Although India Inc. is in the midst of turmoil, industry experts believe the Indian BFSI sector has huge potential and the current meltdown and sagging sentiments are just a passing phase.
Ups and downs have always been a part of the corporate world. But rising out of troubled waters is winning in the true sense. Though not directly affected by the global crisis, the BFSI sector in India has been under significant pressure. However, industry experts predict that this may not be for long. The global economy and the financial sector in particular have witnessed significant changes, and are going through a paradigm shift. The current times have given the industry an opportunity to re-orient and build trust and confidence among its client. Currently the insurance industry, like the telecom sector, is one of the sunrise sectors. The sector has great potential as the insurance penetration is abysmally low, around 5 per cent of the GDP.
New challenges call for newer responsibilities. This in turn calls for newer job profiles to be created within the sector. The emerging job roles in the present crisis 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 challenges environment and adopt a ‘multi-tasking’ and a ‘multi-skilled approach’.
In the financial services space, new job profiles will merge in fixed income analytics, risk management, strategic management, compliance etc. Apart from 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 demand for such services.
A group head of a financial services company opines there will be an increase in the demand for wealth managers. The private wealth management industry is witnessing tremendous growth. Clients are constantly on the lookout for broader investments horizons’ expect positive returns and accountability from the service provider. Moreover, they also want to be a part of the decision making process for their portfolio.
Most firms are focusing on productivity and re-skilling the existing manpower. This is the best time to assess, train and redeploy people from the existing resources, and make them ready for the upswing which the market would witness in the long run.
With new job roles comes the need to acquire new skills. And experts say that more than ever, it has now, become critical for employees to constantly sharpen their axe by adding new skills. Employees with enhanced and diversified skill sets are positioned better to take up critical and larger responsibilities. This assumes further significance in the context of institutions adopting re-deployment of resources as an optimization strategy. To an extent, the skills pertaining to risk management and other control functions would be in demand in the near future and will provide an impetus for institutions and organizations to focus on such skill building.
The competency, Knowledge and skill levels of a wealth manager would be challenged by the client, thus emphasizing on specialized training to perform the same role. The time is not far when a professional qualification like CFP (Certified Financial Planner) would mandatory for performing the said role in India as well.
The BFSI sector certainly offers a ray of hope to fresh graduates who are ready to take a plunge in the industry. On the other hand, companies are also going all the way to encourage freshers, by assigning challenging projects in diverse areas to develop their skills. Entry level executives should look forward to an extremely fast paced challenging enterprising and remunerative career in the BFSI sector. Once freshers join an organization, their transition into the industry can be facilitated through structured all round training, cross department projects and assignments, mentoring schemes and regular feedback through performance management systems.
In the context of the challenging global economic environment, the Indian financial sector has remained relatively resilient. Although the past few months have not seen in favor of the sector, most industry experts are highly optimistic about its potential, and strongly feel that it will regain ground in the near future. Moreover, they foresee expansion within the sector which will not only create new job opportunities for young talent, but will also offer a major scope for skilled, knowledgeable and experienced workforce to overcome challenges of the world economy.