EY recently launched the ‘Future of jobs in India: A 2022 perspective’ report, jointly commissioned by FICCI and NASSCOM. It also provides an overview of the job creation rates across various sectors including BFSI and the new jobs that will emerge in the next five years.
In India, the future of jobs in 2022 would be determined by the country’s response to 12 megatrends captured by the EY framework, which includes, under globalization – i) the level of exports of India based companies, ii) rapid adoption of exponential technologies in the advanced markets and its impact on offshoring, iii) increasing/shrinking overseas job market for Indian workforce and iv) level of FDI flows. Under adoption of exponential technologies by Indian companies – i) business innovation, ii) creation of highly optimized supply chains, iii) launch of smart connected products/services, iv) new work arrangements, and v) the demand for resourceful planet and sustainability. Lastly, under demographic changes – i) increasing urbanization, ii) rising middle-class and iii) high proportion of young population including millennials.
Abizer Diwanji, Partner and National Leader, Financial Services, EY India, says: “The BFSI sector has been shifting gears from a technology adoption standpoint and is witnessing an increasing advent of robotic process automation (RPA) /chatbots to increase efficiency and productivity in the day-to-day processes. These technologies are taking over not only rule-based jobs but also jobs that require knowledge-based activities. Therefore, the impact on jobs in terms of skill-sets is expected to be signicant in this sector. There is an urgent need for the industry to initiate skilling and reskilling programs and formulate vision for Industry 4.0.”
Key highlights from the report with respect to BFSI in India:
- 20-25% of the existing jobs will face existential threat
- 68% of the respondents surveyed said that supply chain optimization through exponential technologies such as chatbots and blockchain is transforming the Indian BFSI sector. Indian banks are looking to bring in robotics into their branches as digital assistants to interact with and assist customers in day-to-day activities.
- Robotics/automation (84%) and social and mobile technologies (79%) are the top technologic trends that the industry is adopting
- New jobs roles in BFSI sector would include cyber security specialist, credit analyst, robot programmer, blockchain architect and process modeler expert
- Some of the threatened jobs in the BFSI sector are data entry operator, data verication personnel, teller, cashier and underwriter
Anurag Malik, Partner - People & Organization, Advisory Services, EY, says: “India has a time window of 2 to 3 years before the effects of disruptive technologies like AI, internet of things, machine learning, and analytics among others begin to have an impact on business and society. The skill gap between the products of the education system and the requirements at the workplace is high. While government is already taking many proactive steps such as Skill India, catalyzing micro entrepreneurship models and encouraging start-ups, it is also the responsibility of the academia and individuals to embrace these new technologies, focus on cognitive/judgement-driven skills and introduce tailored courses.”