What is Bank of Kyoto teaching its employees about lending?

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Bank of Kyoto is educating its staff on lending practices and customer communication in anticipation of a shift to positive interest rates.

Bank of Kyoto is implementing e-learning modules to equip its approximately 3,300 employees with the necessary knowledge and skills for operating in an environment with positive interest rates. These training sessions are designed to address the lack of experience among many staff members regarding lending and deposit collection under such conditions. The curriculum focuses on fundamental economic principles, practical client interactions, and strategic adjustments required for a changing financial landscape.
Understanding the Mechanics of Positive Interest Rates

A core component of the e-learning program is dedicated to explaining the significance of interest rates, the process by which lending rates are determined, and the broader impact of rising rates on both the bank's operations and its clientele. This foundational knowledge aims to ensure all employees grasp the underlying economic factors at play when interest rates are no longer at zero or negative levels. The training specifically targets younger staff members who have spent their entire careers in a zero-interest-rate environment.
Developing Strategies for Higher Lending Charges and Deposit Acquisition

The training also incorporates insights from experienced executives who recall Japan's era of positive interest rates. These sessions focus on imparting practical know-how, particularly in the area of customer communication. This includes guidance on how to effectively explain to borrowers why lending rates will increase and how to manage customer acceptance of potentially higher charges. Furthermore, the program addresses the intensifying competition for deposits, a situation that becomes more critical when interest rates rise.
Enhancing Customer Communication for Deposit Growth

Beyond explaining rate increases, the e-learning modules provide practical advice on how to foster better customer relationships to encourage deposit growth. This involves equipping staff with the communication skills needed to articulate the value of banking with Bank of Kyoto in a positive interest rate scenario. The goal is to shift the mindset of younger employees, preparing them for the operational and competitive realities that differ significantly from the prolonged period of zero or negative rates.

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What is Bank of Kyoto teaching its employees about lending?

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