According to Krishan Mishra, CEO of FPSB India (Financial Planning Standards Board), India is facing a significant issue of unemployability in the financial services sector, with nearly 18 lakh jobs remaining unfilled last year.
In spite of the creation of 46.86 lakh jobs in the sector as reported by the National Career Services portal, only 27.5 lakh were filled. This gap shows lack of qualified candidates for available positions.
India Faces Massive Shortage of Financial Planners
Mishra pointed out the constant demand for trained professionals in banks, insurance companies, brokerage houses, and mutual fund companies. He highlighted that an online job search reveals about 40 times more job opportunities than the number of Certified Financial Planner (CFP) professionals available. FPSB India, a subsidiary of the global Financial Planning Standards Board Ltd, look after the international CFP certification program. Presently, India has 2,731 CFP professionals compared to 2.23 lakh worldwide. By 2030, India is anticipated to need around 1,00,000 CFPs, with only about 10,000 likely to be available due to the high demand.
Financial Planning Gets Boost as India Focuses on Skill Development
Mishra highlighted the need for financial education, considering that personal finance was often leaved in India, with financial planning falsely considered only for the elite. In reality, wealth management is for the elite, while financial planning is crucial for everyone.
GIFT City in Gandhinagar, recruiting around 6,000 people in financial services, is anticipated to create 1.5 lakh jobs in the next five years. FPSB India and the Indian Institute of Management Ahmedabad (IIMA) signed a strategic MoU to launch capacity-building initiatives for professionals in financial planning and investment advisory services to address the skills gap. This cooperation will include training programs, applied research, and focused workshops on contemporary themes for financial professionals.
