious Business Games – could support companies’ efforts to upskill and reskill.
  • As with any training offer, quality is key, and with a growing number of courses and providers it is crucial that firms assess the quality and impact of game-based training offers.
  • EBTN and other global education and training networks could further investigate the impact (and potential) of game-based learning in the sector for the future, especially in areas of strategic, international importance, like cybersecurity and resilience.

Sustainable Finance

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Sustainable Finance

Forward-looking financial market structures require strategies to support the transition to a climate-friendly, sustainable, global economic and financial system. Achieving the Sustainable Development Goals, implementing the Paris Agreement, and successfully integrating ESG into banks and financial institutes, will depend upon the commitment of individuals, companies, and policymakers alike. EBTN and other global networks support this by exchanging knowledge and best practice in Sustainable Finance to fundamentally shift the way that the finance sector operates.

Whilst ESG is increasingly in the political spotlight, research from the European Commission finds that “the pace of implementation to achieve effective ESG integration within risk management, prudential supervision, and business strategies and investment policies needs to be accelerated. Collaboration between all stakeholders will be required, including sufficient supervisory guidance and engagement, and cross-bank collaboration.”[1]

This highlights the growing need for high-quality education and training in the field of Sustainable Finance to an appropriate level, with opportunities for employees in the banking and financial services sector to upskill and reskill in this area through flexible study and training programmes, for example through micro-credentials.

Alongside adequate and impactful training and education, there is a great need for a common language and understanding on how to drive change in the sector, but also practical, tangible, and clear tools that support stakeholders to turn policy into practice. In Europe, the EU taxonomy and sustainable finance framework form a key part of that toolkit, as they help direct investments towards economic activities that are in line with the aims and objectives of the European Green Deal.

In June 2023 the European Commission renewed and simplified its package of measures to bolster the sustainable finance framework and to support companies that are facing challenges with the new disclosure and reporting requirements.

Amongst other measures, the package aims to improve the reliability and transparency of ESG ratings activities via new organisational principles and rules, especially around preventing conflicts of interest, so that investors can make well-informed, sustainable investments. A challenge and priority for the sector going forward will be to ensure that banks, companies, and staff teams grow in their confidence and capacity to operationalise the policy.

Strategic Reflections

  • Sustainable finance regulation and ESG integration in banking business are becoming increasingly important and relevant.
  • The EU-Taxonomy is a significant development in sustainable finance, and it can help create a common language and standard for sustainability in financial products and services.
  • There is a need for education and training to develop ESG competencies in banks as the financial sector has an important role to play in the green transition towards a more sustainable future.
  • There is a need for practical tools, so that ESG risks and opportunities can be integrated into the decision-making processes of financial institutions to ensure long-term value creation and risk management.

[1] European Commission, Directorate-General for Financial Stability, Financial Services and Capital Markets Union, Development of tools and mechanisms for the integration of ESG factors into the EU banking prudential framework and into banks’ business strategies and investment policies : executive summary, Publications Office, 2021, https://data.europa.eu/doi/10.2874/70559

Cybersecurity

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Cybersecurity

As companies around the world focus on how to best make use of new technology to enhance their business and training programmes, EBTN members aim to learn from and guide each other through this transition. Here we consider some of the latest opportunities, innovation and challenges brought about by digital transformation in the banking and finance sector.

From the policy-making perspective, and in particular looking at the Digital Operational Resilience Act, the overall ambition remains to embrace digital finance for the benefit of consumers and businesses, with the aim of building a Europe fit for the digital age.

Great consideration is also given to the current and emerging threats to security: “In the digital age, information and communication technology (ICT) supports complex systems used for everyday activities. It keeps our economies running in key sectors, including the financial sector, and enhances the functioning of the internal market. Increased digitalisation and interconnectedness also amplify ICT risk, making society as a whole, and the financial system in particular, more vulnerable to cyber threats or ICT disruptions.”[1]

According to the European Banking Federation, changing business patterns, operators and risks raise questions on the suitability of the regulatory framework, for example:

  • Is it the entity or the activity regulated?
  • Do we need a mix?
  • Do we need to make a distinction between the players?
  • How to ensure cyber resilience for the interconnected actors?

This comes in addition to “traditional” regulation on consumer protection, prudential regulation, and financial stability. The cyber threat landscape is constantly evolving, from ransomware, DDoS and phishing/smishing/vishing attacks to more advanced, persistent attacks, which brings about the need for individual institutions to assess their cybersecurity practices and policies to ensure their resilience.

With company staff acting as “the human firewall”, it is vital that employees are effectively trained to manage security in their day-to-day work. This might entail, for example, being alert to unusual requests and tempting offers.

