E-Learning in a Financial Institution

This paper examines how information technology is used in training. It also analyzes the consequences when a particular financial institution based in Barcelona starts to use new technologies to deliver a training program aimed at providing basic knowledge of the business to new employees joining the branch network throughout Spain. From our study, we conclude that there is great potential in the use of new technologies in training. They are being used to exchange (deliver and receive) the course materials, including syllabus, tasks and theoretical content, and as a means of interaction between participants and teachers, and among participants. However, implementing such an online communication system is not very easy, for instance, developing virtual communities of formal and non-formal learning, obtaining adequate course coherence when combining face-to-face and virtual learning, creating virtual courses based on real cases, and having in-house employees as on-line tutors. Introduction Over the last four decades, globalization, deregulation and other changes in the environment have changed the competitive structure of markets. In this new environment, firms are more aware than ever that their survival depends on their capacity to respond rapidly to the environment’s opportunities and threats, and that this capacity lies in their employees. This is why firms need their employees to continuously acquire new knowledge and skills, and develop their individual capacities, in particular. Accordingly, firms have come to see learning and training as powerful competitive weapons and as an essential tools for adapting to the changing environment. Traditional training appears to be incapable of meeting these expectations, Hope and Hope (1997) state that training process is too long and covers too many subjects: it is unfocused, non-pertinent, non-adaptable to employees, or dated. Furthermore, when teachers and learners are geographically distant, it is costly to gather them in a single location due to travel and accommodations limitations (logistics, personnel-coordination, expenses etc.), as well as the loss of man-hours when employees attend training programs. Faced with this situation, firms are investing in new technologies in search of new learning models that will help to make their training programs more effective and less expensive. Previous studies (Arbaugh JB, 2000; Almeda & Rose, 2000) have shown some of the ways in which these new technologies can contribute to training. New technologies allow the delivery of training “anytime, anywhere”, through an effective and fast “just-in-time” mode (Masie, 1999) and taking into account the needs of employees. They can also bring improvements in content presentation and new ways of capturing the learner’s attention, as well as different ways Material published as part of these proceedings, either on-line or in print, is copyrighted by Informing Science. Permission to make digital or paper copy of part or all of these works for personal or classroom use is granted without fee provided that the copies are not made or distributed for profit or commercial advantage AND that copies 1) bear this notice in full and 2) give the full citation on the first page. It is permissible to abstract these works so long as credit is given. To copy in all other cases or to republish or to post on a server or to redistribute to lists requires specific permission from the publisher at [email protected] E-Learning In A Financial Institution 36 to develop perception, memory and comprehension. Furthermore, they allow learners to access documents in a non-linear way, without the constraints present in the use of textbooks (Shohreh & Garland, 2000). Up to now, there has not been time to study this issue through empirical research, taking different environments into account, because it is such a new issue and because advances in Internet technology are only just starting to allow the implementation of virtual learning environments. It is within this context that this case study undertakes to investigate a training program delivered to the newly recruited staff of a Spanish savings bank headquartered in Barcelona. The study describes and analyzes the outcomes resulting from the use of information technology in the design, development and delivery of training. The study begins with a short introduction to new technology-based training. The company background is presented and the different training methods it uses are described. Next, the training method traditionally used for new employees is studied and its constraints are pointed out. After that, the inception of the virtual campus is discussed and the program’s contents are described. The learning process on this campus is explained and the average participant’s profile is described. The tutor’s profile and duties are commented upon and interactions within the campus are explained, concluding with a discussion of course design and development. Lastly, an analysis of the most important issues covered in the essay is presented, ending with the conclusions. The Firm Caja de Ahorros y Pensiones de Barcelona (“la Caixa”) was founded in July 1990 as a result of the merger between Caja de Ahorros y Monte de Piedad de Barcelona, founded in 1844, and Caja de Pensiones para la Vejez y de Ahorros de Cataluña y Baleares, founded in 1904. One of its main purposes is to finance and support social, cultural, educational and scientific activities. 30% of the profits are used to finance this type of activities through the “Fundación la Caixa” foundation. la Caixa’s growth in recent years has been impressive, making it one of the flagship banks of the Spanish financial sector. The business model it has adopted, that of the “universal bank”, implies the ambition to offer the best and most comprehensive services to the largest possible number of clients. To do this “la Caixa” has three basic features. Firstly, management decentralization in the main and regular branches through having most of its staff assigned to sales activities, thus maintaining a ratio of central services employees to total workforce of 6.7%. Secondly, a branch expansion plan outside Catalonia and the Balearics, initiated 10 years ago, to give the bank a greater presence in the rest of Spain and so remove physical barriers and facilitate relations with customers (200 branches were opened and 1500 new jobs were created in 2000). Thirdly, intensive use of information technologies and communications to simplify administrative tasks, and the introduction of other channels to reach customers, such as Internet banking. Training Given its business concept and banking model, “la Caixa” regards its employees as the key factor for putting its service philosophy into effect. Accordingly, it places great emphasis on training. Two types of training are used: (1) Continuous education; (2) Programs for new employees. Continuous education is basic learning for those who have worked in the bank for several years. It is delivered face-to-face and in accordance with the needs of each main branch. Customized training is provided because every location is different, and has different circumstances. The program for new employees consists of basic training in the banking business and the products offered by “la Caixa”. It is delivered in a combination of face-to-face and virtual mode. The face-to-face lessons are in-