As Japan approaches the end of eight years of negative interest rates, the Bank of Kyoto takes proactive steps to equip its staff with the necessary skills and knowledge for operating in a positive interest rate environment.
The regional lender recognizes the significance of this transition and initiates e-learning programs to train employees who lack experience in lending and deposit collection under positive interest rates.
Bank of Kyoto’s e-learning sessions, targeting approximately 3,300 employees, delve into the fundamentals of interest rates, lending rate dynamics, and the implications of rising interest rates on the bank’s operations and clientele.
Experienced executives share insights from past experiences with positive interest rates, offering invaluable expertise on clearing the challenges and persuading borrowers amidst rate hikes.
Intensified Competition and Customer Communication
The e-training also addresses the intensifying competition for deposits, previously viewed as liabilities in an era of abundant liquidity.
Practical guidance is provided on effectively communicating with customers to explain the impact of rising lending rates and to encourage increased deposits.
With sessions tailored for smartphones and lasting about 30 minutes, the training aims to engage younger staff and prepare them for the shifting phase.
Importance of Readiness and Mindset Shift
Tadashi Shimamoto, Deputy General Manager at Bank of Kyoto’s human resources and general affairs division, emphasizes the necessity of staff readiness and mindset shifts in anticipation of positive interest rates.
With inflation surpassing the Bank of Japan’s target, the central bank is poised to lift short-term interest rates from negative territory, necessitating adjustments in planning and operations for lenders and borrowers alike.
For the Bank of Kyoto’s younger staff, the transition to positive interest rates marks a significant shift in their professional areas. With interest rates remaining stagnant at zero throughout their careers, they now face uncharted territory as rates prepare to rise.
The e-learning initiatives serve as a crucial tool for preparing employees to pass this unfamiliar terrain and adapt to the challenges and opportunities it presents.
