The financial services industry is a highly volatile sector, which immediately gets affected by various reasons: be it technology, government regulations, fiscal and monetary policies, trade relations, tax changes, etc. This year has witnessed major changes in the financial services, thanks to technology again, we explore which are the top trends that rocked the financial service industry over the past 5 years.
Let’s explore in this article, what are the top trends in the financial services industry and what career opportunities for finance professionals will these changes bring along with them.
1. The Boom of Big Data
Big Data has almost made the pandemonium break loose in the field of data science. Data science, business intelligence, and business analytics have penetrated in almost all areas. This has played a pivotal role in redefining the way data is used. The management of finance industry is looking out for professionals who are well equipped with the knowledge of business analytics. Rather, it is a golden period for Business Analytics professionals, who will witness a sudden increase in their demand. With the ease in the collection of data of consumers and their transactions in addition to the development of techniques to use this information to build potential clients, the financial services industry is certainly up for a big change.
This sea wave of change is sure to bring a huge demand for business analytics professionals.
2. Startups In India
Not to mention in India has witnessed a growth in the start-up industry deals by leaps and bounds. The recent government also announced financial assistance for start-ups. You’ll see many ideas lined up for investors and the financial services industry has much to do in this case.
With rising startups who need investments, there is a need for finance modeling professionals who will prepare financial models to represent the financial viability of the projects.
Most Indian companies, considering the increasing costs of setting up head offices in top cities such as Mumbai, Delhi, Bangalore, etc., have decided to outsource their KPO activities to Tier II and Tier III cities such as Pune, Jaipur, etc. Overcrowding of resources in Tier I cities has induced the companies to set up centers in other cities, thereby increasing the employment opportunities in these areas.
This proves there are increasing employment opportunities for finance professionals in Tier II and Tier III cities.
The menace of NPAs (Non-Performing Assets) has given birth to responsible debt payment since the attitude of MNCs is slowly changing these days. Companies no longer keep the attitude of looking at debts as a primary source of funds or engage in siphoning of funds. This can serve as a big booster to honest entrepreneurs and discourage defaults in payments.
In fact, as per latest news, almost four banks are planning to sell the assets of Kingfisher Airlines, the company who came into limelight after being declared as a defaulter of payments. (Source:Economics Times)
Considering the change, there is bound to be increasing demand for credit analysts and project finance experts who will review the credibility and financial viability of the firm.
With the much ado about IFRS, it has finally started making its impact in the financial accounting of Indian companies. While voluntary adoption has already begun, some companies have come under the ambit of compulsory adoption since 1st April 2016. This has necessitated the demand of IFRS professionals who can guide into a successful change in the financial accounting.
6. Payment Banks
Payment banks are redefining traditional banking since it is possible for them to reach out as many rural areas who’ve never availed formal banking services. With more and more payment banks getting licenses from the RBI, this move has become widely popular. the big names in this industry include Paytm, Vodafone M-Pesa, National Securities Depositary, etc.
Payment Banks will ensure that even rural areas are availing facilities of formal banking services, which in turn, will ensure that there is an increase in demand of support and finance professionals.
The Indian economy is making its mark on the global map. That is the reason many MNCs are opening up their units in India or outsourcing their activities to India. The Internet has already created a revolution and the financial service industry is making its mark.