Banking, Financial Services and Insurance (BFSI) sector, which is currently valued at $1.31 trillion is all set to create huge opportunities in India; and some financial experts are claiming that this sector will create around 20 lakh jobs in the next 10 years. By 2025, Indian BFSI sector will become world’s third biggest in volume and employment.
Aided by issuance of new licenses in the insurance sector and efforts of RBI and Government to expand banking and insurance services in rural areas, this sector will need a new wave of fresh and enthusiast talent to take the mission forward.
The most important observation which these experts make is that most of existing workforce in several nationalized banks will retire in the next 5-10 years. And these mass scale retirements will create a huge vacuum of banking and financial services experts.
Manipal Academy of Banking, in its study found that Indian banks and financial sector will need 18-20 lakh new hires in the next 10 years. As per their estimates, around 4 lakh people applied for jobs in BFSI sector last year, out of which public sector banks hired 60,000 – 70,000 candidates and private sector absorbed 40,000 applicants. And based on these estimates, 18-20 lakh new jobs shall be created in the next decade, if rural expansion plans of Government are forced into play.
Manipal Academy of Banking Director C S Thammaiah said, “Clearly, Tier 2,3 and 4 cities would be the biggest beneficiaries as most of the existing banks are looking to expand into these cities. Most of our partner banks have seen their per employee productivity going up and attrition coming down through a conscious effort of hiring from tier 3 and 4 towns,”
HR Services biggie Randstad India puts the estimate little liberally, as they stated that BFSI sector will generate close to 7-10 lakh new jobs in the next decade, and this sector will be the top recruiter across all segments. However, with the generation of new banking and insurance related jobs, there will be an immense requirement of support related staffs, which will fuel further chain reaction in the jobs sector.
Randstad India & Sri Lanka CEO Moorthy K Uppaluri said, “With the new banking licenses, which are likely to be issued in the first half of 2014, the banking sector is poised to create big career opportunities in the near future,” He added, “With new banks being set up in Tier 2, 3 and 4 cities, there will be growing demand for business correspondents, sales executives and other banking professionals to reach out to the rural population.”
As per Randstad’s estimates, the biggest momentum in creating new jobs will arise from Mumbai, Chennai and New Delhi-Gurgaon-Noida region.
