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eLearning in Financial Services: A Case-Based Analysis June 2003 Author:  Eilif Trondsen About This Report Table of Contents   Download the full report About This Report Past and current dynamics in the financial services industry are requiring new and innovative learning and training solutions to meet both strategic and operational business and learning objectives. The traditional ways of operating no longer meet current and future needs and objectives. And simply converting traditional courses for Web-based delivery is not likely to be a sufficient solution to meet the varying needs of financial-services companies (FSCs) and their employees. Designing and implementing successful eLearning solutions is not quick and simple. Organizations that fail to recognize the complexities and fail to take advantage of current best practices and lessons from other financial services companies around the world will likely waste both financial and human resources and pay a costly penalty at a time when shareholders have little tolerance for failure. In industrialized countries, the financial industry is a large and highly knowledge-intensive business that has seen dramatic change in the past decade. Regulatory changes, competitive dynamics, and the accelerating impact of information technology (IT) are all changing the way the industry does business. On the demand side, consumers, industry, and government need and demand new types of products and services. These forces of change and pressure have affected both the structure and the operation of financial-services companies all over the world, and, not surprisingly, they are prompting significant changes in learning and training. This report presents six case studies from European, Canadian, and U.S. institutions of different sizes—two cases for each of the three sectors of banking, insurance, and securities—to illustrate the range of technology-based learning solutions that progressive FSCs are implementing to meet both strategic and operational business and learning objectives. To give managers and executives a proper perspective on current and future eLearning developments, the report places the in-depth case studies in a contextual setting by providing: Conceptual frameworks. These frameworks clarify how one must see eLearning as going far beyond simple Web-based courses delivered to internal staff, and they recognize that technology-based informal learning can be an important component in the overall learning solution. Learning programs must also increasingly extend to customers and business partners if they are to yield maximum effectiveness. Analysis and evaluation of key issues and trends. The report describes and examines six major issues and trends that will affect the future of the financial-services industry and influence the extent and nature of eLearning adoption. Sector and player performance. The report provides a ranking of key players in global markets as well as financial and operating performance of the top players to put eLearning in context. It also includes eLearning adoption and practices among some of the FSCs in North America, Europe, and Asia in each section before it discusses the case studies. We welcome feedback about this report and the program, and we encourage you to contact us with any questions or suggestions. For more information, contact Eilif Trondsen, director, Learning-on-Demand (LoD) Program; telephone: +1 650 859 2665; fax: +1 650 859 4544; e-mail: etrondsen@sric-bi.com. We appreciate your support of our program and look forward to working closely with you as a Learning-on-Demand sponsor. Table of Contents OVERVIEW 1   eLearning for Strategic Advantage 4   Tactical Needs and Solutions 8   Key Issues in the Financial-Services Industry 13     Globalization 14     Consolidation 15     Convergence 15     ICT Investment and Use 16     Innovation and Knowledge Focus 17     Outsourcing 17 BANKING 18   Industry Context 19   eLearning Adoption and Practices 21   Case Examples 25     Royal Bank of Canada and Bank of Montreal 25     Gjensidige NOR 34 INSURANCE 40   Industry Context 40   eLearning Adoption and Practices 43   Case Examples 44     Sun Life Financial 44     Skandia AB 50 SECURITIES AND INVESTMENT BANKING 56   Industry Context 57   eLearning Adoption and Practices 59   Case Examples 60     Charles Schwab 62     Merrill Lynch 66 FUTURE PERSPECTIVE AND ACTION STEPS 71   Future Demand 71   Action Agenda 74     Financial-Industry Adopters 74     eLearning Developers 74   Tables LMS/LCMS Adoption in Financial-Services Companies (FSCs) 8 Selected Vendors of eLearning Content for Financial-Services Companies 10 User-Friendly eLearning Authoring Tools 12 Virtual-Classroom Adoption by Financial-Services Companies 13 Top Ten Global Commercial and Savings Banks, 2001 19 Financial Performance of Selected U.S. Banks 20 Big Five Canadian Banks: Selected Statistics 25 Bank of Montreal Learning Profile 29 Profile of GN's eLearning Program 35 Top Ten Global Life and P/C Insurance Companies, 2001 41 Financial Performance of Selected U.S. Insurance Companies 42 Profile of Learning and Knowledge at Sun Life Financial 47 Sun Life Financial's Knowledge and Learning-System Framework 48 Top Ten U.S. Securities and Investment Banking Firms, 2001 58 Financial Performance of Selected U.S. Securities and Investment-Banking Firms 58 Profile of Charles Schwab 63 Schwab eLearning Tools and Products, 2001–02 65 Profile of Merrill Lynch 67   Figures Key Drivers of Change in the Financial Industry 1 Employment in U.S. Financial-Services Industries, 2001 2 Beyond Course-Based, Formal Learning and Training 5 Stages of eLearning 6 Evolution of Electronic-Business Functionality 7 ING: Innovative Online Brand Building and Customer Learning 23 Intensifying Competition in Consumer Finance 24 A New Paradigm for Learning at Royal Bank of Canada 27 Bank of Montreal’s kCafé 32 Gjensidige NOR’s Learning Model 37 Clarica and Sun Life Merger 46 Skandia's Competence Exchange: The Global Platform 52 The Rise and Decline of Skandia 54 Merrill Lynch's eLearning Offering 70 eLearning-Adopter Segments 73 Organization for an Opportunity Search 75   Boxes eLearning at Deutsche Bank 33 Customer-Education Project for Electronic Billing 38 eLearning Adoption at NTUC Income in Singapore 44 Online Communities at State Farm and Prudential 55 Reuters: Staying the Course 61 Best-Practice Lessons from HP's "NonStop U" 76

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