The Indian banking sector is in a state of transition, with new-age, innovative banking models ready to be rolled out. In 2016-17 alone, as many as 11 payments banks are scheduled to be launched, in addition to 10 small finance banks. The sector is expected to generate a requirement for over 20 lakh jobs in the next 5-10 years. This new talent requirement will be a mix of traditional banking skills and competencies, along with new-age skills focused on digital banking and technology-driven solutions.
While core banking skills still remain relevant, the focus is shifting to digitisation and innovation, keeping in mind the recent trends in the industry. To reach out to customers at their convenience, banks have to and are aggressively going digital.
With the government’s push towards making banking services available to all, rural banking has become a focus area. The needs of customers in this segment are different and, hence, require insight and a deep understanding of the demographics of the relevant segments. The services for this segment range from basic banking facilities, remittance products, and credits and financing for agricultural and agro-based ventures.
In banking, the services and products vary depending on the customer segment, which ranges from corporate to small & medium enterprises to retail individuals. Each of these segments requires differentiated financial solutions. The skills and competencies of individuals catering to each of these segments are different. There has been a paradigm shift in expectations of retail customers in the form of their banking needs. While customer relationship partners are required to offer customised banking solutions to these customers, there has also been a shift towards internet and mobile-based banking.
Technology, analytics & information security
Besides this, owing to the sensitivity of customer information and the ever-increasing data security threats, confidentiality also gains utmost importance. Information security, therefore, is usually a separate entity in most organisations; it is a part of risk-management strategy.
Deriving meaningful and predictive insights from large data is an emerging area in the field of information technology and analytics. This is applicable not only in the banking sector, but across all industries and sectors. In the years to come, it will become a key driver for strategy formulation to product development, design and delivery, risk management, and ‘augmented’ experience.
Connecting with the millennial segment
For millennials, banking is all about convenience—a seamless user interface akin to that of games or apps. They value transparency and minimal processes. While convenience can be delivered through mobile apps and digital banking, the latter is impacted by how information is provided by relationship managers, who need to be proficient in product and process knowledge, highly credible and tech-savvy. They need to demonstrate the highest levels of integrity.
In today’s age, where banking transactions happen via a Twitter hash tag, agility and strong backend processes are important. A high level of adaptability to digital media then becomes a must for any banker.
Creating a sustainable talent pipeline
The government has initiated several path-breaking skill development programmes across industry/service segments. Banks need to participate in these initiatives to create a sustainable talent pipeline, equipped with the requisite skill and attitude, not only for the traditional banking roles, but also for the emerging empowering role of the banks of the future.
Banks partner with government agencies to skill workforce from all over India and make them employable. Banks have the responsibility of honing the right attitude and competitive skill-set in their employees through a progressive, knowledge-banking approach, and value-centric training of innovation, agility and ownership. They need to employ fresh training approach, combined with technology and updated design and execution, to keep them ahead of the curve.
The author is group president, Human Capital Management, Yes Bank