We all know what happened globally in 2007-08, the world witnessed a huge financial depression in the form of the US-Sub prime mortgage crisis. It really crippled the global business for a very long time. According to the IMF estimates of that time, the global GDP decelerated to the rate of 5.0. In those times of global financial distress, India and China remained the global drivers of growth. The BFSI is a robustly growing sector. In fact, the Indian banking sector outperformed the Indian Economy with a CAGR of 7% from the year 2000-2008.
BFSI Sector always plays a pivotal role in developing any nations economy!
The BFSI sector of India plays a pivotal role in nation building and its growth. There are no second thoughts about it that this sector is the backbone of our nation’s economy. Banking, Insurance and Mutual Funds industry collectively make the robust BFSI sector of the country. Banks are the major drivers of our countries business and economy. They bridge the gap between the capital requirements and the industry.
In a way, it is the banks that fuel the Industries. Its the credit extended by banks which boosts the long-term productive environment of the industries. This sector, needless to say, requires some major skills for its proper functioning and operations. A clear difference in this sector which makes its requirements different from other industries is its very high reliance on efficient and skilled manpower. If we broadly study the structure of this sector then we can conclude that this sector requires the skilled workforce more than any other sector. This industry is driven by technology and market dynamics. It needs huge amounts of public dealings and interactions, for this, there is always a requirement of skilled manpower.
Skill Requirement and Skill Gaps in this sector
Owing to the nature of banking industry or the whole BFSI sector, traditionally they have been hiring highly qualified resources like CA, MBA and other similar degree holders. However, witnessing the recent robust growth in the sector, banks have started to outsource some of its functions to third parties. This outsourcing has opened avenues for less educated but trainable manpower who can now earn a decent earning by getting meaningful employment.
These people are generally engaged in marketing and sales and customer support. However, there are other skills also which are now in demand as banks outsource them to third parties. In general, there is a huge skills gap in base knowledge of banking sector, which needs to be taken care off. For this, the government of India in partnership with AICTE has come up with NEEM Scheme. This scheme enables the BFSI sector to hire on the job trainees and train them according to their needs. It creates a win-win situation for everyone.
The banks get the best of the employees and trainees can train without paying expensive fees.