Banking, Financial Services and Insurance is prevailing industry term for companies that comprises.
B - Banking includes Retail Banking, Private, Corporate, Investment, Cards and Non-Banking, Payment Bank etc.
FS - Financial Services include Stock-Broking, Payment gateways, Mutual Funds etc. and I - Insurance comprises both Life Insurance and Non-Life Insurance (General).
FS - Financial Services sector though comprises commercial banks, insurance companies, non-banking financial companies (NBFC), co-operatives, pension funds, mutual funds, stock broking companies and other smaller financial entities. But in BFSI we study Banking & Insurance separately. However, the financial sector in India is predominantly a banking sector with commercial banks accounting for more than 64 per cent of the total assets held by the financial system.
I - Insurance industry is one of biggest employer of countries. It comprises 57 insurance companies of which 24 are in life insurance business and 33 are non-life insurers.
Career opportunities in BFSI
BFSI has always been the biggest employer of nation. It caters wide range of career opportunity for you be it Sales, Operation, Underwriting, Research, Support Role or other Specialist positions or many more you always have wide options and opportunities to choose from. Enhanced spending on infrastructure, increase in working population, growing disposable income, speedy implementation of Govt. projects and continuation of reforms, all these factors further suggests that BFSI will keep raising the demand of manpower at all level.
Banking alone consists of 27 public sector banks, 21 private sector banks, 49 foreign banks, 56 regional rural banks, 1,562 urban cooperative banks and 94,384 rural cooperative banks, in addition to cooperative credit institutions.
As per the RBI, India’s banking sector is sufficiently capitalized and well-regulated. The financial and economic situations in the country are far-far superior to any other country in the world. Indian banking industry has recently witnessed the roll out of innovative banking models like payments and small finance banks.
The digital payments system in India has evolved among 25 countries with India’s Immediate Payment Service (IMPS) being the only system at level 5 in the Faster Payments Innovation Index (FPII).*
RBI’s new measures may go a long way in creating huge fresh job opportunities in banking industry.
The Non-Banking Financial Companies have made strong roots in the Indian financial sector. They have become a fast-emerging segment of the national economic system. The NBFC sector is not homogeneous in nature, rather it has diverse groups of institutions working on it, which are quite different from commercial and co-operative banks. They work in a variety of ways like giving out loans, accepting deposits, leasing and even selling via hire purchase etc.
What makes choosing a career in the NBFC sector attractive is that the industry is growing at a very rapid pace and is being recognized as complementary to the traditional banking setup, so considering it as a career is a prudent choice. In the digital era, the NBFC has heavily invested in technology as its driving force. They have done it in such a manner that gigantic banks have been reduced to just trying to play catch-up. It is a common theme that is shared by a lot of financial institutions that primarily use technology to carve out services to improve the efficiency of financial markets.
Wealth Management career is a pool of services aimed at handling every aspect of the High Net Worth Investors' asset base and helping it to expand. It involves financial advisory services, accounting & tax planning, estate planning, will drafting services as well as other matters that require expert financial advice
The demand in Wealth Management is always very high in market. If you like dealing with HNI / UHNI category of client and feeling confident in high value dealing you should choose this career.
The Non-Banking Financial Companies have made strong roots With steadily growing market in India, it is obvious that those who deal in market shares are going to have rewarding careers with vast opportunities for growth. A career in share market always a very good option. The future of stock market always be bright as this is the only industry which has end reason to attract new clients be it low side of market or it may be higher side or market.
Prospects for the stock broking business are bright and for those who are qualified to handle this business and have the necessary personality traits to cope with it, the job openings are available in very large number. Most of the available jobs in Stock Market are Dealer / Stock Advisors / Sales / Research Analysist etc.
Asset management firms administer the investment money of their clients in order to achieve a financial objective within specific guidelines of the investment pool.
It can be in the form of various financial manuscripts like pension funds, retirement funds, hedge funds or simple mutual funds.
It can be done using various financial vehicles like derivatives, options, futures, equity scrips of securities. Asset managers, depending on the clients’ objectives and risk appetite, would manage the funds and ensure that the financial goals are achieved.
There are lot of job opportunities available in asset management be in Investment Roles or as Sales person.
Investment Banker mostly functions as an intermediary between companies that want to raise money by issuing securities, and individual or institutional investors who are willing to provide money in exchange for securities.
Investment bankers also advise companies on what kind of securities to issue, such as stocks or bonds, and how, when and at what price to issue them. They also handle placement of the securities with investors, a process known as underwriting. In addition to working with private and publicly traded companies, investment bankers also underwrite municipal bonds and other types of debt securities.
Beyond company financing activities, investment bankers also handle a variety of other complex financial transactions. For example, an investment banker may help facilitate a company merger and acquisition (M&A) by providing advice and other related services to parties involved on either side of a potential transaction. They may assist an M&A client with company valuation, strategy formation and deal negotiation. Investment bankers may also be involved in financing the final deal if it requires the issuance of new debt or stock.
Career in Investment Banking
Many investment bankers begin in the industry by participating in internships with investment banks when they are undergraduate students. Although an internship is not required to enter the field, it is an excellent way to get started.
After graduating with a bachelor's degree, it is possible to begin working in the field as an investment banking analyst conducting research and producing analytical reports for more senior staff members. Working as a financial analyst in a wealth management firm, bank, hedge fund or other financial organization is also a good way to begin building experience.
Typically, with several years of experience and a strong record of good performance, an analyst can often move into a junior-level position as an associate investment banker. This position may also be available to a highly-qualified candidate with a master's degree and a strong resume but little investment banking experience. Most new hires are provided substantial on-the-job training that can last as long as two months. Junior investment bankers eventually participate in most aspects of investment banking, including the planning, structuring and execution of large financial transactions. With good performance, junior bankers can move into senior positions overseeing transactions from start to finish.
The insurance industry of India consists of 53 insurance companies of which 24 are in life insurance business and 33 are non-life insurers. Among the life insurers, Life Insurance Corporation (LIC) is the sole public sector company. Apart from that 6 public sector insurers and among the non-life insurers there are 5 standalone health insurance companies. In addition to these, there is sole national re-insurer, namely, General Insurance Corporation of India (GIC Re). Other stakeholders in Indian Insurance market include agents (individual and corporate), brokers, surveyors and third party administrators servicing health insurance claims.
The future looks promising for the life insurance industry with several changes in regulatory framework which will lead to further change in the way the industry conducts its business and engages with its customers. The overall insurance industry is expected to reach US$ 280 billion by 2020. Life insurance industry in the country is expected grow by 12-15 per cent annually for the next three to five years.
Career In Insurance The Indian Insurance market is still in very nascent state and expert says still we have not have properly scratched the potential of market. Insurance caters to a very wide range of career in Sales, Operation, Underwriting, Back Office or Statistics etc. It is one of industry which gives indirect employment to huge population. Before choosing careers in Insurance one should well understand his/her potential and interested related to the field.