The Banking, Financial Services and Insurance (BFSI) sector across the globe is ever blooming. Especially considering the digital boom that has happened in the past decade, new innovations have rendered the sector rife with opportunities. According to sources, the BFSI sector is projected to create 1.6 million jobs by the year 2022.
Do you know what kind of skills you need to thrive in this sector? What are the domains that fall under this sector? What kind of job profiles can you expect if you bag a placement in BFSI? How do you prepare for a career in this sector? Find out in this article.
What profiles comprise the BFSI Sector?
- Corporate Banking
Corporate Banking includes all services and solutions offered to corporations and companies. It is a specialized form of banking which includes several profiles such as accounting, treasury management, cash management, etc.
- Retail Banking
Also known as Consumer Banking, this refers to services offered to customers. Retail Banking offers opportunities in strategy and planning, digital marketing, wealth management, etc.
- Investment Banking
Investment Banking makes up for a specialized form of banking tasked with capital creation for individuals or companies. Mergers and Acquisitions forms an important part of Investment Banking. Sales, joint ventures, etc. are some of the profiles you can expect to assume if you decide to pursue a career in Investment Banking.
- Other Financial Services
Other than Banking, Financial services include a multitude of profiles, ranging from Business Development, Treasury Management, Financial Analyst, etc.
Banking and Finance is a very large sector, comprising of so much more. The above is just an overview; each section is a sea of opportunities, each one unique in its own ways. However, the advent of technology has strongly affected the BFSI sector.
How is Digitalisation affecting the BFSI sector?
Today, we have ample ATMs across the world. However, back in the day, there would be individuals known as tellers (also cashiers in some cases) who handled cash directly. From automating cash withdrawal, we have come a long way. The Banking Sector is seeing a rapid digital transformation.
Let’s assume you want to invest in Mutual Funds or invest in stocks. You are free to do the same by simply downloading an app and proceeding with registration and investment, all at the tip of a finger. Not just that, almost every bank in the country is racing to develop their own apps for customers to make their banking experience as quick and comfortable as can be. From starting a bank account to making payments to making investments, apps serve almost every purpose that a bank is responsible for. With the pace of progress, it is very much possible that people in the future might not have to ever visit a bank for their needs.
- Electronic Payments
Remember when restaurants or stores would ask if you’re paying by “cash or card”? Those aren’t the only methods of payment available to us today. From the likes of PayTM, where you simply scan a QR code to make the payment, to contactless credit cards, where you just have to tap the card to the machine to make the payment, innovations in payment methods have made transactions extremely easy. It doesn’t end there; many e-commerce websites have introduced their own currencies, using which give you additional discounts, thereby attracting more customers to use said currencies. Every year, new innovations are introduced with a customer-centric approach.
- AI and Automation
It’s no surprise that AI is no longer an element of sci-fi. Despite being a very nascent version of what we read about in sci-fi books, AI today is quite sophisticated and serves multiple purposes. From automated responses on customer care hotlines to chatbots to help solve your problems, AI and automation are gradually changing the face of Banking. AI also plays a role in analysis and assessment, which is affecting the way companies do business.
Ask any major player in the industry and they will tell you that the future of banking is digital. With the world inching towards a techno-driven future, it’s only natural for the Banking Sector to embrace technology.
What skills do you need to thrive in the BFSI Sector?
- Analytic skills
Analysis plays a significant role in Banking and Finance. From Risk Management to Forex, analytics is key to this Sector, and having strong analytical abilities will help you sail smoothly in your career.
- Ability to understand the Market
It is a no-brainer that Banking and Finance depend heavily on how the Market behaves. To thrive in the BFSI sector, you have to learn how the market functions. The ability to study and analyze the market is a very desirable skill to have, especially for someone who wishes to make a career in the BFSI Sector. It is essential that you are up to date with current affairs--not just in your industry, but in general--as the Market is deeply affected by happenings around the globe.
- Adaptability to Technology
Technology is rapidly evolving. Being able to adapt to constant innovations is a very desirable skill to have. It isn’t just the ability, but also the willingness to try and learn as and when the need arises. With a sector that runs so rapidly and is changing constantly, you cannot afford to get bogged down by evolving technology. Adaptability to Technology is a desirable skill that is essential not just for BFSI, but for any job profile in today’s techno-driven world.
The digital transformation of the BFSI sector is gradual but significant. Navigating a career in this ever-changing, ever-growing sector can be quite tricky, but the benefits are certain. Recognizing the need of the sector, B-Schools are introducing specialized courses in BFSI to prepare interested students for their careers.
Just this year, IMT Ghaziabad has introduced a PGD-BFS (Banking and Financial Services), which focuses on educating its students regarding the various areas of management related to Banking and Finance. In addition, it offers students introductory courses in Banking and Finance, as well as electives such as risk management, treasury, and forex management, macro-economic environment and economic policy, etc.
Unlike a conventional PGDM in Finance, the PGD-BFS is structured differently. Students are taught through simulations, as well as a course on Bloomberg Terminals with practical applications. At the end of every course, there are guest lectures and talks by experts from the industry, organized for the benefit of the students. All in all, the PGD-BFS aims at providing a holistic learning experience to students who are interested in making a career in the BFSI sector.
What do you think? Do you have the relevant skills? Are you prepared to enter the BFSI sector? Leave your comments below.
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