The Evolution of Compliance Training

Training is a critical component of compliance in financial services, ensuring employees remain up to date with ever-changing regulations. Traditionally, compliance training was conducted in-person, with seminars and workshops. However, the rise of online training, especially since COVID-19, has transformed how firms deliver compliance education.

The question now is: Is online training more effective than traditional learning? In this article, we explore the pros and cons of each method, focusing on how online compliance training is shaping the future for companies and employees across the UK and EU.

The Changing Landscape of Tradition and Digital Learning

Traditional compliance training relied on on-site instruction, requiring employees to attend in-person sessions, with printed materials that quickly became outdated due to evolving regulations. Additionally, seminars were often overwhelming and lacked engagement.

While less flexible and often costly, traditional compliance training still has certain advantages. It allows for direct networking and discussion, offers immediate Q&A opportunities, and, for some learners, provides a more engaging experience. However, scheduling conflicts, instructor costs, and difficulty in scaling across multiple locations make traditional training inefficient compared to digital solutions.

Today, online training has changed the landscape by introducing self-paced digital courses, interactive and gamified content, and automated tracking to ensure firms can easily demonstrate compliance to regulators.

Recent statistics highlight this trend:

• About 90% of companies now offer digital learning in some form¹.
• 93% of the businesses worldwide are planning to adopt online learning in 2025².
• 58% of employees prefer self-paced learning over traditional methods³.

Furthermore, online training has been shown to reduce training time by 40-60%, allowing employees to remain productive⁴.

While online training offers many benefits, it also has drawbacks, like traditional learning. Some employees thrive in environments where they can engage in discussions and ask spontaneous questions, which online learning often lacks.

Another challenge is that engagement requires high-quality content. Poorly designed courses can lead to low participation, and passive video training often fails to hold learners’ attention. Additionally, digital fatigue and self-discipline remain key concerns. Employees may experience screen fatigue, and without direct instructor oversight, some may procrastinate or rush through modules without fully absorbing the material.

The good news is that, despite these challenges, online training can overcome its drawbacks and become a more effective option⁵:

• Many organisations adopt a blended learning approach, incorporating live virtual sessions and interactive components alongside digital modules.
• Adopting AI-powered learning and gamification enhance interaction and retention.
• Implementing microlearning (delivering information in short, focused modules) and using reminders can help address procrastination and improve focus.

The Benefits of Online Compliance Training

1. Time saving and Cost-effective: Online training can be accessed from anywhere with an internet connection, allowing employees to complete training at their own pace and on their own schedule. It eliminates the need for travel and scheduling conflicts while allowing firms to break complex topics into manageable microlearning sessions. Companies with strong online learning programmes have been found to experience 218% higher revenue per employee.⁶
2. Flexibility: Online training allows employees to fit their training into their busy schedules and take breaks as needed. It is ideal for remote and hybrid workers, as it allows them to access training anytime, anywhere. Flexibility increases the ‘buy in’ from staff. This also increases staff engagement and allows them to pause and revisit course materials as needed, which can be helpful for those who need to review particular concepts.
3. Engaging: Online training can be interactive and engaging, by using AI, videos, gamification, and simulations to enhance the learning experience. Research indicates that online learners retain 25-60% more material than those trained in a classroom setting.⁷
4. Tracking and assessment: Online training often includes tracking and assessment tools that allow the monitoring of employees’ progress. This has the added benefit of tracking training which is necessary for any compliance performance indicator.
5. Chasing: The advantage of good software (like Leo) is that it sets and chases staff with regards to training, saving hours of operational work and often proving more effective, since it has no problem being overwhelmed or forgetful.

The Verdict on Online vs Traditional Training

While traditional compliance training still has its place, online learning is now the dominant method for financial services. Companies benefit from cost savings, efficiency, and scalability, while employees enjoy the flexibility, engagement, and retention advantages of digital learning. From a compliance perspective, online training offers instant updates, data tracking, and regulatory alignment.

As compliance requirements become more complex, financial firms must ensure their employees have access to effective, up-to-date, and engaging training. Investing in a high-quality online compliance training software is no longer optional—it is a necessity.

Ready to upgrade your compliance training? Explore Leo’s Online Training Solution and ensure your team stays ahead of regulations.

How can we help?

Leo trains your staff through engaging online modules, so they remain up to date with the latest regulation and practices which affect their role. In just a couple of clicks, you can train your staff on AML, Market Abuse, Cybersecurity and more, gaining certification to evidence their training.

Key Features

• CPD courses (not all)
• Multiple choice examinations
• Automated reminders to staff
• Regulatory updates
• Resit courses
• Automatic progress tracking
• Over 150 courses
• Exportable data

Download the full course list here.

1. https://www.gratefulcareaba.com/blog/e-learning-online-learning-statistics?utm_source=chatgpt.com ↩︎
2. https://elearningstats.education/ ↩︎
3. https://www.myshortlister.com/insights/employee-training-statistics ↩︎
4. same as two ↩︎
5. https://www.emailvendorselection.com/online-learning-statistics/?utm_source=chatgpt.com ↩︎
6. same as five ↩︎
7. https://research.com/education/online-education-statistics?utm_source=chatgpt.com ↩︎