Anything Zerodha co-founder and True Beacon Chief Executive Officer (CEO) Nikhil Kamath says grabs attention. Zerodha is the biggest discount broker in the country. Unlike hundreds of startups in India, it has achieved profitability without raising a penny from Venture Capitalists (VCs).
Recently, Kamath shared the Recession Probabilities Worldwide 2023 data to signify the growth opportunity in India, urging citizens abroad to consider moving back to the country. According to the report, India is the only country in the world with a 0% probability of recession this year. Meanwhile, the United Kingdom (UK) and the United States (US) have 75% and 65% chances of recession, respectively.
It shows the resilience of the Indian economy, aided by several factors like domestic consumption and an increasing working class. The Reserve Bank of India (RBI) also deserves credit, with the banking system in India among the most robust worldwide.
The RBI has achieved it through innovation and increased focus on the skill gap in India. Addressing the banking skills gap was vital, as the BFSI (Banking, Financial Services, and Insurance) sector has struggled with a labour problem.
What is the BFSI sector?
The BFSI sector comprises banking, insurance, mutual funds, etc., services. It is a massive contributor to the Indian economy. With a market cap of ₹90 lakh crore as of 2022, the sector is nearly 12% of the GDP. The figure was just two percent in the 1950s, demonstrating its growing influence in the country.
How India Addressed the Gap in Banking Skills
The evolution of banking in India yielded seismic results with the introduction of the Unified Payments Interface (UPI). A banking and payment system like no other, UPI transactions have only increased month-on-month. The value of UPI transactions hit a new milestone of ₹12.98 lakh crores at the start of 2023, growing exponentially from ₹1,700 crores in January 2017.
The number will only grow bigger as smartphones and banking services become more accessible. As a result, there are tremendous opportunities in the BFSI sector. India has a robust banking education system to rely on.
The Indian government, RBI, and various financial institutions have launched many skilling courses to take the banking industry to new heights.
Insurance Institute of India (III) Initiatives
Insurance penetration in India is still less than global peers, making it a significant growth driver for the BFSI sector. Consequently, the Insurance Institute of India (III) offers several courses to prepare enough skilled professionals to meet the growing demand.
The courses offered provide individuals with the required knowledge and skills to work as insurance agents, underwriters, and claims adjusters. From insurance law and risk management to insurance products, the courses cover every facet of the insurance industry.
Depending on the specific role, the salary as a working professional in the insurance sector in India is lucrative and will only increase in the coming years.
National Institute of Securities Markets (NISM)
The Indian equity market has seen unprecedented growth in Demat accounts since the COVID-19 pandemic. With disposable income and the need for alternate investment options, Indians plunged into the capital markets.
The number of active investors and traders in the country has grown significantly, but there’s still room for tremendous growth. As a result, the National Institute of Securities Markets (NISM) has tweaked its course offerings to help professionals achieve their stockbroking dreams and cater to the upcoming demand.
NISM addresses the skill gap in India’s equity markets by arming students with the knowledge of equity, mutual funds, and investments. Professionals can take NISM courses and work within the industry as stockbrokers, mutual fund managers, and investment advisors.
Chartered Financial Analyst (CFA)
The CFA program addresses another banking skill gap in India. For years, India struggled to produce investment bankers, portfolio managers, and financial analysts. However, thanks to CFA, the country now has thousands of CFA professionals capable of driving businesses forward with their understanding of business finance.
The CFA program helps individuals learn investment banking, portfolio management, and financial analysis. After completing CFA, individuals can join asset management companies (AMCs) and investment banking divisions of various banks.
Bankers’ Business Process Services (BBPS) Program
The evolution of the banking system in India has been rapid, but some services, like customer service and banking operations, remain evergreen. The BBPS program offers individuals training in essential services, helping them work as customer service executives, back-office executives, and data entry operators.
Pradhan Mantri Kaushal Vikas Yojana (PMKVY)
The Pradhan Mantri Kaushal Vikas Yojana (PMKVY) is a Government of India (GOI) initiative to arm the population with the necessary industry skills. The program has been instrumental in the BFSI sector, providing training and certification to individuals in necessary banking services.
Consistency is the Next Frontier
The Indian Government and financial institutions in the country have worked tirelessly to create a robust working class having the necessary banking skills. It has taken the country to new heights, but the journey from here to the next goal will require consistency.
RBI and financial institutions in India must nurture talent consistently to help grow the BFSI sector and take India close to the five trillion economy dream.
Smile Foundation and BFSI Training
Smile Foundation‘s livelihood initiative, STeP is focused on BFSI skilling as one of its core training modules. The programme makes the youth lead dignified lives through skilling, upskilling and employment opportunities in more than 400 respectable brands spread all across India.
Karuna Jadhav, Regional Officer (STeP Programme), Pune started off with Smile Foundation as a GDA trainer through a partnership with NGO Matoshree Sevadham Arogya Seva Trust (MAST). She soon branched out into BFSI Training wherein she trained 4 batches in Mumbai, Maharashtra between 2022-23. Karuna was found capable enough to spearhead region-based work and was promoted to the role of a Regional Officer in April 2023.
Starting off her journey as a teacher and football coach at Cambridge English School at the young age of 18, Karuna says, ” I like how working with a nonprofit opens up infinite possibilities. Branching out into different things like understanding the needs of individual beneficiaries, getting in-depth into the banking system of India to be able to teach better, interacting with donors, gaining insight into the management of projects, etc. always keep things interesting for me. I can proudly say that this place allowed me to dream more than my imagination.”
The STeP programme believes in the holistic growth of all involved. The programme cares equally about its beneficiaries and trainers to ensure that everyone benefits and enriches their lives phenomenally.