It is also vital, however, that employees fully comprehend their role in strengthening the security system of the entire organisation, and perhaps even how this extends beyond the boundaries of their own company, to the broader call for combatting cyber-attacks within the sector: “Member States have come to agree on the need to increase cooperation and make joint efforts to develop a common approach meant to strengthen the European cyberspace.” Juhan Lepassaar, Executive Director, European Union Agency for Cybersecurity

Strategic reflections

  • It is important to review and also to question the regulation and policy landscape in order to better understand how new technologies are being rolled out and monitored in different regions globally, and how some of the associated risks, especially around data protection and cybersecurity, are being mitigated.
  • Collective and systemic approaches to solving issues around cybersecurity and resilience are increasingly required to combat new and evolving security challenges in the sector.
  • As a global network, EBTN has a role to play in sharing best practice and continuing to collaborate with policy-oriented organisations like the European Banking Federation to keep its members informed of the latest developments

[1] Regulation (EU) 2022/2554 of the European Parliament and of the Council of 14 December 2022 on digital operational resilience for the financial sector and amending Regulations (EC) No 1060/2009, (EU) No 648/2012, (EU) No 600/2014, (EU) No 909/2014 and (EU) 2016/1011 (Text with EEA relevance), http://data.europa.eu/eli/reg/2022/2554/oj

Micro credentials

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Micro-credentials & Blockchain

In line with the European Skills Agenda, banks and other financial services firms have a crucial and pivotal role in supporting consumers and businesses across Europe in the transition to a green economy, which must be enabled by cutting-edge knowledge and skills. Not only do micro-credentials offer quick and flexible responses to meet demand, but also the possibility to target new markets or groups that may not otherwise make the financial investment or time commitment to more traditional education programmes.

Micro-credentials can help employers to address substantial skills gaps, especially in the field of Sustainable Finance, by supporting staff to acquire new skills and competences to sustain their career and be able to compete for jobs of the future. In the European banking and financial services sector, there is a high demand for flexible and specialised skills, especially in view of rapid digital transformation.

At system level, there is a growing need for an ecosystem for micro-credentials in financial services in Europe to provide straightforward access to acquiring future skills and competences with transparent, transportable, quality assured education.

By exploring the development of micro-credentials in the field of ESG, as well as a certification system for ESG-related micro-credentials, networks like EBTN could significantly contribute to the shift towards a more sustainable economy, and to ensure that the professional skills and competencies acquired through credentials are of high quality and relevant to the needs of the green economy.

To ensure accessibility and inclusiveness for a wide range of beneficiaries, blockchain is also an important technology that has the potential to revolutionise skills development within the finance industry. By providing technology for the verification, storing, and sharing of credentials, blockchain ensures the quality and portability of skills acquired through micro-credentials, thereby fostering mobility and employability.

Strategic reflections

  • The European Commission has a vision for micro-credentials in 2030, which could help in the recognition of lifelong learning and contribute to the development of human capital. Micro-credentials provide opportunities and challenges, and they are linked to the European Skills Agenda and priorities.
  • Micro-credentials can enable the development of enterprise-relevant skills and provide an alternative to traditional academic qualifications. Banking institutes need to respond strategically to the rise of micro-credentials, and they should consider the relevance of banking education in this context.
  • Blockchain is an important technology that has the potential to revolutionize various industries, including finance, and there is a need for education and training to prepare for the future of blockchain.
  • Digital Euro is an emerging concept that could potentially transform the landscape of payments and money transfers.

If you are interested in following our work in this area, please follow our Sustainable Finance Committee.

Future Skills

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Future Competences and Skills

The Covid-19 pandemic has further accelerated the need for digital training, creating a talent recruitment and retention challenge for many businesses in the global banking and financial services sector. With the half-life of skills estimated to be only five years, an estimated 120 million workers across the sector will need to upskill or reskill.

As AI and other digital developments have become increasingly accessible and embraced, the sector has seen an increase in demand for lifelong learning. Whilst there is a proliferation of training and courses available, one of the principal challenges that employers and individuals face is identifying high-quality, affordable, and impactful training that effectively addresses skills gaps.

To help organisations and learners to navigate this landscape, and to create a collective understanding of the skills required for future success, international players like the Financial Services Skills Commission (UK) have designed a Future Skills Framework, which provides alignment on skills definition and proficiency levels across the finance sector. By creating collaborative relationships and building networks, the Commission aim to create a system-wide response to the skills and talent issues that many businesses currently face.

Similar trends can be observed internationally. In Ireland, for example, the IOB are also working towards an Irish Financial Service Skills Framework as well as offering tools like the IOB Skills Accelerator, which helps professionals to assess their skills, identify learning pathways, and progress in their careers. Future Skills Frameworks not only identify skills gaps but can also point towards appropriate and quality-assured learning opportunities, for example relevant micro-credentials.

If the sector is to effectively address talent recruitment and retention challenges, investing in lifelong learning is key. As outlined in Continuous Learning – the Most Important Skill in the Workplace, Tarja Kallonen posits that “Learning is just as natural, normal, and wellness boosting as walking and taking care of your health and fitness,”. Lifelong learning is driven by the desire to develop, acquire new skills and find purpose. Not only does it contribute to employee satisfaction, but research demonstrates that those actively engaged in continuous learning are 25% more productive in their jobs.

Whilst continuous learning is increasingly valued by management, with many firms including it in their strategic planning, there is a need for further collaboration between companies and educational institutions to enable employees to adapt and thrive in their careers.  Future Skills Frameworks and tools are one way that businesses in the financial services sector can support their staff to develop.

Strategic reflections

  • Employees who are motivated to learn are more productive and should be supported in their endeavours to develop and progress in their careers.
  • As people take more control of their careers and invest in themselves, smaller learning modules and units, such as micro-credentials, are more in demand.
  • With many different training options, there is a growing need for tools to help employees navigate the training and education landscape to find high quality offers and resources.
  • Skills and competence frameworks support organisations to identify skills gaps whilst also giving learners a sense of control, thus reducing uncertainty and fear in the industry.
  • EBTN has a role in showing learners what the future could look like and what competencies are needed.