Due to on-going economic reforms, shifting demographics, and quick-moving technological advancements, the BFSI (Banking, Financial Services, and Insurance) industry has been through a rapid transformation. Regulatory concerns, technology advancements, fierce competition, operational risk, and labour issues are just a few of the numerous challenges that banks, in particular, are currently confronting.
It is crucial to maintain the workforce with the necessary training and tools, as well as current knowledge and information, about each of these difficulties.
According to the World Bank, India has one of the quickest rates of expansion for commercial bank branches worldwide. Of course, during the past few decades, employment has increased in the Indian financial system as well. By 2022, it will have become one of the top employers and created more than 20 lakh new employment.
There will be an increasing need for sales executives, business correspondence, and other banking personnel to reach out to the rural populace as new banks are opening up in every other city. Despite having ample room for expansion, the industry is predicted to confront significant workforce issues.
Role of Banks in BFSI:
Since employees are the main stakeholders in a bank, their happiness is crucial to its success. Therefore, banks must prioritise hiring, training, development, and employee retention.
The serious skill shortages in the system must be effectively addressed by the BFSI sector. It takes the application of new technology to improve time management in the workplace. The fast growing economy, dynamic technological development, and skill improvements make it harder for employees to adjust to the workplace culture. In the Indian financial system, banks have an operational loss of 7% as a result of human error.
Employees should receive adequate training to reduce such losses and comprehend the impact of human mistake on profitability. By conducting a thorough review of their training needs and setting goals for the amount of worker days they spend in training, banks can address these problems.
Study Report
The global BFSI market for digital transformation was estimated to be worth $52.44 billion in 2019 and is expected to rise to $164.08 billion by 2027, with a CAGR of 15.4% between 2020 and 2027. The National Skill Development Corporation (NSDC) stated in its study that it is anticipated to generate approximately 1.6 million new jobs between 2013 and 2022.
One cannot ignore the rising demand for sales and marketing positions as banks and insurance businesses promote m-learning (mobile learning) and AI-driven products and services. In fact, roles in sales and distribution are predicted to rise by 22%. The industry's growing need for talent is only dimly fulfilled by the small pool of experts ready to work in sales.
The pressure to meet goals is not the only thing that makes sales professionals nervous; there is also a disconnection between what they have really accomplished in the workplace and what is expected of them.
Important Features of BFSI:
· Analysing abilities: An employee who is analytically inclined, has mathematical prowess, and is quick to learn performs significantly better than one who is fully informed but unable to analyse.
· Being at ease with technology: The development of technology has affected every industry. So having flair for picking up and comprehending new technologies can be advantageous.
· Outstanding communicator: Verbal and written communication abilities are helpful for getting along with clients and co-workers. Effective communication is crucial for salespeople because it increases their chances of getting others to pay attention.
· Being friendly: Excellent people skills are needed in the BFSI business. One must be able to empathise, be patient, listen, and be able to relate to others.
The BFSI industry is not an evenly distributed company where every employee performs the same duties. Each division demands a particular set of key competencies.
Challenges faced by the BFSI sector
The Banking, Financial Services, and Insurance (BFSI) sector is no exception to the rule when it comes to corporate workforce training difficulties, many of which are specific to that sector. These sectors are organised and administered in a way that sets them apart from other sectors in a number of ways, thus they face different issues that need specialised attention.
Sales representatives in various locations
These days, multinational teams and matrix architectures are common among BFSI companies. This poses new difficulties because instructors are frequently required to conduct classes for a group of students.
Contrarily, it can be challenging to simultaneously welcome participants through video conferences from other cities because face-to-face training abilities are different from those needed when interacting with a group via video. Access to training can be challenging due to their employees' different backgrounds and locations.
Restrictions due to regulations and compliance
The banking and financial sectors routinely deal with audits and rapidly changing regulatory frameworks throughout the year, needing training that is just as swift and effective. It is essential to have the capacity to quickly and simply update information without fully reorganising the course.
