Understanding the skill talent gap in the banking industry
skills and talent pyramid today is skewed owing to the continuous changes and inclusion of technology in everyday activities. To understand the gap in the industry, we first need to understand the challenges the business faces currently.
The most significant change in banking today is a clear shift of focus from the operational and management of money to new business and wealth creation from new and existing customers. Today, new business and current client relationship management are integral to the business.
From opening new accounts to generating business and growing wealth across managed portfolios.
This underlines the first challenge which is a skewed skills pyramid. While banks have over 100,000 employees, these are mostly focused on operational roles and back-office tasks. To meet business goals today, banks have customer-centric roles and managers with a sales mindset.
The need of the hour is hiring for knowledge and skills that will facilitate business and manager HNI/UHNI portfolios optimizing on gains.
Banking is a highly regulated business in India. Strict structures and processes are put in place by the RBI and DFS. Venturing into new avenues of business becomes a mammoth undertaking, time-consuming, and riddled with challenges.
Compliance being stringent, major decisions even in hiring leadership talent are nominated and recommended by these governing bodies. Limitation of talent in the services rendering and knowledge teams of banks which slows down new products and ideas rollout.
In addition, the awarding of new banking licenses has been halted, preventing new players from entering the business. Limiting the expansion of services and full utilization of digitization in banking and its services.
