Training in the banking sector key in boosting performance
By: Rading Biko
Posted on Thursday, December 23, 2021
Every banking professional cannot thrive in the sector without formal profession[1]al training to comprehend the ever-changing demands of the industry.
The industry across the globe is one of the most progressive sectors of any economy because it is the conveyor belt for the exchange of money.
Professional training is therefore essential to the understanding of the dynamics of this complex process of moving value from one corner of the world to another in a seamless, legal and professional manner.
Without continuous professional development, a banker who is only exposed to the work environment in which he has been deployed, is most likely going to stagnate and comprehend the trade only through internal orientation, which is often biased to the models of one individual banking entity.
Continuous Professional Development ensures the banker is exposed to the broad range of factors, mechanisms and functional models that are at play anywhere in the world at any given time throughout the banking and financial industry.
The Kenya Institute of Bankers [KIB], has been at the forefront in offering professional training and certification to stakeholders in the financial sector in Kenya and beyond.
Since its inception, over 40years ago, KIB has been at the forefront to develop and deliver effective development programmes which address the current and future needs of the banking and financial sector.
These programmes are offered either as bespoke in-house programmes or as open programmes and conferences in which we invite participants from various financial services institutions. KIB is also in the process of converting the delivery of the programmes to fully virtual platforms in line with our digitalization agenda.
At the heart of KIB’s professional development journey is Integrity and Ethics. For one to be a high-level professional in the financial sector, it is expected that they will display Knowledge, Skills and Behaviour at equally high pro[1]portions without integrity there would be no sustainability in the sector. First, financial institutions need a strong base of integrity in their employees.
Whether it’s a bank, a Microfinance institution or a SACCO, successful operation of a financial company depends on the moral compass of those involved. For example, to generate a profit, a bank needs to operate on the basis of the most accurate and helpful information possible. Banking is a business based on trust.
From a customer’s perspective, trust is based on the belief that the financial institution will handle their business with integrity in other words, if customers think they can’t trust you, they won’t keep their money with you. In the immediate past the personal banker was the face of the bank and the main person building trust with customers.
Presently, brick and mortar banks are fast disappearing and instead of dealing with the personal banker, customers are asked to handle almost all their banking online. This paradigm shift requires banks to keep a flawless reputation because every blemish has the potential of a destructive effect on the trust customers have placed in you.
Trust isn’t just about the one-on-one interaction between the bank and the customer. Customers are sophisticated and well informed to also look at your general conduct in the society in which you operate.
The preference is in dealing with ethical institutions with firm groundings on integrity. It is expected that at every level, decisions are made in the best interest of the Customers, the Institution as a whole, rather than based on the desires of one employee’s personal preferences and following strict adherence to the Letter and Spirit of the Laws and Regulations of the land.
When greed and dishonesty prevail, financial institutions eventually go bankrupt. We define integrity ‘as the quality of acting in accordance with the generally accepted moral values and norms’.
The major integrity risks include ‘fraud and theft, money laundering and financing terrorism, and mis-selling to customers’, while risks pertaining more to the corporate banking business include ‘manipulation of markets, insider trading, and moral hazard’.
We thus advance the view that integrity as a crucial component of banking, helping to generate the trust so vital for a financial system to thrive.
Integrity at work in the financial industry is a crucial way for qualified employees to distinguish themselves and move up in the company.
Employees that work hard whether they are being observed or not, and whether they think they will be given credit or not, will eventually be recognized. Integrity is a vital leadership quality that recruiters look for in potential leaders because it is infectious.
A leader who helps others, acts in the best interest of the company, does the job the way it should be done and practices honesty will have a positive effect on the entire work environment. Integrity is one of the most directly valuable qualities of a leader.
It is expected that the leaders in the financial services sector must be role models in showcasing integrity in all their dealings. Integrity goes beyond what is done in the office only, it should define how we always interact with others.
Opinion written by Mr. Julias Alego, Chief Executive Officer, Kenya Institute of Bankers.
