Looking to make a career in Banking & Finance? Know what qualifications other than BCom can help you build a career in this sector.
India’s banking sector is witnessing tremendous growth. E-payment wallets and zero-balance accounts are among the innovations that now allow Indian banks to reach a large population of people who were not able to access banking services earlier. Bank lending has increased from US$ 181 Billion in 2014 to US$ 281 Billion in 2017. With 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, the job opportunities in this space are immense. However, the type of job you get as a fresher will depend on your level of education. Contrary to popular opinion, having a BCom is not the only way to get into the banking sector.
At the basic level, a student who has only passed their 12th standard, can hope to get jobs as data entry operators, junior clerks or call centre operators. Depending on their communication skills, the salaries for these roles range from Rs 8,000 to Rs 15,000 per month. However, the growth prospects of these jobs are not much, as higher level roles require college graduates. Additionally, with increased automation happening in banks, many of these jobs may disappear over the next decade as computers will be able to handle the repetitive work required in these roles more efficiently and at a lower cost than human beings.
Banks who want to recruit freshers for higher level jobs are willing to accept freshers from reputed colleges who have graduated in any discipline, whether it is BCom, BA, BSc etc. However, those with a BCom who have learnt accounting basics in their course, have a slight advantage in bank jobs which require a knowledge of finance. Specialised degrees like BBI (Bachelor of Banking & Insurance) and BAF (Bachelor of Accounting & Finance) which give the student more intensive knowledge of finance are highly desired by top banks.
Freshers who want to join a government run bank would also need to pass IBPS PO (Institute of Banking & Personnel Selection Probationary Officer) exam conducted by IBPS. The State Bank of India also conducts its own SBI PO exam. The competition in these exams is fierce with many applicants applying for the limited number of PO positions available at these banks. Some of the nationalised banks include Bank of Baroda, Punjab National Bank and Allahabad Bank.
Private Indian banks like ICICI and HDFC, and multinational banks like Standard Chartered and Citibank do not require this PO exam to be passed, and have their own job hiring process which includes personal interviews, group discussions and written tests. Depending on the bank and capability of the fresher, salaries for entry level roles for graduates could range from Rs 15,000 to Rs 30,000 per month.
There are some differences in the career paths within a nationalised bank and a private bank. Workers in nationalised banks tend to have strong job security with housing and pensions provided. However, job promotions tend to be based more on seniority than talent of the worker. Also, pay scales are lower than those in private banks.
Private banks on the other hand offer privileges like employee development programs, flexible working hours and fast growth for talented executives. However, there is little job security and banks can lay off employees at short notice.
In order to increase the chances of getting a higher paid entry level job in a private banks, many students take additional courses during or after their graduation. These courses could range from short term courses such as Diploma in Banking & Finance to long term programmes like two-year MBA in Finance. There are some additional qualifications in finance that the student could get like becoming Chartered Accountant (CA), Certified Public Accountant (CPA) or Company Secretary (CS), which gives them skills that are in high demand by banks.
The range of jobs available in banks is quite vast. Executives are needed in areas like customer service, customer relationships, loan processing, investment advising, compliance, call centre management etc. The banking sector needs to penetrate the masses so the real opportunity could lie outside the big cities. A regional posting in an emerging market segment could provide invaluable experience and set you apart from your peers. Rise to the challenge and explore your location options as this can give you a competitive edge.
Developing yourself to gain a career in Banking is an investment that will generate generous returns for years to come!!
Also read: 5 Tips for Empowering Student Leaders
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