Imagine a world where...
Retail bankers are trusted professionals.
They are professionally educated, have passed challenging examinations and keep up to date through continuing professional education programmes.
Retail bankers are dedicated to doing what is best for clients.
Bank staff are well-educated and rewarded for the quality of service they provide over time.
Retail bankers abide by a strict code of ethics.
They place the interests of the customer before their own interests
The Retail Banking Academy® believes that retail banking should be a recognised profession like accountancy and law.
It is not a distant dream for a sector that has yet to develop – retail banking is already the main source of bank profits in most countries, as The Economist explained in its May 2012 Retail Renaissance survey.
Retail banking is the future – and the RBA is dedicated to making it an admired and respected profession of international repute.
Retail Banking I
Retail Banking I is designed to introduce the theoretical and practical core competencies that are required for success in a retail banking organisation.
101 – Business Ethics and Compliance
This module considers the moral principles underlying business ethics where motives matter most when the bank adopts a customer-centric strategy. The module also deals with the separation of ownership and the resulting information asymmetry which provides an opportunity for managers to pursue self-interest objectives. Finally, sources of compliance risk that include data security, money laundering and terrorist financing are identified.
102 – Retail Banking Overview
This module considers the role of the retail bank in the economy, sources of funding, calculation of common retail banking metrics and analysis of both the liability and asset sides of the balance sheet.
103 – Products
In this module we review the reasons why customers demand services and products, linking the product/service to the usage. New forms of payment emanating from the development of the smartphone are also identified. We also consider product development in the digital age, noting areas of innovation and payments innovation vying for a share of the customer wallet.
104 – Channels
This module examines the major shifts and trends in retail banking channels while considering the multi-channel customer. The role of the digital ecosystem and the role of the branch network is explored as banks look to support the growth of digital sales. The implications for data management are also considered.
105 – Marketing
This module considers the changing nature of marketing in financial services as the Fintech movement gains pace. We determine the key methods used to understand customers and evaluate digital marketing opportunities that utilise the latest tools and techniques in this area.
106 – Effective Sales Management
This module examines the importance of maintaining a disciplined sales process while implementing the Sales Performance Scorecard which results in improved processes, better educated and competent staff, increased sales to customers based on their needs, and greater customer satisfaction. We evaluate the significant impact of digital, such as ‘Selling the UX’ and the ‘Network Effect’.
107 – Customer Service Quality
This module determines the fundamentals of customer service quality, its relationship to customer loyalty and the resolution of customer service failures via a Gaps model.
108 – Operations
This module views the activities carried out in the front, middle and back office, holistically. Sources of operational risk and techniques to ensure the effective management of retail banking processes are identified. Finally, we introduce the three-stage model of project management, noting that modern retail banking is highly technologically dependent.
109 – Credit and Lending
This module identifies the main sources of risk in retail banks, key issues in credit loss management and an evaluation of the main approaches to managing credit risk.
110 – Relationship Management
Relationship Management is based on the creation of an optimal long-term bank–customer relationship that serves the long-term needs of the customer and, as a result, the long-term profitability of the bank. This module considers current trends in intelligent Customer Relationship Management (CRM) systems and the defining trends of innovation within CRM.
Retail Banking II
Retail Banking II focuses on the issues that are encountered when leading people and departments. Retail Banking II focuses on the issues that are encountered when leading people and departments.
201 – Digital Marketing
This module examines the leading trends related to digital marketing and takes a close look at global strategies banks are adopting in order to take advantage of the digital revolution. We examine the changing nature of the digital consumer, how to develop a digital strategy, the role of data and the opportunities that data creates for banks, and how to develop a social media strategy.
202 – Product Portfolio Management
This module considers fundamental issues in effective product portfolio management so as to identify products that are redundant or are potential value destroyers. A number of matrixes to support product development and the decision-making process are also introduced. Finally, the Millennial segment is considered, which is key to bank transformation and change management investment.
203 – SME Lending
This module utilises the 5Cs model as the basis for establishing the creditworthiness of SME borrowers. We present an SME lending risk scorecard, examine the mechanics of loan pricing, consider the credit risk evaluation procedure for unsecured loans, calculate expected losses, and consider risk implications in the bank’s loan portfolio. An introduction to Crowdfunding – the emerging online channel in SME lending – is provided.
