Pub. 10 2019 Issue 4

Winter 2019 15 West Virginia Banker You thought, “I’ll never have to write an essay or go to school ever again!” Of course, we were wrong. Upon entering the workforce, we realized that learning is even more important now than it was back in the dorm room days. We were in the workforce but lacked the skills to negotiate our first salary, present in front of a large crowd, or even how to budget and invest for the future. So, we went back to the classroom. We discovered that learn- ing something new not only helps the brain function more effectively, but improves focus, overall confidence and self-es- teem. It is also a great way to get social, meet new friends and expand our professional network. Surely, this short trip down memory lane helps you to under- stand why personal and professional development is at or near the top of the motivators for young bankers. Now, let’s look at why continuing education helps the company as well as the individual. The financial services industry is being shaped by many dynamic forces. These are the same forces that are affecting every industry today. Some of these are speed, technology, globalism, complexity, connectedness, uncertainty, risk, prox- imity and customization. How are we to keep up? Let’s look at these within the context of three overriding themes — structure, reciprocity and trust. This will help us model the changes in financial services. Structure — information delivery systems and communications tools will continue to evolve at an amazing pace. More people than ever will have access to financial services. Transactions will occur at an unimaginable speed across global distances. We will become more and more interconnected. The importance of financial intermediaries may become diminished. These changes bring not only new opportunities but new vul- nerabilities. How do we mitigate cyber-risks and market risks? Reciprocity — banks enjoy certain public operating benefits. These include deposit insurance and access to the Discount Window. Does “too big to fail” sound familiar? With these benefits come decisions and behaviors to heighten our regard for others. This is the element of reciprocity. Other industries do not have this safety net, and not as much is expected from them. Surely, this short trip down memory lane helps you to understand why personal and professional development is at or near the top of the motivators for young bankers. Now, let’s look at why continuing education helps the company as well as the individual. Trust — keeping your word. Financial services are becoming more commoditized. Are we dealing more in products and less in relationships? Does that change the perceptions and realities of trustworthiness? How do we prevent more Wells Fargo type mistakes? Finance is complex. It requires trust in the professionals who provide these services. We market ourselves as dealers in trust. We must meet the legitimate expectations of trust- worthiness. People entrust the financial system with their hard-earned wages, their nest eggs, and their children’s and grandchildren’s college tuition. The future of the banking industry depends critically on keeping and restoring trust, reaffirming the reciprocal rela- tionship of finance and society, and ensuring our structures are stable and resilient in the face of crisis. We must learn what the consumer wants not only in terms of commodities and services but also in values and quality. There are many skills needed to cope with this changing en- vironment. At the top of my list is to have the knowledge and confidence to “spot an issue.” We need bankers who do not overlook warning signs, who can identify the risks and speak up at the right time. Bankers need the ability to resolve difficult situations caused by: • conflicts in values, • transitions in leadership, or • interactions with regulators. Ethical decision making must not be a stand-alone course but must be integrated into every course of study. There are many forces that create the need for continuing education. Cybersecurity has already been mentioned as an area for greater expertise. Regulatory changes create a need for learning. Compliance, capital, and liquidity management and risk management are just a few areas of new emphasis. Where can a banker find educational opportunities? As mentioned above, your state association is a wonderful first step for the young banker. Your state banking school offers Continued on page 16