Tech Hiring in BFSI – A prospective of future skills  

August 11, 2022

Introduction to BFSI

One of the most lucrative industries right now, the Banking, Financial Services, and Insurance industry (BFSI) has seen tremendous innovations and has witnessed explosive growth in the last decade. Due to new innovations and adoption of emerging technologies, the BFSI sector has established itself as one of the fastest growing sectors with unlimited potential.  

The adoption of new technologies has also increased the scope of skills required, where BFSI companies and organizations are seeking highly skilled individuals with the right foundational knowledge. Technologies like Blockchain, data processing, Internet of Things, artificial intelligence/machine learning and mobile computing, have disrupted the age-old traditional banking services and revolutionized the whole industry completely. Nowadays, we use smart devices to make digital transactions within seconds, with all the banking services available at the palm of your hand. These technologies have refined financial services to be faster and more secure, as well as expanded to new markets which has exponentially increased the potential of the BFSI industry. 


Here is an overview of the game-changing technologies in BFSI 

  • Artificial intelligence/Machine learning: The adoption of AI/ML in the BFSI sector has been a major influence in improving operational efficiency. With AI (Artificial Intelligence) adoption, financial services have been improved consistently with automation, data processing, access to actionable insights, and most importantly improved personalized customer service. AI is also used to identify and prevent fraudulent transactions or behavior before they can happen, which drastically improves security. Recent study by McKinsey & Company has also predicted that about 10-25% of banking services will be automated to increase efficiency.  
  • Blockchain: Blockchain is a relatively modern technology which acts as a distributed ledger with records of transactions and key financial information. This information cannot be altered or hacked but is duplicated and distributed to all the systems existing in the blockchain. This technology ensures that payments are faster, reduces need for verification, helps create smart contracts, compliance-based processing, and increases transparency. According to EconomicTimes, The Reserve Bank of India (RBI) has been proactive in providing guidance for development of blockchain based applications through its new regulatory sandbox environment, the government told the Rajya Sabha. 
  • RPA: RPA or Robotic Process automation has been adopted by the banking industry to improve productivity levels through automation, removing bottlenecks like repetitive tasks, and essentially improve end-customer experience with personalized services. The automation achieved through adopting RPA not only reduces human errors but also streamlines operations that directly improve overall services through generating automatic analytical reports, better customer onboarding, opening accounts etc. According to Gartner, IT spends by banking and investment services firms is forecasted to grow 6.1% in 2022 to $623 Billion globally.  
  • Big Data Analytics: BFSI organizations have effectively adopted big data and turned them into various new services such as personalized services, improved security, revamp existing services and gain a competitive advantage in the sector. Today, it plays a huge role and has been completely integrated into financial services through access to key actionable data. According to a SG Analytics, Big data has a major impact on economic analysis and modelling. 71% of firms in the BFSI sector use big data analytics to gain a competitive advantage. 
  • Cybersecurity:  The digital transformation of the banking sector has also increased cybersecurity risks such as data breaches, leaks, financial cybercrimes, etc. There is a dire need for highly skilled cybersecurity experts that can help fortify the defenses of the increasingly digital BFSI sector. Organizations have ramped up their efforts in building a robust cybersecurity team that can maintain security standards and navigate through threats in the future.  

With these technologies leading the BFSI revolution, companies and businesses in the BFSI sector are actively looking for the right talent with the right skills that can add value and increase efficiency of all services.  


The rise of the “skill-gap” 

Consistent improvements are catalyzing the growth of the BFSI sector, we should understand the impact of these improvements and how it will shape the future of the BFSI sector. The rapid evolution of the sector was initiated during the pandemic as various industries were trying to cope with the challenges of running their businesses in the pandemic. The digital infrastructure for the BFSI sector was almost transformed overnight to maintain functionality. Especially in a country like India, where the population is so large, and dependent on traditional banking services, the technological adoption rate was impressive.  

The growth of the BFSI sector also brings along many challenges and none more important than the rising skill-gap in the sector. Here are some statistics about the rise in demand for the “right skill.” 


Sekhar Garisa, CEO,, a Quess company, said, “The burgeoning demand for skilled talent in the Banking and Finance industry today is clearer than ever, and we expect these numbers to grow further given the vast innovations in the space. Recruiters are on the hunt for talent adept in new-age skills and there is no going back for this industry that has efficiently adapted to the challenges posed by the pandemic over the past two years.”  

Here are the major sectors in BFSI and their scope, growth, and challenges:  

  • Banking  

Financial services are one of the most crucial aspects of any economy today. The seamless integration of technology into the banking sectors has expanded its horizons quite literally. The services are faster, more secure, and accessible due to technologies like AI, IoT (Internet of Things), Blockchain etc., which have gone on to unleash the potential of the banking sector. The National and International regulatory bodies have mandated several requirements for the adoption and application of these technologies.  

 Growth in banking 

Even though technology and the internet played a significant role in the banking sector, it was not always open to change. And today, every bank that is operational in India has its own iOS or Android app that allows customers to easily access all the banking services they need instantly. Many banks, old and new have created new departments to implement and manage emerging technologies as well as consistently develop products that can improve banking services.  

