MAKING MONEY WORK FOR YOU
Five reasons to pursue a career in banking and finance
What should an aspirant consider and evaluate before deciding on a sector to work in? In my experience, there are five key questions to consider—is the sector poised for growth? Are there sufficient number of organisations to work in? What is the hiring outlook? Are there options to gain experience in diverse roles over a long career? And would I, as a professional, have the opportunity to make an impact? If one were to do a detailed analysis of various industries based on these factors, the financial services industry would score extremely high.
SECTOR’S GROWTH PROSPECTS
With a GDP of $2.6 trillion, India is world’s sixth largest economy as per International Monetary Fund’s (IMF) World Economic Outlook - April 2018. Various reports, including those by the IMF, suggest that at growth rates of 7 to 7.5 per cent, India is the fastest growing economy in the world. Historically, the financial services sector grows at 2.5 to 3 times the economy growth rate, which means that the Indian financial services sector is likely to grow at 20 per cent annually.
LARGE INDUSTRY WITH SUB-SEGMENTS
A large industry with various subsegments offers multiple options to an aspirant. The sub-segments in the Indian financial sector include state and private banks, small finance banks, payment banks, insurance companies, non-banking financial companies (NBFCs) including housing finance, asset management and microfinance companies. And with the advent of fintech players in P2P lending, consumer lending, digital payments and online insurance, the career options in the financial industry are compounding at a rapid scale.
SECTOR WILL CONTINUE TO HIRE
Given the formalisation of the Indian economy, the drive towards financial inclusion and the proliferation of banking and financial services sector in India, the financial services companies have started setting up their branches, in remote corners of the country. This will lead to an increased need to hire more people for customer engagement roles. Data suggests that the sector will hire over four to five lakh people every year for the next five years. The sector offers a variety of roles ranging from financial planners to financial data scientists. These variety of roles will help everyone carve a niche for themselves in the professional world.
OPPORTUNITY TO CONTRIBUTE TO MULTIPLE INDUSTRIES
Finance is in the root of every business. The financial services sector helps other industries and the economy grow by providing them with long-term financing, working capital, treasury, forex and multiple other services required by businesses on a day-to-day basis.
ENTREPRENEURIAL AVENUES
The sector also offers opportunities for those aspiring to become entrepreneurs. Mutual fund distribution, insurance advisors, financial consultants are just some of the available options. Fintech companies providing services such as micro credits, digital payment and lending solutions also provide entrepreneurial opportunities.