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The Banking, Financial Services, and Insurance (BFSI) sector in India is rapidly evolving due to technological advancements. With a growth rate of 30-32% year-on-year in 2023, the sector is set to continue this momentum in 2024.

As a pioneer in digitization, the BFSI sector has enhanced customer experience through digital banking and personalized services, improved operational efficiency with automation and blockchain, and promoted financial inclusion via digital payments and microfinance. These advancements have also strengthened regulatory compliance, spurred fintech innovation, and introduced digital-only banking models. The next wave of adoption focuses on Gen AI, cloud computing, deep tech, and cybersecurity, creating a significant demand for professionals skilled in AI, ML, blockchain, and cybersecurity. Data analytics, cloud computing, and DevOps are also increasingly sought after. A recent NASSCOM-BCG report indicates a 15% growth in AI/ML jobs over the past year, with AI engineer positions increasing by 67% and cybersecurity talent demand growing by 25-30%. This rapid growth has highlighted the Tech Talent Gap, leading to intense competition for skilled talent and resulting in skill shortages.

Despite high attrition rates in the BFSI sector, estimated at around 40%, entry-level positions have surged by 20-25%. The sector is expected to need nearly 1.6 million skilled professionals in the next 2-3 years to sustain its growth. The most effective way to address this Tech Talent Gap is through ‘on-the-job’ training, where individuals with strong foundational concepts gain exposure to real working conditions, the latest technologies, and industry-specific best practices. This immersive learning approach not only enhances theoretical knowledge but also hones practical skills, making trainees valuable assets for future employers.

Speaking to CXOToday, our Chief Business Officer Sumit Kumar said that as pioneers of digitization in the country, the BFSI sector's upcoming wave of adoption will focus on GenAI, cloud computing, deep tech, and cybersecurity. This surge is generating a significant demand for individuals proficient in these areas, underlining the crucial importance of targeted skill enhancement.

He also underscored the significance of structured on-the-job training through apprenticeships to meet this demand. These initiatives furnish industry-relevant skills that markedly enhance employability. Furthermore, degree apprenticeship programs, which blend academic learning with practical experience, are essential in today's swiftly evolving tech landscape, equipping individuals with both theoretical understanding and hands-on proficiency. 

The blog is an excerpt from Sumit’s interview with CXOToday on the tech talent gap in the Indian banking industry, the future skills for the BFSI sector, skill development through apprenticeships and more.

Our Apprenticeship Programs have empowered BFSI organizations to bridge the skills gap and build a future-ready workforce. Want to learn how? Let’s discuss!

For detailed insights from Sumit, please read the full article in CXOToday