The Potential For Employment Generation & Skills Needed In Banking And Financial Services

Santosh who comes with proficient skills in business planning & customer relationship management is a strong business development professional graduated from Mumbai University.

The BFSI (Banking and Financial services and Insurance sector in India is poised for major growth in the coming years with economy having major growth plans for the coming year and the BFSI industry is all set to play the lead role in the race for economy growth. This shows a huge growth potential for the sector where additional 1.6 million skilled workforce will be required in the sector by 2022 alone.

The expansion of banks and financial services branches across the country is said to generate additional employment opportunities for the people from that city or region. For a long time it was only the Public sector Banks that conducted major hiring but off late with the growth of private banks in the country as the leading employer since the focus has shifted towards customer-facing and sales profiles, the industry is witnessing major surge in entry level hiring which is expected to sustain the sector’s growth, accounting for almost 73 percent hiring. Also over the years the country is witnessing stability from a mix of public, private and foreign banks which is helping this sector’s growth ecosystem and the growth of Non-Banking Financial companies (NBFCs) has further contributed to this segment in a big way.

The sector has also witnessed increased use of alternative channels such as use of ATMs, mobile and internet banking which has added to the human resource requirement in this sector. The banking sector has recorded double digit growth due to high disposable income and accounted for 15 percent excess in the last couple of years. Also as and when there are industry developments or new technology to use or otherwise they need to provide additional training to their employees as per the changing trends. It has been observed through various reports that corporate banking, treasury, finance, technology, human resources, retail banking require staff that has a particular kind of an aptitude and specialists which increasingly match the evolving business context. The different organisations organize different and specialized trainings for their

employees from time to time to upgrade their skills and knowledge in the field and help them performance which will eventually benefit the organisation in achieving its long term goals.

Increasing the reach of Banks and financial institutions to rural and semi-rural areas has brought about 74 per cent penetration level in making them accessible and ensuring organized system in the country and encouraging micro finance as the major thrust area. Mergers and acquisitions have helped banking system to carve out its strong niche in the country. Also the growth of exports and imports in the country also primarily depend on it. The ability to adopt to technology has been the greatest boon of this sector which has made life easier for both its employees and customers and also keeping abreast with the latest technology in the field making the entire system more or less automated and error free which requires skilled workforce to accomplish this task. The new trend of outsourcing banking activities like telecalling for loans and others has also shown a large number of job opportunities in the field which again requires qualified and efficient professionals who know their subject well.

The country is witnessing stability from a mix of public, private and foreign banks which is helping this sector’s growth ecosystem and the growth of non-banking financial companies

In India there are selected few and certified institutes that provide this kind of specialized and analytical training which directly help the young graduates learn enhanced skills for a particular job and the challenges that come with it. The country needs to give more impetus to development of such skill imparting institutes which will eventually help in the growth of the sector and also create an efficient and skilled workforce which the country currently needs.

The financial services sector contributes to 11.5 percent of India’s GDP and employs a significant number of people. It has a well- established industrial relations setup. The growth in the number of jobs is sure set to improve in the coming year’s inspite of the temporary slump the economy must be facing currently but this will gradually pave way for more skilled workforce in the sector. This sector has proven that it is so far one of the more versatile segment as it has been able to tap into new markets. Without a doubt in recent times skill development and its importance has become important not only for various industry segments but also for the country as it requires that kind of workforce to be globally competent and improve business.