The Banking, Financial Services, and Insurance (BFSI) industry are undergoing a speedy transformation. The advent of technology has opened the floodgates for large-scale changes in how this industry had traditionally operated. From services to processes and extending to security, BFSI companies are welcoming technology to stay abreast of the latest innovations in the financial world.

Latest trends

FinTech companies continue to rise into prominence within the BFSI industry. They are increasingly becoming aligned with payment banks, eliminating intermediaries, and encouraging financial inclusion massively. Payment banks seem to have the support of the Reserve Bank of India as well, given its contribution in eliminating the cash domination in the Indian economy. Technologies like Machine Learning and Cognitive Analytics are fueling the innovation in the BFSI industry, while blockchain is emerging as the disruptive change every industry witnesses once in a generation. Robotics is overhauling business processes across industries with process automation, and BFSI companies are no strangers to it. These companies handle large amounts of public money. With digitisation, the need to spruce up security has also risen significantly. This is seen in the efforts and investments put in the cybersecurity of digitised banks, FinTech companies, and other financial institutions.

Riding digital wave

The Reserve Bank of India's annual report 2020 underlines its importance to information technology and allied services in the various financial services. Its annual report agreed that the 'rapid growth of innovative IT solutions' changes the way businesses are done. RBI uses state-of-the-art information and communication technology in its everyday operations. The nod of the country's apex bank itself signifies the importance of technology in the BFSI industry. This is reflected in branchless banking initiatives (SBI Digi Bank) of traditional powerhouses like the SBI. The industry's employment opportunities accordingly mould as per the emerging trends of the BFSI industry, as with any industry for that matter.

Need for engineering talent

The career roadmap for engineering students continues to rise within the BFSI industry. A BFSI Conclave in 2020 highlighted that globally over 25,000 banks invest a whopping $600 billion in technology-driven innovation each year. This helps their cause of achieving faster digital transformation and making a secure environment for BFSI companies and customers. Such volumes of investments eventually translate into a lot of new opportunities and jobs, in this case for IT experts and engineers.

Within the BFSI segment, FinTech companies rely on simple and premium service quality and a high-security level. The introduction of intuitive technologies like personalised and experience and AI-driven features are acting as clarion calls for fresh IT engineers. The need for scripting the perfect program is more than ever, not just for FinTech but also for most other BFSI companies. Consequently, the need for computer engineering experts as developers and coders and UI/UX professionals is on the rise. BFSI cybersecurity experts are also sought after for the niche expertise they provide.

It is not just the digitally-native FinTechs that are driving the surge of technology within BFSI. Traditional banks and insurance companies are investing in digitising every aspect of the customer lifecycle. These companies are relying on customer engagement models that are designed from a mobile-first perspective. This again points towards new opportunities for budding app designers, developers, and coders.

Why engineering is important

Although traditionally considered the happy hunting ground for commerce students, the new-look BFSI industry is opening up more and more doors for science and engineering students. Academically they are better prepared to understand the technology behind the new BFSI features and innovations. They are well-versed with the hardware and software features of present-day computer systems. Whether it is about inserting a new feature in the ATM interface or deploying a more secure payment method, engineering graduates are more familiar with the technicalities. Besides, they have the mathematical and analytical bent of mind that makes them an easier choice for BFSI employers.

Skilling Up

We have to understand that BFSI is a competitive sector with a lot of emerging players. The efficient use of big data is crucial for these players to gain a foothold and retain their space. Engineering students who have a talent in analytics can step into the data science and business analysis-driven roles these organisations will require.

Engineers planning to gain blockchain expertise can be crucial in the event of industry-wide adoption of the technology. The blockchain infrastructure fosters the maintenance of a highly decentralized customer database that is transparently managed and maintained. Yes, the Bank admitted to the use of Blockchain and cognitive capabilities in payment process innovations. Engineers equipped with good blockchain expertise can devise effective online encryptions to mitigate the risks further.

One must note that the National Skills Development Corporation predicts the BFSI sector to generate 1.6 million new jobs in India. As mentioned earlier, artificial intelligence tools like Machine Learning and Cognitive Analytics are taking BFSI to the next digital level. ICICI, for instance, is using AI to apply robotics in over 200 of its business processes. Humanised FinTech, as it is called, is about giving a more personalized experience in banking and finance. A simple example of humanized experience is the deployment of superior chatbots to improve customer service, something the engineers can surely help them achieve.

Human experience in a digital environment is the next big challenge for the BFSI industry. And at a broader level, the maintenance of watertight security should come with the convenience in use, and smarter access management is the utopia of the BFSI universe. All of which involves the skill and expertise of an IT-enriched engineer.

To Sum Up

While opportunity seems to be abundant, the engineers on their part have to scale up their learning and skill. Specialised courses in technical architecture, data science, DevOps, agile development practices, can enhance engineers' job prospects within the BFSI market. The foundation of expertise in any field is built upon years of experience. But when provided by the experts in the field of technical education, knowledge itself can emanate expertise. While learning on the job is not completely replaceable, impeccable academic institutes can successfully simulate real-life projects and industry case studies to understand better. This holds even while acquiring the expertise required in the BFSI industry.

The author is Chief Business Officer of Manipal Global Academy of BFSI