Forrester Study Finds Financial Services Organization Saw $148M in Benefits After Adopting Udacity as its Digital Upskilling Solution

The results of the Total Economic Impact™ (TEI) study revealed a significant increase in employee productivity, a reduction in costly turnover, and lower audit penalties

MOUNTAIN VIEW, Calif., Nov. 15, 2022 /PRNewswire/ -- Digital upskilling platform Udacity announced today a new commissioned research study conducted by Forrester Consulting, which examined the potential return on investment (ROI) and business benefits financial services organizations may observe by deploying Udacity's technical upskilling solution for enterprises.

The results of the Total Economic Impact™ (TEI) study revealed a 234% ROI, a significant increase in productivity in the upskilled talent pool, a reduction in costly employee turnover, and improvements in regulatory and compliance records, creating a substantial reduction in audit penalties for the interviewee's organization.

To conduct the study and project this three-year analysis, Forrester interviewed a representative of a financial services organization who has experience using Udacity. Prior to adopting Udacity, the organization that participated in this study used a combination of learning resources to facilitate skill-building for its technical and nontechnical workforce. This ad-hoc approach included digital platforms, printed documentation, and in-person classes.

Key findings from this study are:

• Increased productivity of upskilled staff, resulting in a three-year savings of $116.1M. As a result of Udacity's Nanodegree offerings, upskilled employees across an organization can complete a wider variety of tasks in less time, saving the organization significant resources. According to the interviewee, each upskilled graduate demonstrates an approximate 20% efficiency gain.
• A 20% decrease in employee turnover, resulting in $25.9M in savings. With the adoption of Udacity for upskilling needs, employees acquire new skills, allowing them to remain relevant and help the organization meet its business goals. The organization's investment in its workforce leads to a correlated increase in employee engagement and an improved work experience, resulting in a 20% reduction in employee turnover as compared to its previous environment and a three year risk-adjusted savings total of $25.9M.
• A 50% reduction in audit and regulatory compliance penalty costs, resulting in $6.7M in savings. Financial services organizations must meet audit, regulatory, and compliance requirements or they face hefty fines and penalties. Modernizing upskilling through a single talent transformation platform enables an organization to standardize training surrounding compliance and improve its audit record by 50%. Eliminating one failed audit per year at an average penalty cost of $3M, the organization realizes a three-year, risk-adjusted benefit savings of $6.7M.

"We commissioned Forrester Consulting in Q3 2022 to gain a better understanding of the benefits that financial services organizations can expect from investing in Udacity. We are extremely pleased with the Forrester study's findings," said Sebastian Thrun, Founder and Executive Chairman at Udacity. "This study demonstrates the clear ROI and outsized business impact for technical upskilling, and its link to big-picture business priorities in the industry."

Other business benefits found include ease of implementation, improved employee experience, and more secure information handling. Udacity offers a solution that is efficient and easy to implement, and eliminates the need for in-person training, saving travel and planning resources. Graduates of Udacity's Nanodegree programs appreciate the opportunity to build their skill sets and recognize the organization's investment in their career paths, and Udacity mitigates security risk through its platform design, allowing course participants to access content and collaborate in a secure manner.

To learn more or access the full Total Economic Impact™ (TEI) study, click this link.

Udacity changes lives, businesses, and nations through radical talent transformation in digital technologies. Udacity's global, online talent transformation platform focuses on in-demand digital technologies, mentor support, and project-based learning taught by industry experts. Programs include real world content for job-ready competencies in artificial intelligence, machine learning, data science, autonomous systems, cloud computing, among other disciplines. Udacity has more than 100 enterprise customers including Airbus, Bertelsmann, BNP Paribas, Leidos, Mazda, and the United States Air Force. Udacity collaborates with more than 200 global industry partners including Google, Mercedes-Benz, and NVIDIA to power technical education. Headquartered in Mountain View, Calif., the private company has operations in the United Kingdom, Egypt, Germany, India, and the United Arab Emirates. Udacity has raised $163 million in funding to date from investors including Bertelsmann, Andreessen Horowitz, Charles River Ventures, and Drive Capital. For more information, please visit www.udacity.com.

SOURCE Udacity