Looking within: The lack of talent in the BFSI industry and the urgent need for skilled professionals
The Indian BFSI (Banking, Financial Services, and Insurance) sector is evolving and transforming rapidly. A recent PwC report stated that India is all set “to become the third-largest domestic banking sector by 2050, after China and the US.”
The rapid growth and expansion of the BFSI industry sector are being driven by tech-powered digitalization and dynamic consumer demands. Banks, financial services, and insurance firms are now swaying under the influence of disruptive technologies such as AI, cloud-based IT infrastructure, Internet of Things (IoT), Big Data Analytics, Robotic Process Automation, and DevOps/Agile.
In fact, numerous big players in the BFSI industry have already started exploring and experimenting with these emerging technologies. Thus, it quite safe to say that in the upcoming years, an increasing number of BFSI firms will migrate towards a more digitalized and tech-driven infrastructure.
While this is great news for the country’s economy as the BFSI transformation will unleash new opportunities, it will also come with unique challenges, the primary one being skill-gap. So, what is the need of the hour?
Re-training the existing workforce and hiring professionals with advanced qualifications can help BFSI companies navigate through this transitional phase.
Today, new-age technologies like AI, Blockchain, RPA, and Cognitive Analytics are functioning in areas like online payments/transfers, ATM transactions, compliance, and other such banking and financial functions. Naturally, banks, financial services, and insurance companies need qualified professionals who understand the nuances of new technologies and implement them correctly to design pioneering solutions.
The skill-gap challenge
So far, BFSI companies have always hired candidates (usually, graduates) from a select few specializations, the two most prominent ones being commerce stream and engineering (Computer Science/Information Science/IT). However, this practice will no longer hold, given that the industry’s dynamics are changing quickly.
According to a 2018 report by TeamLease, the BFSI sector will create nearly 9 lakh jobs by 2022. New jobs will crop up as a direct result of the ongoing technological advancements in the industry.
However, despite the enthusiastic adoption of emerging technologies in the BFSI domain, the enthusiasm to ready the future workforce (at an educational level) to work with these technologies is missing. Not only do graduates lack the technical know-how and expertise, but they also lack essential soft skills that are crucial in the present scenario where ‘customer’ lies at the heart of everything.
The current system demands both technical expertise and customer interaction-centric competencies. Hence, professionals aspiring to be in the BFSI sector must be well-versed with the latest tech developments and acquire soft skills like communication, customer support, and customer relationship management.
Thee skill-gap in the BFSI sector is more pronounced in niche roles like Data Analytics, Machine Learning, Industrial Relations, and Risk Management. As more specialized job roles continue to emerge in this sector, the demand-supply gap will only worsen. Companies can tackle this dilemma in two ways –
- They need to encourage upskilling of existing employees
- They need to hire professionals with advanced degrees like MBA in Digital Finance & Banking (DFB).
How can an MBA in Digital Finance & Banking train the future workforce of the BFSI industry?
MBA programs are multifaceted in the sense that they include several specialization areas, including marketing, sales, finance, business operations, business strategy, supply chain management, human resources, and IT management. Thus, aspirants who opt for an MBA in Digital Finance & Banking will be trained to understand the workings of banks, finance, and investment firms from a 360-degree perspective.
From business operations to sales – they will be introduced to all aspects of the business within a financial setting. Candidates will carefully study how these companies operate, their goals, the main obstacles, the target audience, and so on. They will learn to develop the requisite skills, mindset, and business acumen to address the challenges unique to the BFSI industry.
An MBA in Digital Finance & Banking is a two-year course specially designed to include industry-specific content. The course modules will be based on advanced topics like Artificial Intelligence in Business, Blockchain and Cryptocurrency, Data Visualization in Finance, Financial Management & Valuation, Fintech Ecosystems Management, Digital Fraud & Risk Analytics, and Design Thinking & Leadership for Business. Apart from this, candidates will also gain hands-on experience while working on case studies and real-world industry projects.
Like all MBA programs, the MBA course in Digital Finance & Banking will also include one-on-one live sessions with faculty members and top industry mentors. Mock interview and resume building sessions are also intrinsic aspects of MBA programs. These interactive sessions play a crucial role in the overall grooming of candidates – they learn the art of communication, which is pivotal in building customer-brand relationships.
On course completion, MBA graduates acquire all the essential skills required to survive in this changing and competitive industry. They are excellent team players, managers, leaders, speakers, and marketers. This is why MBAs specializing in Digital Finance & Banking are urgently needed in the BFSI sector. With their extensive domain knowledge and niche skills, they can mobilize the new-age technologies to aid the transformation of the BFSI sector.