 Challenges in banking

The major pain point of the banking sector right now is that – they have the digital infrastructure in place, but they do not have the workforce equipped with the required skills to innovate with the above-mentioned emerging technologies. With fast emerging verticals like digital banking, cybersecurity, data analytics, AI, Debt resolution and recovery, Risk and compliance, the skill-gap in the workforce is on the rise. With technological adoption rates increasing, the skill-gap in the IT department of the banks is rising.  

Key Roles in Banking sector

Software developers whose responsibilities range from testing, developing software that adds value to financial services, command over programming languages like Java, .Net, C++ and knowledge of UI frameworks.  


  • Insurance 

The Insurance subsector of BFSI industry has also become highly lucrative by stretching its range of services and ease of doing business. The Indian Insurance sector has a total of 57 insurance companies out of which 24 are in the life insurance business, while 34 are non-life insurers, among which Life Insurance Corporation (LIC) is the sole public sector company. The Indian government has also ramped up its effort to get its population the right insurance through various schemes like Pradhan Mantri Suraksha Bima Yojana. The changing technological landscape has increased the potential of the Insurance subsector tenfold.  

Growth in insurance

With several changes to the age-old regulations, the insurance subsector’s prospects look promising if the subsector is committed to consistently improve its digital infrastructure. With a huge chunk of the Indian population equipped with smart devices, the growth of the middle class and new insurance-based start-ups have set the stage for the insurance subsector to reach new heights.  

Challenges in insurance  

The Insurance subsector has also seen significant changes due to the adoption of innovative technologies. The digital landscape and the change in mindset of the consumers who prefer instantaneous services has risen greatly. With the new regulations complying with the technological changes, the potential to grow is exponential. But there is a rising skill deficit to handle the roles required to maintain an efficient digital infrastructure.  

Key roles in Insurance

AI Developers, Data scientists and Engineers, UAX Engineers and IT developers, Cybersecurity experts, Data analysts, AI and RPA, Digital Sales Aggregators, Risk and Compliance agents require a combination of financial knowledge and technical proficiency in languages like Keras, Pytorch, Scikit-learn, MXNet, Pybrain, and TensorFlow 


  • Microfinance 

Microfinance can be defined as basic financial services such as loans (low to medium level), creating accounts, providing insurance to low-income individuals, and making the services more accessible. The microfinance phenomenon aimed at making financial services inclusive to all, to help low-income households achieve financial independence and economic growth and offer financial opportunities to prove themselves.  

Growth in microfinance 

The microfinance industry is a conglomeration of 58 NBFC-MFIs and 39 Associates, which includes SFBs (Small Finance Banks), regular banks, and NBFCs (Non-Banking Financial Companies). In India, we can see tremendous growth since adopting modern technologies have increased the access to several services across the entire population. With more people able to access MicroFinancial services and empowering themselves, the growth in the sector has been highly encouraging.  

Challenges in microfinance

The Microfinance subsector in India caters to a large volume of population, so the adoption of emerging BFSI technologies was a no-brainer. Big data, data processing, AI and ML have made services more refined, accessible and inclusive to all. There are even discussions ongoing to leverage blockchain technology to increase transparency and better monitoring. With fast growing verticals for  

Key roles in Microfinance

Alliance Management, Data analytics, Risk and compliance managers, and other vital IT roles such as developers, AI experts and predictive analysts, the microfinance industry will need all the technical skilled professionals in Python, Java, R Programming, C++, Scala, SQL, JavaScript, MATLAB, etc.  


Now that we know the key roles and the skills required, the question now is – How to hire the right talent? 

A skill-assessment platform like Yaksha can provide you role-based and skill-based assessments which will also provide actionable insights that you can use to either make the right hire or upskill your workforce as per requirements. Yaksha can help you create assessments for role-based, knowledge based and even project-based assessments specific to your domain like banking, insurance and microfinance. No matter the skill-level you are looking for, Yaksha’s assessment platform helps you focus on the right candidates and make informed decisions that can help your business grow. 



Financial institutions and companies around the world have unilaterally agree that adoption of technology into the BFSI sector has influenced its unprecedented growth till now. But to sustain this growth, the BFSI sector needs able, skilled, innovative individuals with the right combination of financial knowledge and highly technical skills. BFSI Companies around the world are clamoring to do just that, find the right candidate or upskill their current workforce. 

What is the next step for your business?  

HR and L&D leaders are finding it difficult to find the right individuals with the financial knowledge and the technological skills required for new and exciting roles in the BFSI sector. Yaksha Assessment Platform brings you the ideal solution where you can create customized assessments based on knowledge or the required role. This enables HRs and L&D leaders to get actionable insights for making the right hire or deciding the right learning path for your workforce. 


How Yaksha Assessments helps you hit the ground running? 

With the Yaksha Assessments Platform, you can create job role-based assessments to evaluate and hire the right fit across technologies that are prevalent in the BFSI sector. For example, you can create role-based assessments customized to suit the needs of the FinTech sector such as Cloud specialist, Database experts, security experts and network engineers, developers etc.  

Whatever your skill requirement, we have you covered.  

Try a demo today!  

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