Challenges vs opportunities in the BSFI industry

Address, rethink and innovate your talent strategy: Rising above the pressures to sustain the growth and success of your organization.

How is your BFSI organization future-proofing its talent strategies? This question prompts me to reconsider how industry leaders are navigating the complex landscape of talent acquisition and management while facing today’s fast-paced digital transformations.

Based on our study in partnership with the leading research firm, Everest Group, this blog sheds light on the challenges disrupting the workforce and the opportunities arising within the banking, financial services, and insurance (BFSI) sectors.

Read on to learn about key insights and actionable strategies to help your organization adapt and excel in the evolving talent landscape.

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The talent landscape of BFSI Industries: Key insights

A dynamic yet challenging industry, the digital transformation in the BFSI market has created new roles and even more challenges. In our experience the scarcity of talent as a significant growth barrier, hindering the industry’s progress.

Despite the availability of job openings, there is an insufficient number of skilled professionals equipped with the necessary knowledge or relevant technological skills to fill the new roles in response to the increase in digital demand. We see enterprises feeling the pressure head-on as the following market drivers emerge.

• Technological advancements: IT software and AI technologies, like AI-powered chatbots, algorithms, and machine learning tools, have revolutionized customer experience. They transform traditional physical banking interactions into seamless, personalized, and convenient processes.
• Changing consumer expectations: Customers want the best of both worlds at their convenience. When complex or unique digital banking issues arise, they expect live support from a representative. 
• Regulatory initiatives: Regulators are heavily focusing on consumer protection and urging banks to thoroughly examine the use and potential negative effects of their technologies, new products, and services. This includes assessing risks related to third-party risk management programs, fintech partnerships, and emerging technologies like artificial intelligence (AI).
• Emergence of innovative FinTech solutions: Bringing mobile payments, blockchain, and more into the BFSI spotlight, fintech technologies are not only enhancing existing banking services but also creating new expectations for the industry. These technologies are crafting efficient, customer-centric, and scalable models.

As the market evolves, the traditional talent pool no longer meets the new requirements. To bridge this significant skill gap, it’s crucial for BFSI enterprises and organizations to reimagine their talent strategies and candidate experience. Investing in the continuous learning and development of existing talent is essential to stay competitive. 

For a deep dive into each insight, download our BFSI report and reach out to our expert for an extra hand.

Emerging challenges relevant to skills and competition

Creating a snowball effect in an already demanding market, the BFSI’s digitalized landscape is creating additional talent-related challenges.

• Digital transformation and technological skills gap: The demand for digital expertise is transforming traditional accounting and management roles into new roles requiring digital proficiency. Organizations now value technological skills at 21% over management skills at 10% for core skill requirements.
• Talent retention: Tensions are high as organizations struggle to retain skilled professionals. High attrition rates cause constant operational disruption as they compete with sectors like FinTech, neobanks, and crypto providers.
• Diversity, Equity, and Inclusion (DE&I): Prevailing biases and aging demographics make it challenging for organizations to diversify and cultivate an inclusive workforce. It’s no surprise that 52% of organizations believe external help can improve their DE&I outcomes.

Opportunities in the BFSI Industry: Talent landscapes

Although the talent-related challenges organizations face is significant, they are not insurmountable. This is an opportunity for HR, CEOs, and senior leadership in the BFSI industry to tackle their pain points head-on and proactively reassess how their financial services are assessed, managed, and delivered in the evolving digital landscape. 

By strategically addressing challenges like bridging the technological skill gap, retaining skilled professionals, and diversifying and cultivating an inclusive workforce, organizations can improve and future-proof their talent strategy by implementing the following cost-effective and scalable solutions: 

• Develop training programs that build expertise in high-demand areas such as technological skills, including AI-based automation and advanced analytics, to upskill and reskill your existing workforce. 
• Combat talent saturation driven by aging demographics in North America, UK&I, and Europe by diversifying your footprint and tapping into emerging regions such as Asia Pacific to meet new talent needs and provide a superior employee experience as Gen Z workers enter the workforce.
• Implement an agile and fluid workforce that manages the complexities of a diverse workforce, including full-time and part-time employees, contractors, and consultants, through Total Time Management services for your banks and financial organizations.
• Partner with providers to build a talent strategy that acquires different types of workers and comprehensively manages and retains existing talent. Adopting Managed Service Providers (MSPs) and Recruitment Process Outsourcing (RPO) services can be advantageous.
• Embrace and leverage technologies such as talent analytics, skill assessments, and predictive hiring tools to predict candidate success, improve the efficiency of your recruitment process, and enhance the candidate experience.
• Invest in continuous learning and development to upskill and reskill your existing workforce.

Our experts are here to help! Reach out to us for more information on implementing these actionable insights and services.

6-Step Approach for BFSI Organizations to Future-Proof Their Talent Strategies

Follow these steps to effectively navigate the complexities of the BFSI industry and future-proof your talent strategy and thrive, achieving your organization's strategic goals.

As new expectations are set for today’s banking professionals, the standard is being reimagined, creating pressure for enterprises to invest in re-skilling and upskilling their existing talent to bridge the knowledge gap . To overcome this challenge, our study with Everest Group highlights that the BFSI industry is emerging as a major adopter of MSPs and RPO services. These services fulfill the need for cost-effective, scalable, and specialized solutions that not only capture talent but also navigate the dynamic, regulated nature of the sector.

Take the next step towards future-proofing your talent strategy. Download our comprehensive BFSI report today and reach out to our experts for personalized guidance and support. Together, we can help your organization thrive in the evolving BFSI landscape.

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