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The Fourth Industrial Revolution (Industry 4.0) is the notion of an industrial revolution that will alter the way we live, work and interact with one another, including how we utilize and deploy highly disruptive technologies such as artificial intelligence (AI), virtual reality (VR), robotics and blockchain technologies. This impact is clearly evident in the banking and financial industry. Industrial Revolution 4.0 has also impacted traditional financial companies in the following ways: disintermediation, unbundling, commoditization and invisibility. It’s time for financial institutions to think about how and where they can advance their digital strategies beyond the utility of transactions and payments. Where should banking providers focus their digital investments on learning and talent development?

Efforts to stop the spread of COVID-19, such as physical distancing and self-isolation, have prompted the widespread closure of classes. However, the need for learning remains. Some initiatives have been implemented, such as online training through online learning platforms, on-the-job training and others. There is some feedback on the online training that there was no role-play, so they don’t have enough ‘experience’ to understand, and the program and the instructor are not interesting enough. It was also the only way of communication due to poor connection and limited time for interaction and experience. COVID-19 has prompted educational institutions to search for innovative solutions relatively quickly. Virtual reality training is a new way of learning. Virtual reality is a multi-dimensional human experience which is totally or partially computer-generated and can be accepted by those experiencing the environment as consistent. It is also defined as "human immersion in a synthetic environment".

"We have created a virtual workspace environment because we can communicate with others and perform required tasks without the physical pressure of either fellow performers or actual equipment. "

Utilize VR technology to improve learning scale, scalability, and efficiency and create a better learning experience for the learners. VR training has five benefits—first, scenario (simulation) based learning. Virtual reality through computer-based technology, in general, has the potential to greatly impact how we educate and train all people. VR is a package of computer hardware, software, and interface technologies that allow a user to experience certain aspects of a simulated 3-dimensional environment. Upskill employees through real scenarios and prepare them for any surprises on their job line. Second, a safe training environment for employees is needed. In this pandemic era, offline training is not preferred as it could be a medium for transmitting viruses. Through virtual reality, we eliminate the need for physical proximity of colleagues, teammates, classmates, or instructors by creating a distance learning/training environment. This is possible through networking, simulations, and interactive software technology. We have created a virtual workspace environment because we can communicate with others and perform required tasks without the physical pressure of either fellow performers or actual equipment. VR can handle unusual events, which could mean the need for unusual responses and individuals still in a safe environment. Third, immersive training. Digital simulation must be as realistic as possible to create the illusion of real practice.  The degree of immersion within the synthetic environment is relative to the tasks to be performed and the skills to be developed by the individual or the group. Then, one is given a wider variety of environments, which could be called virtual. Another interesting thing about these environments is that every object is a state machine. Therefore, and this again comes back to education and training, the objects that I am holding in my hand, the rooms I have walked through, and the things I've accomplished in that environment will determine what I see and what objects do to me as I walk through this environment. Fourth, VR will save time and money by allowing us to do virtual training instead of doing things that usually require field exercises, expert monitoring, or even things that are impossible in the field. It saves learning time with simulation using the practice-by-doing method. VR training can reduce training costs by 50 to 60 percent. VR training can reduce training time by 40 percent while improving employee performance by 70 percent. Overall, VR training will increase productivity through better learning effectiveness and a shorter learning life cycle.  Fifth, raise learning motivation by learning to use VR and gamification. VR is more engaging and will greatly motivate users to participate in training or, more broadly, in education or other activities. The goal of VR environments is to be very engaging so that the learners will want to learn more and enjoy being part of it. This is a very important aspect of any kind of system that is trying to support training.

Bank CIMB Niaga continuously explores learning methodologies that can provide learning experiences that are easier, safer, and more targeted, among others, by using VR technology. It leverages VR's capabilities to replicate authentic workplace situations, providing employees hands-on experience and practical skills development in a virtual environment. Implementing VR technology revolutionizes training methodologies by immersing participants in realistic scenarios without requiring physical presence at the training centre. CIMB Niaga adopted this technology through a VR Headset, which presents a scenario-based immersive learning experience using 360-degree video and a 3D model. VR learning has become integral to employee competency development, providing impactful learning experiences and optimizing employees' education, exposure, and overall learning experiences.

CIMB Niaga has launched 21 modules since early 2021, from specific modules for front-liners (opening new accounts, complaint handling, teller transaction and selling skills) to generic modules for all staff (fire-drill, robbery anticipation, communication skills and coaching Skills). Up to now, we have distributed 325 VR Headsets to all branches across 95 cities in Indonesia, with more than 27,000 pax employees having completed the modules. In fact, Bank CIMB Niaga has received acknowledgement from the Indonesian World Record Museum (MURI) as the pioneer in Indonesia by being the first bank to organize learning sessions utilizing a VR Headset.

Muhammad Shodiq

The writer is the Senior Vice President and head of Learning & Development at Bank CIMB Niaga Indonesia. The views expressed here are his own. He can be contacted via email ID: Muhammad.shodiq@cimbniaga.co.id