By Robin Bhowmik
The BFSI industry continues to evolve rapidly and dynamically in 2024, contributing to the ever-changing nature of the global economy. PWC’s press release predicted India will be in the top 3 domestic banking sectors by 2050 if it manages to sustain its current growth rate. While the BFSI industry prepares for the development, it has two major issues to solve to support the forecast. The skill gap in the existing workforce and the lack of new skilled professionals.
Students aspiring to build a career in BFSI must recognise the technical and non-technical skills the industry demands, comprehend the latest trends and stay updated with the potential future outlook.
Skills to Prioritise for BFSI Upskilling:
The trend of hiring individuals, especially fresh graduates from certain specialisations (namely commerce and engineering), has been noticed in the BFSI industry. However, the practice will not stay for long in the swiftly changing environment. That said, currently, individuals will need a host of both technical proficiencies and soft skills, i.e., customer interaction-centric competencies.
Technical Skills
As per a report, 50% of the skills needed in the BFSI industry by 2027 are still non-existent, which makes upskilling highly significant. With the projection of the industry growing at 26%, upskilling and AI adoption have sped up.
Considering the advancements in digital banking technology and the industry leaning towards technology-based solutions, professionals will require multiple skills, including the following.
- Cloud Banking: Cloud accelerates concept realisation, centralisation, improves operational efficiency, reduces infrastructure costs, and ensures better data security.
- Robotic Process Automation: A report suggests that 80% of leaders in finance have already used or are planning to use RPA. It can automate various banking tasks, improve efficiency, lower costs, and enhance customer experience.
- Advanced Cyber Security: Cybercrimes like phishing attacks, trojans, and spoofing have become key concerns. There has been a 300% increase in ransomware recently. Advanced cyber security hence becomes requisite.
- Artificial Intelligence & Machine Learning: Banks are using artificial intelligence and machine learning to automate routine banking processes. The shift helps boost efficiency and reduce operational costs.
- Blockchain: It can aid in lowering transaction costs, pace up settlement timelines, and enhance privacy and accountability.
- Big Data Analytics: Big data allows banks to better understand customer behaviour, their buying patterns, market segmentation and draft centralised business models accordingly.
Soft Skills
Customers are looking for personalised banking services, fast problem resolution, and a hassle-free digital banking experience. The post-pandemic era saw a massive shift towards digital banking for the convenience it offers. As the popularity of digital marketing remains and automated procedures prevail, professionals cannot overlook the soft skills needed for the job. Skills like these will help restore the human connection while best using the latest technology.
- Effective Communication: While AI and RPA ease the tasks and procedures, professionals will still need to translate complex financial information into easily understandable concepts.
- Critical Thinking: Professionals must possess the ability to analyse critically to ensure informed decision-making.
- Quick Risk Management: Risk assessment and mitigation will become essential in the dynamic landscape of BFSI.
- Business Acumen: Professionals must find an alignment between financial decisions and overall business strategies.
Latest Trends in BFSI trends to stay updated with:
The industry is always adapting to the evolving world economy and changing customer behaviour. Professionals must take note of ongoing trends and adapt timely.
Regulatory Changes
New policies for data privacy, cyber security, and money laundering prevention are being drafted to ensure consumer security and financial stability.
Sustainable Finance
Environmental, social, and governance investments are increasing, and so are green banking initiatives.
Neo Banks
These digital-only banks are enjoying a strong position in the market by offering less expensive banking solutions and making banking more convenient for customers.
BFSI Industry 2024 Outlook for Banking Professionals
Technological advancement and ongoing trends will shape the future landscape in BFSI, which will include many operational changes.
- Collaborations between traditional finance and fintech are anticipated to be fostered.
- More technologies like decentralised finance, quantum computing, and advanced analytics might enter the industry.
- Global economic conditions like inflation, fluctuating interest rates, and geopolitical events will continue to impact the industry and those involved in it.
Banking needs will change, initiating changes in the BFSI industry. Similarly, customers will get used to new banking services as the industry evolves. The ones actively working in the industry, creating the bridges between services and customers, must be aware of changes on all sides. They must notice how the change occurs, understand the reasons behind it, and adapt to it.
Gain industry-specific knowledge and master practical skills at Manipal Academy of BFSI. Creating and maintaining a place in the BFSI ecosystem will require equal dedication toward technical and non-technical upskilling.
The author is the Chief Business Officer, Manipal Academy of BFSI.