Thriving in the BFSI Industry: Essential skills for today’s professionals

In India, the financial services sector is anticipated to experience notable, sustainable advancement in the decades to come. One of the biggest employers globally, the BFSI (Banking, Financial Services, and Insurance) sector is a vital part of the worldwide economy. Bank assets in India amounted to approximately 2.6 trillion US dollars in the fiscal year 2021, following a decrease in the fiscal year 2019. This highlights the potential growth of the industry over the years. 

Although there are going to be numerous banking sector jobs and employment openings in the BFSI industry, the skills needed in the BFSI sector of the future will be quite distinct. Less branch-based interactions with clients and more digital encounters will result from growing digitization, process automation, and technologically driven initiatives. Today, online banking can be used to perform nearly half of conventional branch banking operations. Future growth of this tendency toward a greater digital-only presence will be exponential, giving rise to a plethora of job openings in this sector.

You can also read: Emerging trends in the BFSI sector.

The need to bridge the skill gap in the BFSI sector

The banking, financial services, and insurance (BFSI) sector has undergone significant transformation in recent years and is rapidly embracing digitization by adopting cutting-edge technologies. BFSI companies are readily taking on modern-day technologies such as Blockchain, Robotic Process Automation, Big Data Analytics, Artificial Intelligence, and Machine Learning, among others, to cater to the immensely changing needs of consumers. The conventional procedures in the BFSI sector that have been around for a long time are quickly being substituted by innovative technologies and advanced processes to simplify complex issues and improve customer satisfaction. Thus, the major dynamic changes in the processes and services of the BFSI industry demands skilled professionals with an updated knowledge base who are properly aware of the nuances of the disruptive technologies in the sector. 

But presently, the BFSI sector is facing the grim challenge of bridging the demand-supply gap of skilled and experienced professionals. According to a PwC report, 72% of CEOs of financial services are concerned about the availability of professionals with key skills in their industry. There is a significant shortage of professionals with expertise in digital technologies, such as Data Analytics, Blockchain and AI and Machine Learning. The BFSI industry must ensure that its workforce is equipped with the necessary skills and expertise to keep up with these changes to remain competitive and satisfy the ever-shifting needs of the sector. BFSI companies must take proactive steps to train and upskill their workforce. BFSI companies must adopt a culture of continuous learning and innovation to allow employees to stay up-to-date with the latest technological developments.

Skills required to excel in the BFSI sector

Individuals need a broad spectrum of skills to succeed in today’s demanding BFSI market. Some of the essential skills needed in the banking sector of today are discussed below:

• Financial skills & knowledge

The ability to analyze financial statements and evaluate the financial well-being of organizations is an essential skill for professionals in the BFSI industry. This calls for knowledge of financial concepts like ratios, economic modeling, and projections. Additionally, one must be able to recognize and manage financial risks that might affect the organization’s financial stability, such as debt defaults and unexpected market downturns. Financial risk analysis is also essential for the BFSI sector’s compliance with legal standards.

A thorough grasp of financial concepts and being able to execute them in practical settings are prerequisites for several job roles within the BFSI industry. Financial analysts, risk managers, compliance officers, investment managers, and customer support representatives are some of the job roles for individuals proficient in Financial skills & knowledge.

• Keeping up with trends in the banking industry

The BFSI sector is very dynamic and perpetually shifting, with new products, technologies, and norms appearing all the time. Professionals in the BFSI sector can establish themselves as leaders in their chosen fields and make decisions that are favorable to their organizations by keeping up with market trends. Additionally, they can adapt to shifting customer requirements and preferences and guarantee compliance with new regulations. 

Staying apprised of banking industry developments can also aid professionals in finding new job possibilities, advancing their careers, and building strong professional networks. Market research analysts, business development managers, product managers, digital transformation specialists, and innovation managers are just a few of the job roles that demand employees to keep up with industry trends and cutting-edge technologies to adapt to shifting customer needs.

• Insurance Management

Insurance management is essential for securing the financial health of insurance firms, safeguarding policyholders, and fulfilling legal obligations. Insurance management specialists in the BFSI industry are in charge of administering and supervising insurance-related goods and services. This entails creating and administering insurance solutions, determining and controlling risk, and managing claims. Insurance management requires working closely with clients to comprehend their insurance requirements and offer suitable products and services. 

Specialists in this field evaluate and control risk, which includes identifying and reducing potential dangers that might jeopardize the financial health of insurance businesses. A thorough grasp of insurance concepts, in addition to a dedication to continuous learning and professional growth, is required for job roles in this industry, such as those of an insurance underwriter, claims manager, risk manager, actuary, or insurance agent.

• Digital skills

In recent years, the BFSI industry has undergone a substantial digital transformation, mandating the holding of digital skills by pros. Employees who possess digital skills can use technology to streamline procedures, analyze data, and enhance client experiences. Digital skills are essential to maintain business relevance and competitiveness in a world that is becoming more and more dependent on technology. Also, professionals with solid analytical skills can make sense of the massive amounts of data that are produced every day and use it to guide their decisions by analyzing customer behavior, spotting patterns, and offering perceptions that can assist organizations in making data-driven decisions.

Professionals who stay updated on emerging technologies can recognize opportunities to increase customer satisfaction, operational efficiency, and competitive advantage. These days, having strong digital skills is crucial in almost every business. Web developers, software engineers, data analysts, digital marketers, social media managers, UX/UI designers, cyber security analysts, and cloud computing specialists are a few careers that require digital abilities.

Pursue an online MBA in BKFS for a flying career

The BFSI sector is a fast-paced and rapidly evolving industry that is opening up various rewarding and exhilarating job opportunities for professionals. The online MBA in BKFS program by T.A. Pai Management Institute (TAPMI) enables working professionals to upskill themselves and acquire pertinent knowledge according to their preference with four industry-focused electives. Graduates can pursue a range of exciting roles in investment banking, asset management, corporate finance, risk management, and financial technology after successfully completing the program.

You can also read: High-paying jobs in the BFSI industry & how MBA-BKFS can help you.

Banking and finance professionals should enroll in the online MBA in BKFS program from TAPMI to advance to managerial roles or move to leadership positions in the BFSI sector. This program is a great choice for working professionals looking to improve their earning potential and job prospects, owing to its flexibility and convenience. The course equips the populace with the expertise they need to succeed in the rewarding financial industry.