Banking & Financial system of a country directly impacts the long term growth of the country. The major segments of industry are Banking, Insurance and Mutual Funds. Banking and insurance contributed 6% of the GDP in the financial year 2007-08. The contribution of BFSI sector to GDP has been growing at a CAGR of 12% from 2001 to 2008.
India has 80 scheduled commercial banks, out of which 28 are public sector banks, 24 are private sector banks and 28 are foreign banks. Indian banks are planning to increase the penetration level in rural areas. Microfinance is one of the major emerging areas in recent times.
Insurance sector has grown by leaps and bounds after opening of 2001. Currently there are 24 private life insurance companies and one large public sector behemoth Life Insurance Company of India. LIC has a market share of almost 70% in first year premiums. Private insurers are playing an important role in changing the dynamics of the industry. Intensifying competition and lack of product differentiation has lead insurers to use cost effective distribution channels to improve profitability and increase penetration.
India’s mutual fund market has grown substantially in last ten years and further expected to grow significantly in the future due to low penetration level as compared to other economies.
Dynamic regulatory environment coupled with increasing cost and intensifying competition has thrown new challenges to the sector which companies address appropriately to gain competitive advantage.
New challenges in this sector call for newer responsibilities which in turn call for newer job profiles to be created over a period of time. The emerging job roles in the current economic scenario will not only expect employees to be multi-skilled but also excellent multi-taskers. Although the basic skills required to tackle new responsibilities exist in the system, the need is to re-focus on the challenging environment and adopt a ‘multi-tasking’ and a ‘multi-skilled approach’.
In the financial services sector, new job roles are expected to emerge in fixed income analytics, risk management, strategic management, compliance etc. Apart from the existing job profiles and skills, the BFSI sector would need to focus a lot on risk management and control functions. There would be a corresponding increase in the demand for such services.