BFSI sector set to offer 1.6 million jobs!

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March 17, 2021

The National Skill Development Corporation (NSDC) estimated that the Banking, Financial Services, and Insurance (BFSI) sector will need an additional 1.6 million skilled workforce by 2022. Low levels of banking penetration and expansion of branches are the main reason for the generation of employment opportunities in the sector. As the 10 public sector banks have merged and formed four large banks, the employment opportunities in PSB's have reduced. But the overall BFSI sector will offer millions of jobs in the next two years. Banks have shifted more towards customer-facing and sales profile due to which the industry is witnessing a surge in entry-level hiring. The increasing use of ATMs and internet banking has added to the incremental human resource requirement in the sector.

Every year, over 30 lakh students write multiple bank recruitment examinations out of which only 0.5% of the candidates clear the exams. But looking at the exponential growth, private sector banks would continue to hire and the BFSI sector will also offer plenty of employment opportunities. India's GDP is set to increase from 2%in 2009 to 13% in 2050. So, with this rapidly growing economy, every sector needs an additional workforce. More than 50% of the jobs need reskilling due to changes in technology and around 20% of jobs would be new roles in nature. The new roles may include wealth management experts, cybersecurity, robot programmers, and blockchain architects. Some jobs may be extinct as technology will take over. The jobs that will disappear and may reduce are data entry, data verification, teller, and underwriters. The jobs that require reskilling include loan officers, customer associates, and IT specialists. Although most of the recruitment happens through campus, job portals, and consultants, it results in higher attrition in the entry-level because candidates lack training. This results in low productivity and high HR costs. Hence, banks prefer candidates who pursue certificate courses in banking and finance.