Enabling your competitive advantage: Learning is the difference
between leaders and laggardsYour teams expect, and deserve, ongoing learning opportunities. Here’s how learning solutions
help upskill your workforce, improve customer experience and more.
In today’s rapidly evolving financial landscape, lenders and banks face numerous challenges that require a proactive andadaptive approach. To stay competitive and navigate these challenges successfully, investing in upskilling employees iscrucial.

Agility and resiliency are more important than everBanks and credit unions are facing an increasingly complex operating environment that is dominated by rising interest
rates, inflation, threats of recession, increased regulatory scrutiny and tightening credit. Yet they must still look to create
new revenue and growth opportunities.
Learning programs equip employees with the skills to adapt to changing market conditions, navigate economicvolatility, and remain resilient in the face of disruptions. By accessing industry insights and important skills, employees
can make informed decisions, assess risks more accurately, and capitalize on emerging opportunities.
Confident workers are better able to navigate new processes and challenges. They approach tasks with more up todate knowledge. Equipped with training, they are better placed to provide guidance through every financial interaction,
eliminating bottlenecks and reducing frustrations for multiple departments along the way.

Your people are your competitive advantage
Customers expect personalized experiences, seamless digital interactions, and innovative financial solutions. This means
banks are now competing with a broader set of digital-native peers for customer attention.
According to McKinsey, digital disruptors could put 10% to 30% of bank revenues at risk. To stay relevant andcompetitive, banks are embracing transformation initiatives to enhance operational efficiency, optimize processes, andimprove customer experiences. But these initiatives cannot focus on technology alone: fostering a culture of innovationand empowering employees to develop creative solutions will better position banks to compete.
Tap into your talent to innovate and find new revenue streams. Learning programs that foster a culture of continuous
learning and innovation empower employees to support the bank or credit union’s strategic growth plans. They cangenerate novel ideas, develop new products and services, and explore market niches, leading to diversified revenue
streams and business growth.
Confident, competent bankers can be the trusted advisors your customers need. Bank customers aren’t just looking
for technical competence; trusted advisors establish and maintain deeper, more profitable relationships, and drive betterbusiness results. The best learning solutions emphasize customer-centric skills, enabling employees to understand andmeet evolving customer expectations, resulting in improved customer engagement, satisfaction, and loyalty.

Retention is key to winning the talent war
The move to hybrid working and increasing competition from the technology sector have made it increasingly difficult
for financial institutions to attract and retain talent. In fact, a Deloitte survey found that 65% of financial services
organizations expect a worker shortage over the next two years.
With mounting pressure to fill critical roles, employers across all industries are turning to their current workforces to help
them achieve their goals. Fortunately, employees are ready and willing: According to PwC, 40% of employees successfullyincreased their digital skills during the pandemic and 77% are ready to learn new skills or completely retrain. This is goodnews, as it is costly to replace industry- and business-specific expertise.
Reducing employee turnover reaps rewards. Today’s dynamic landscape means organizations need agility to adapt.
This includes the ability to redeploy resources, whether financial or people, where and how they need to. Minimizing
turnover can help protect budgets, while ensuring the retention of valuable institutional knowledge to prevent criticalgaps during times of transition. Moreover, data shows that training programs that help develop skillsets in new areas
are critical for driving retention. A recent survey found that 94% of employees indicated that if a company invested inhelping them learn, they would stay longer.
A culture of continuous learning can help attract and retain top talent. Your top performers are looking for growth,
whether that is learning new skills or seeking advancement. Opportunities to learn are seen by your employees as aninvestment in their professional development. It boosts confidence, job satisfaction and overall engagement. Whenemployees feel valued and equipped with the necessary skills, they become more motivated, productive, and likely toremain with the organization.
Social learning opportunities help address remote working challenges, generate team and organizationalcohesion, and foster collaboration. Hybrid working is seen as essential by many top talents and is here to stay. But
it is not without challenges: new hires may find it difficult to integrate, collaboration may not happen organically, andMOODY’S ANALYTICSENABLING YOUR COMPETITIVE ADVANTAGE

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innovation can be stifled without proactive focus. Innovative social learning experiences can bring teams together
across geographies and time zones, helping to bridge the gap that hybrid working has inadvertently created.

Learning is the difference between leaders and laggards
Investing in learning is good for business. According to a study by the Association for Talent Development (ATD),
companies that invest in comprehensive training programs achieve higher revenue per employee and higher grossprofit margins compared to companies with lower investment in training.
On the other hand, the impacts of a lack of investment can be far-reaching:» Obsolete Skills: Employees with outdated skills may struggle to adapt to new technologies and changing
market dynamics, hindering productivity and the bank’s ability to innovate and remain competitive.
» Compliance Risks: Failure to upskill employees on evolving regulatory requirements increases the likelihood ofcompliance breaches, resulting in reputational damage and financial penalties.
» Talent Drain: Banks that neglect upskilling risk losing top talent to competitors who prioritize employee
development and growth opportunities.
» Declining customer satisfaction: Failing to meet evolving customer expectations can result in customer
churn and reputational damage.
By prioritizing employee development for a more resilient, more competitive, and highly engaged workforce, banks
can better meet their strategic objectives, customer expectations and position themselves for long-term success.

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To find out more information about Moody’s Analytics Learning Solutions
please visit https://www.moodysanalytics.com/about-learning-solutions

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