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In a bid to improve customer relations, particularly in rural areas, Public Sector Banks (PSBs) in India are increasingly turning to apprenticeships. As covered in the Business Standard, these banks are leveraging apprenticeship programs to train young professionals to manage customer relations in underdeveloped and rural regions.

The Importance of Rural Banking

India’s rural areas are home to over 65% of its population, yet they remain underserved in terms of financial services. PSBs have a significant role to play in extending banking services to these regions, but they often face challenges such as a shortage of trained staff and high operational costs. Apprenticeship programs present a solution by providing banks with a cost-effective way to recruit and train young individuals from local communities.

Apprenticeships: Bridging the Skills Gap in Rural Banking

The apprenticeship model works particularly well in rural banking, as it combines classroom training with practical, on-the-job experience. Apprentices are trained not only in banking operations but also in customer service, which is critical in rural areas where customers may not be familiar with banking products and processes. This localized, personalized approach helps build trust and ensures that customers receive the support they need.

Benefits to Both Banks and Apprentices

The benefits of apprenticeship programs extend beyond just addressing the skills gap. For banks, it reduces operational costs and enhances customer relations. Apprentices, on the other hand, gain valuable skills that can help them build a long-term career in the banking sector. Many apprentices eventually transition into full-time roles within the bank, which also helps PSBs reduce attrition rates.

As PSBs continue to expand their services in rural areas, apprenticeships will play an increasingly important role in ensuring that the workforce is equipped with the right skills to meet the unique challenges of rural banking.

The blog is an excerpt from our Vice President and Business Head, Dhriti Prasanna Mahanta’s interview with Business Standard. To read more about how apprenticeships are reshaping rural banking in India, visit the full article on Business Standard