The technologically advanced generation
The evolution of the workforce, in which the millennial makes up a sizable share, represents a transition. The tech-savvy workers of today seek out fully digital, on-demand solutions. They differ from previous generations in terms of thinking, needs, and technical competence, but they also have a tendency to be erratic when it comes to employment.
Ensuring training of the staff
Each employee must successfully complete their training in full. It can appear difficult to have a comprehensive picture when training is offered on a broad scale, either nationally or internationally.
Short time
Because every minute spent away from the desk results in missed opportunities for revenue production, training a worker whose position requires them to work in a bank's trading floor or the dealing room of an investment firm can be extremely difficult. In a similar vein, sales staff members rarely have time for in-person training because they are constantly on the road.
Opposition to change
The majority of businesses in the banking industry have a lengthy history and staff members who have worked in the sector for many years. Along with it, resistance to change may arise as new training schemes and programmes are implemented. A fondness for established procedures and customs might lead to problems.
Adding to current courses
It's not necessary to postpone the beginning of a lesson if a sizable portion of already completed training calls for a supplement or an unanticipated update.
Massive amounts of information
Each employee is needed to maintain the high standards of training and knowledge set by the BFSI sector. The process could seem intimidating.
Solution and strategy for successful training, BFSI
Partnership with academic institutions
By using the job profile as a guide, it aids banks in pulling the precise skill set. The training period for newly hired staff will be shortened thanks to the courses created by academic institutions in partnership with bank personnel, saving banks money.
Training must be quick, and the outcomes even quicker
To meet the demands of different people, it must be provided at various time intervals. As a result, digital learning enables quicker on-boarding, a sharp decrease in operating costs, and simpler customer acquisition.
L&D and AI
While automation and artificial intelligence (AI) can best accommodate the complicated needs of customers, businesses must also think about how they can advance their training initiatives to make learning and development (L&D) efficient and individualised.
L&D teams can provide individualised learning that concentrates on critical abilities to prepare employees for the future through the use of an AI-powered learning experience platform. They can create their own learning routes by accessing specific content depending on their learning preferences and ability gaps.
eLearning
In large parts of a financial company, e-learning-based training has shown to be a solution to the issues caused by instructor-based training. You may rapidly make modifications and apply them to all of the courses using this. The sales crew can also access the courses whenever and wherever they choose by downloading them to their personal devices.
Access to several devices
It is simple to make sure everyone is on the same page with multi-device access and an authoring tool that has built-in analytics functionality. Learners' interest is piqued and concept retention is increased through informative, interactive, and infographic-based information.
These platforms can also provide sales teams with on-demand information, allowing new hires to immediately provide value. It provides a way to raise engagement levels, guarantee regulatory compliance through microlearning, and address many of the problems BFSI organisations confront.
Staff participation
How can you guarantee the effectiveness of e-learning while maintaining staff engagement? By segmenting the material into smaller courses and incorporating tools like quizzes, animation, and moving image content, the training will appear less daunting and be simpler to understand.
Little strain is placed on team resources while updating and launching small portions of courses including video tutorials into the creative training. They are readily available and improve the educational experience.
Training in soft skills
Your staff members can receive training in teamwork, sales, HR, and customer service through a well-designed soft skills programme. An effective monitoring system for identifying learners' strengths and weaknesses is made possible by assessment reports that use statistical and analytical methods.
The sales managers may quickly monitor the performance of team members or those to whom they have assigned a particular online course. In order to gauge learners' proficiency on particular subjects, the LMS analyses progress metrics based on each learner's KPI scores and then automatically provides a performance assessment report.
Additionally, the LMS sends automated messages and reminders to employees' personal mobile devices to show their performance status after finishing a particular session.
Conclusion
Any business's workforce is one of its most valuable assets. The BFSI sector's workforce issue is especially severe because this industry relies heavily on the talents and perseverance of its staff. The training, up-skilling, and performance evaluation of the employees in the BFSI industry have undergone a standard shift over the past several years.
The way banks operate has changed due to technology. It's not just about the services your company provides to clients; it's also about offering state-of-the-art equipment for productive workplaces. BFSI organisations may adapt quickly to shifting market conditions and new customer needs by switching to a modern workplace learning experience that offers individualised learning and training.