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