Training effectiveness with virtual reality technology: impact on insurance sales in the banking industry

Abstract

Although previous studies have established a solid foundation for virtual reality (VR)-based training, they have not focused specifically on its application in banking or its impact on outcomes. To address these shortcomings, this research aims to analyse the effectiveness with VR technology, and specifically, its impact on insurance sales in the banking industry. The research will also report what kind of user values the VR-based training best or who is most successful in the training. We have run a nonparametric analysis and a regression analysis considering training and business indicators, as well as variables that measure employees’ characteristics, bank office characteristics and location. Our findings show that the success in VR training, proxied by the percentage of questions correctly answered in the training, and employees’ satisfaction with the VR training do not depend on characteristics, such as gender or age, but on the type and location of the bank′s office or on office level. Moreover, those who attend the training about insurance sales sold more insurance contracts. Our research will have important implications for academics and for Learning & Development CEOs, because it has demonstrated the effectiveness of VR training on results and its universality for every kind of employee..