How to build a future-proof managerial career & lead in the BFSI industry 

During the Covid and the post Covid era, there has been a drastic transformation in the BFSI sector. People normally were very hesitant to take risks as they weren’t aware of the options available for investing in insurance. However, during the pandemic, people couldn’t go out and they had more exposure to digital platforms as they didn’t really have any other choice presented in front of them.  

Digital platforms specifically became a hit among homemakers who began researching more about it and started investing into insurance. In the past few years, digitalization has kept people connected through so many platforms and that has helped the BFSI sector grow multifold.  

There has been a massive boost in the BFSI sector after 2020, as the Covid scare led to a lot of people considering taking up insurance for the safety of their families. For instance, international professional services network Deloitte has seen revenue doubling year on year. This is the best revenue increase result in the history of the organization. The hybrid working system is aptly a contributor to this result. Companies can hire more as people can work from home and in the office space simultaneously, without having to spend extra money on infrastructure. In simple words, companies are spending less and in return receiving greater revenue, helping the BFSI sector grow massively. In addition, current trends in the new-age BFSI sector have also contributed to its growth.  

Digital solutions: Every organization in the BFSI sector at this point is looking to digitize their efforts and want customers to experience their services from the comfort of their homes. To an extent, even customers don’t want to step out of their homes since digitalization has solved all physical barriers. It has enhanced customer experience and this trend will be prevalent across industries.  

Big data analytics: Apart from digital solutions, there has been a huge focus on big data analytics, and it is technically seen as the future of the BFSI industry. There is so much data available in the market currently and if all this data is in the hands of a professional who knows how to extract relevant information from it, it helps organizations stay ahead of their competitors.  

Banking applications in self-service: All banks have tried to bring every possible offering of theirs on a banking application and they’re doing well with it because of user-friendly interfaces that are easy to understand for customers of any age group. Banks are doing this with tightened security which is highly commendable. Be it fund transfer, bill payments or recharges, a 24×7 app is at our fingertips.  

Blockchain technology:  Blockchain technology is currently making everything so much faster and a lot more secure. Our government is currently looking into digital currency, and if that happens, money transfers will become smoother, even internationally. With blockchain technology, the BFSI sector can further grow to unimaginable levels. It is currently an untapped resource that comes with great potential.  

Payment banks and FinTech partnerships: They have done so much for the BFSI sector. Banks that could not go beyond the urban cities into rural areas and are able to reach every corner of the country. This has helped banking services reach more doorsteps.  

The challenges 

However, when we come to the challenges of the BFSI sector, cyber security has been the greatest threat because of digitalization. Security breaches are on the rise, and it is a great threat to the banking and finance sector. The BFSI sector is trying hard to face these challenges and keep up with technology. A huge cybersecurity team is required to ensure the security of extremely sensitive data. 

Competition and innovation are another challenge. Even though banks offer almost the same kind of services or experiences to customers, innovations will make an organization stand out. For instance, one bank might offer a wealth manager service, something unique that not all banks offer. The competition in the BFSI sector is extremely high and constant innovating is required to stay ahead.  

Banks and non-banking financial companies (NBFCs) are all usually under heavy scrutiny from the government because the data they possess is extremely sensitive and if that data leaks, it can cause a lot of harm. There are several restrictions from the government and irrespective of those regulations, banks must thrive so they’re constantly looking for people who can help them do that because of which there are several hiring opportunities in the BFSI sector.  

Wrapping up 

The BFSI industry as a whole is on an upswing. The recent union budget highlighted the fact that there is a 70% increase in UPI payments from the last year to this year which is a huge testament to the kind of digital opportunities. With the advent of Neo Banks and FinTech, the competition is high and they are looking out for skilled professionals who can bring about innovation and find better solutions to the end customer. 

Note: This blog is based on insights from Vibhusha Singh Chauhan, Solution Advisor at Deloitte India.