Enhancing the Financial skills, Empowering the BFSI Sector
We all would have played the jigsaw puzzle and enjoyed searching for the missing pieces and putting them together. Remember the joy of finding that one missing piece which seemed elusive initially….
But why are we talking about the jigsaw puzzle? How about this having a connection with the BFSI(Banking financial services and Insurance) Sounds confusing? There is a missing piece in the BFSI career puzzle which is waiting to be found and putting it in the right place to solve the puzzle. Let us explore.
Do we know that India’s BFSI sector is expected to provide jobs to an additional 1.6 million skilled workers by 2022? Banking, Insurance and Mutual Funds Industry collectively make for the robust growth story of India.
This spells promising new opportunities for many job seekers! As per the report of Indian Banking Association (IBA), financial sector is the most preferred sector by the youth for their careers.
The BFSI sector of India has played a crucial role in driving the nation’s growth and is poised to become the fifth largest in the world by year 2020 and 3rd largest by 2025
A National Skill Development Council report reveals that this sector is looking for more manpower in Corporate banking, retail banking, treasury, finance. There is a lot to look forward to in this dynamic and diverse domain but how well equipped are the professionals to make it to the top in this sector?
The problem BFSI sector is facing is that of lack of employable manpower with 58% Indian Financial Organisations finding it tough to recruit the right candidate with upgraded skills. This skill gap here is demotivating and needs to be addressed. This is the missing piece of that jigsaw puzzle…yes… enhancing the financial skills.
There has been a paradigm shift in Indian banking with the introduction of new technologies to meet the client’s needs in a customized way. Financial crime, regulatory projects data protection, anti money laundering are few of the frontier areas where there is need for highly skilled professionals.
All BFSI organizations look for employable manpower to bring in expertise both on domain knowledge and soft skills.
As this sector offers variety of job roles such as Insurance agents, Bank and Financial Product sales executives, Investment representatives and stock brokers, there is no adequate training about many aspects:
- No adequate training on critical areas like ethics, understanding of risk and models needed to predict risks.
- No Proficiency in sales, stock market knowledge, mathematical aptitude, mutual fund awareness and knowledge about banking operations.
3.The Indian Government’s twin thrusts- to encourage digital identification and cashless transactions are driving changes in the economy. So the professionals have to be trained in this domain too.
This sector has been traditionally hiring professionals with qualifications such as CA, ICWA and MBA. However in light of the robust growth in this sector, banks have been outsourcing some of the functions to the third parties. Thus outsourcing has opened avenues for more trainable manpower such as for marketing, sales and customer support.
There is a huge skills gap that if addressed effectively can help the BFSI sector thrive more.
The Indian government along with AICTE with NEEM (National employability Enhancement Mission) scheme has taken up the initiative of training the youth to raise their skills and employability quotient..
One of the crucial areas in the BFSI sector where there is immense potential for employment and growth is the Mutual Funds.
The mutual funds have played a crucial role in Financial markets around the world But it has still remained a small player in Indian financial Markets. Indian Mutual Funds’ assets base surged to over 23 lakh crore in 2017-18.
For various reasons, the MFs have not still been a popular investment choice for many Indians. This is due the lack of awareness and education.
Another domain that has to be focused is the Insurance. A well developed and evolved insurance sector is one of the strengths which drives the Economic growth of a country. This sector has immense untapped potential and can offer many more employment opportunities. Skill enhancement is essential to tap the latent potential of this domain
Educesta Global, a renowned education management company is offering a competitive MBA in Capital Markets along with Professional Diploma in Capital Markets. This MBA degree is awarded by the University of the West of Scotland.
This program offers you a great insight into analyzing financial markets, banking and investments. Thus you can enjoy the rich experience of gaining knowledge and skills to build a flourishing career in this sector and also take steps towards being a better decision maker about your finances.
Read our next article: Why MBA in Capital Market?