204 – People Management
This module emphasises that People Management is based on the resource-based view of the organisation. We show that effective people management and employee engagement increases employee productivity, which in turn increases economic profit and shareholder value creation.
205 – Customer Care
This module emphasises that customer care is an organisational commitment and a strategic objective. We consider actions that create a culture of customer care and provide methods for practical implementation. This module considers how to promote customer satisfaction amongst Millennials via technology-based self-service delivery options where drivers of customer satisfaction differ from Baby Boomers. We conclude by building models that utilise the ‘digital lock-in effect’ to promote loyalty by examining digital customer care journeys and designing tactics around these.
206 – Performance Management
This module considers performance management and measurement in retail banks with an emphasis on managing for value. KPIs for people performance measurement, transfer pricing and divisional performance are studied. Bank branch management metrics to monitor performance are examined and a branch dashboard for a retail bank that serves to monitor performance is presented. Key considerations for managing performance in digital banking are also presented.
207 – Wealth Management
This module covers lending, investment and insurance products that are required in the wealth accumulation phase of the private banking client. Traditional tools to assess the private banking client’s degree of risk aversion are implemented. This module also teaches the foundations of modern product portfolio theory that includes diversification methods, strategic asset allocation and measures of portfolio performance.
208 – Balance Sheet Management
This module deals with moral hazards that arise from the financial intermediation process. We discuss the capital allocation process required under Basel III, consider the risk weights for credit, operational and market risk, and introduce fundamental properties of interest rate risk through a duration gap analysis.
209 – Risk Management
This module covers the fundamental principles of risk and capital management – the measurement and management of operational risk, market risk, liquidity risk and funding liquidity risk – and concludes with the elements of risk-based pricing.
210 – Financial Management
This module examines financial analysis around key banking metrics, including a more detailed financial statement analysis with the CAMELS approach as a guideline.
Retail Banking III
Retail Banking III focuses on the issues that are encountered when you are leading people and departments. The aim is to develop and enhance the capabilities required to run retail banking strategic business units (SBUs) for best results.
301 – Leadership in Retail Banking
This module proposes that principled leadership is most appropriate for leadership in retail banking where an effective leader in retail banking creates a moral compass for all employees and inspires them to serve customers’ needs. We also consider leadership in retail banking, with special emphasis on change management, communicating and understanding resistance to change, and leading through the Fintech revolution.
302 – Business Strategies for Retail Banking
This module sets out to address the challenges of the changing landscape in retail banking where a well-defined business strategy is paramount by covering the following areas: developing a business strategy, creating a business strategy in retail banking, digital banking strategy and challenges, and executing strategy efficiently.
303 – Brand Management
This module considers the main issues of brand management, with special consideration given to models of consumer-based brand equity through their direct effect on brand meaning for the consumer. The importance of employer branding is also considered. The module concludes with issues related to co-branding and the importance of brand congruence for success. This module concludes with how to create a credible digital innovation and transformation narrative in retail banking for Millennials while building differentiated branding for a traditional retail bank versus Big Tech providing financial services and challenger banks.
304 – Governance
This module presents the underlying theories of corporate governance in retail banking and the role of important corporate governance instruments in monitoring the actions of senior management. This module also presents a link between the operational structure of a retail bank and the risks that may emanate from it, concluding witha discussion of the potential link between silos and the ethical behaviour of bank employees.
305 – Operational Excellence
This module considers operational excellence in retail banking as an enabler of management’s strategic objective of value creation through customer-centricity. The design and deployment of a multi-channel strategy is also considered, along with impediments to successful implementation. Lessons are presented that serve to mitigate potential impediments. We consider the potential for blockchain to revolutionise back office processes in retail banking along with implications for promoting cost efficiencies. Finally, we consider international best practice in the application of cloud banking while also considering the risks associated with cybersecurity and the associated regulatory challenges.
306 – Risk and Capital Management
This module presents advanced methods for managing interest rate risk and liquidity risk. Capital allocation methods for internal ratings-based banks are examined with emphasis on credit risk for retail exposures. The module also deals with the central issues in risk governance.