Faceless Banking: Understanding Talent Shifts to Build a Resilient BFSI Workforce

In the rapidly evolving landscape of the BFSI sector, the advent of Faceless Banking is steering the industry towards a future that is both transformational and dynamic. The digitalization wave, coupled with technological advancements, has positioned the BFSI sector as a trailblazer in adopting new technologies.

As we delve into the talent shifts necessary to build a resilient workforce for the BFSI sector, we’ll also share key trends and insights from Taggd’s India Decoding Jobs Report 2024; one of the leading recruitment reports in India trusted by HR policymakers for strategic decision-making.

As a service-led industry, it is imperative for BFSI organizations to maintain high customer satisfaction levels while constantly enhancing their products to ensure business growth. 

Research during the India Decoding Jobs Report 2024 highlighted that the banking sector has witnessed a monumental shift in terms of digitalization, with 100% of new bank account openings in rural India conducted digitally.

Given the rapidly increasing preference of customers to engage digitally, BFSI companies are proactively integrating advanced technologies to strengthen back-end bank processes and provide their customers with a feature-rich and wholesome digital experience.

In this context, the demand for talent with skill sets in digital services, artificial intelligence (AI), and machine learning is set to witness a sharp rise as the BFSI sector moves towards Faceless Banking. 

Faceless, not Humanless

India’s BFSI sector exhibited thriving growth in recruitment in 2023, surpassing pre-pandemic levels. Indian banks experienced a remarkable surge in hiring during the financial year 2023 (FY23), reaching the highest numbers in a decade.

According to data from the Reserve Bank of India, the collective efforts of both public and private sector banks resulted in the addition of 123,000 employees in FY23, surpassing the previous record of 125,000 in FY11. This upward trend is anticipated to persist in FY24. Notably, the top 15 private banks collectively hired 350 employees each working day in FY23. The aggressive recruitment is attributed to the strategic expansion of banks into tier 3 and rural areas.

Addressing fellow recruiters in Taggd’s #IndiaDecodingJobs Think Tank 2024, Mr. Abhik Sinha, SVP & Head Business HR-Equitas Bank stated, “The BFSI sector is signaling a transition towards faceless banking in the upcoming years. Despite challenges, such as a constrained pool of industry-specific talent and heightened attrition rates, the industry is on a positive growth trajectory, as evidenced by the quantitative data on hiring.”

“The Talent success profile is constantly changing and so are the hiring norms. The talent pool has to be highly agile and skilled to adopt the new norms efficiently,” says Mr.Indranil Choudhury, Group Head-HR of UTI, addressing the need for a shift in the talent profile.

With increasing emphasis on digital-first experiences, the need for digital transformation experts is set to rise manifold in 2024. These experts need not necessarily have a background in the banking domain but have strong knowledge of data analytics and data science. 

Further, there will be an increased demand for professionals with new-age skills in curating back-end as well as front-end digital experiences. This includes Artificial Intelligence, Open Banking, Blockchain, Cybersecurity, Neobanking, Hyper-Personalized Banking, Quantum Computing, Automation, Machine Learning, and UI/UX design. 

With a focus on tech, there is also set to be a visible shift in the composition of the workforce in terms of work experience. According to the Decoding Jobs Report 2024, the demand for young, tech-savvy professionals is set to increase from 30% to 40% in 2024 with a simultaneous decrease in the demand for mid-level professionals. However, the demand for senior-level professionals (with over 15 years of experience) remains consistent.

However, the demand-supply gap of such talent is evidently wide, with a median hiring time of over 60 days to hire middle-management BFSI employees. To prepare a BFSI workforce ready for the future, a fundamental shift in the recruitment process will be required. 

Based on insights from the Decoding Jobs Report 2024, here are a few measures that BFSI companies can adopt to build a future-ready and skilled workforce:

Prioritize Digital Literacy: Place a strong emphasis on recruiting candidates with a high level of digital literacy and a keen understanding of emerging technologies relevant to the BFSI sector.

Invest in Upskilling: Encourage and invest in ongoing training programs to upskill existing employees and align their competencies with the evolving technological landscape.

Adapt Recruitment Strategies to Meet Changing Preferences: Adapt recruitment strategies to identify, attract, and retain talent that aligns with the industry’s shifting demands for faceless banking. This includes proactively modifying compensation and offering ample flexibility to meet the changing profile of the workforce.

Nurture Soft Skills: While technical skills are crucial, nurture soft skills such as adaptability, resilience, and effective communication, recognizing their significance in a swiftly transforming environment.

Amidst the transformations in the BFSI sector, staying attuned to the emerging trends is key to maintaining workforce relevance. The India Decoding Jobs Report 2024 not only reflects on the developments of 2023 but also readies you with data-backed trends to make effective hiring decisions in 2024. 

Published with precision through surveys and roundtable discussions involving highly experienced talent acquisition leaders, the India Decoding Jobs Report 2024 is a comprehensive analysis spanning multiple industries, including BFSI, automotive, IT, manufacturing, and more. 

To download your exclusive copy of the report, click here or write to us at contact@taggd.in!