What tech does to skills'-deposits in banking sector?

NEW DELHI, INDIA: The banking sector has seen increasing use of alternative channels, such as ATMs, mobile and internet banking which also have added to the incremental human resource requirement in the sector. Innovative banking products have led to some new interesting job roles in the sector. Currently, the BFSI Sector is expected to create additional employment of over 1.6 million during 2013-2022.

According to a report by National Skill Development Corporation (NSDC), the Banking sector in India has evolved significantly over the years and has been a key driver for business growth in the country. The country has a huge demographic dividend which it can reap since 60.3 of the population is in the work age group of 15 to 59 years. While there is a big population that the country has, there is also huge under penetration with only 58.7 per cent of households in banking network. With the high disposable income, the banking sector recorded double digit growth in excess of 15 per cent in each of the last five years.

The report further states that the country saw a mix of public, private and foreign banks impart stability and growth in the banking ecosystem while the network of NBFCs complemented the banks in a huge way.

According to the report, so far PSBs have been the leading employer in the Indian Banking Sector, accounting for more than 73 per cent employees. As the focus shift towards customer-facing and sales profiles, the industry has witnessed a surge in entry-level hiring, which is expected to sustain sector’s growth. Trained people are required to handle several mainstream banking activities (such as cash collection services, transaction-based services, customer care, payment system-related services) that are bundled and outsourced. The Back office and transaction processing profiles constitute a majority of the existing roles in the banking sector.Considering the low levels of banking penetration, expansion through branches and business correspondents (BCs) is likely to generate significant employment opportunities in the sector.

Commenting on the report, Dilip Chenoy, Managing Director & CEO, National Skill Development Corporation (NSDC) said, “The use of technology that has changed the way banking is done. In order to keep up pace with the technology existing bank employees need to be educated and made comfortable in using technology. Alternative delivery channels, such as mobile, internet, ATMs and telephone, have emerged over time and it is required that the bank employees should stay updated on the processes involved in these distribution channels., Industry needs to provide additional training to its employee so as to enable them to scale up to the changing trends.”

“Government’s various initiatives like Jan Dhan Yojna for financial inclusion and other welfare schemes like Pradhan Mantri Jeevan Jyoti Bima Yojana & Pradhan Mantri Suraksha Bima Yojan will further drive the demand for skilled workforce in the country at the entry level jobs. It is about time that we the private and the public sector should come together to ensure a strong trained and upskilled workforce to adapt to these technical and service level upgrades in banking, “he further added.

The report further states that corporate banking, retail banking, treasury, finance, technology and human resource will increasingly require staff with relevant aptitude. Banks need to hire specialist to increasingly match the evolving business context and also those with both core and specialist skills.