Simulation Training and How It Can Improve the Finance Industry

Designing Digitally


Simulation Training in Finance Industry

It is a known fact that you learn much better through application. Although, it may not always be possible to learn on-the-job. Hazardous jobs, may not provide the luxury of making mistakes and learning from them. One mistake may have grave consequences for the employee as well as the organization.

So, what do you do in such a scenario? You certainly cannot let your employees remain unskilled. You also cannot let them depend on the trial-and-error method of learning. This is where simulations can help in training and offers several advantages.

Simulation-based training offers hands-on experiences to learners. This training replicates their job environment in the virtual world and allows them to put their skills into practice without the fear of what can happen if they fail. Since it is in the virtual world, even if they fail or make a mistake, there will not be any real-world repercussions. Simulated training is apt for almost all industries, especially hazardous ones. Let’s explore how it serves the finance industry.

Training Simulations in the Financial Sector

The financial industry is extremely competitive. Thus, it is important that compliance and processes are consistently updated. To ensure this, large financial companies are open to technological advancements in learning and are using simulations for training in order to gain a competitive advantage. Here are some ways in which they are leveraging the power of learning simulations.

#1: Onboarding

Day 1 on a new job can be emotionally taxing for new hires. They are new to the job as well as the organization. To provide them with a great experience on the first day, consider using simulations. It allows them to explore their new surroundings and try their hand at their job role without the fear of messing it up. Use realistic images and sounds to make the atmosphere feel genuine. That way, they can identify with the environment better. In client-facing roles in the financial sector, it is important for the employee to have a good understanding of the products and services offered. A well-designed simulation can go a long way in keeping the employee engaged and invested.

#2: Skill development

Many financial service roles require employees to have detailed product knowledge, especially the ones that are in the call center. In operations, they need to handle multiple queries at the same time, multi-tasking between six to seven screens at one time. These tasks require regular practice and there is little room for mistakes. A simple error in the process can have a negative snowballing effect. Simulations help the employees practice these skills and perfect them. This goes a long way in boosting the confidence of the employees.

#3: Negotiation and selling skills

Employees who have client-facing roles need to hone their negotiation, selling, and communication skills. It is one thing to read about tips on how to improve these skills, and another thing to be able to practice it. A role-play simulation is perfect for this situation. The employee interacts with a character and tries to resolve its queries. There can be a set of questions for every learning objective. The learner completes each step and proceeds to the next level. It is a good idea to assign a mentor who will provide relevant feedback.

#4: Mastering new tasks

When employees are expected to master new tasks in a short while, training simulations are the best way to go. They learn about the tasks and apply them at the same time. They also receive instant feedback that helps them to gauge their performance and better it. The reporting and analytics features go a step ahead in providing performance-related metrics to the managers. They can offer additional support based on metrics and ensure that the organization’s standard is met.

#5: Ensuring compliance

Good compliance is a must in the financial sector. Malpractice, such as money laundering, is a punishable offense and attracts huge fines. With the launch of new legislation in the Fintech environment, financial corporations need to reassess their processes and ensure that they meet relevant standards. The employees need to be upskilled fast in order to remain up-to-date in the areas of bribery, money laundering, and so on. Simulation training is the best fit for such kind of training because it is engaging and helps your learners to learn faster and retain better.

#6: Arresting employee churn

The cost of replacing existing employees is $7,500 or more at the junior levels. The higher the position, the more expensive it becomes to recruit. You may end up paying as high as $31,000 when trying to replace a mid-level finance manager. Since the modern workforce cares a lot about learning and upskilling opportunities, you cannot take chances with them. You must ensure that you provide employees with ample training and development that will keep them motivated. Simulations offer a highly engaging learning platform for them.

The financial sector is transforming with the rapid changes in technology. This industry is expected to progress at an even faster pace. If you are working in this sector, you need to keep upskilling yourself to remain competitive. And, what better way than training through business simulations!

At Designing Digitally, Inc. our experts have been creating custom training simulations for decades. The simulated learning experiences range from 2D simulated solutions to 3D experiences. Our instructional design team ensures that the solution presented to learners is effective, immersive, and allow for consequences to happen within the simulation, and not on the job.

If you are interested in learning more about simulated learning and how it could be used to train your workforce, talk with our team or request a free quote today.

Related Resource: Training Simulations Create Success for Corporate Education White Paper