The banking sector may create up to 20 lakh new jobs in the next 5-10 years, helped by issuance of new licenses and efforts being made by RBI and government to expand financial services to rural areas, experts say.
The hiring trends may get a further boost from the public sector banks, as many of them would need to hire fresh talent in the wake of nearly half of their workforce scheduled to retire in the next few years.
“With the new banking licenses, which are likely to be issued in the first half of 2014, the banking sector is poised to create big career opportunities in the near future,” Randstad India & Sri Lanka CEO Moorthy K Uppaluri said.
Enthused further by the government’s financial inclusion plans to expand banking to rural areas, Uppaluri said: “With only less than 30 per cent of the Indian population having access to bank accounts, top banking firms are looking to expand and venture into the untapped rural markets that have so much potential to boost growth and profitability”.
Reflecting similar views, talent assessment company MeritTrac Services’ CEO Vasu K Saksena said that “hiring in banks is likely to increase in the next couple of years” owing to expansion of banks into new cities and rural locations.
“Along with new banking licenses, the reason can also be attributed to the large numbers of retirements that banks will witness during this year and the next,” Saksena added.
According to Manipal Academy for Banking, about 4 lakh people applied for jobs in public and private sector banks last year.
Of these while public sector banks hired 60,000-70,000 candidates, private sector hired another 40,000 job aspirants.
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The banking industry creates about 50,000 jobs in India each year and with the economic environment conducive for opening of newer banks and old banks adding in more number of branches this number is set to cross the 15 Lacs mark in the next 5 – 10 years. With IDFC Ltd & Bandhan Financial Services getting the preliminary go-ahead on their banking license application and about 20 more applications still in fray, certainly the Indian Banking Industry is looking to open up once again. The Industry which saw no new banks being added post Yes Bank in 2004 is set to generate newer avenues for both employment & newness in services.
Newer bank licenses are not the only one’s which would be generating employment, the existing banks especially the existing private sector banks are also looking to expand and penetrateinto rural areas in the years to come. The other set of recruiters would include the PSU’s which would also have a large chunk of their aged workforce retiring during this period. This trend is quite evident with Bank PO examination now trying to look for good candidates in the mid and lower level management levels.
With academic institutions launching banking courses in a flurry and tempting aspiring students to join them. To ensure this happens banks also need to start looking out for partners who can help their new employees develop this skill set and get them day 1 ready employee, which reduces pressure on the business cycle. As banks will now just cannot hire graduates and post graduates and expect them to learn on the job. For banks their task is cut out and for the aspirants they need to start choosing wisely on the correct course to reach their dream job.
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The prospect of a career which the profession of banking has to offer has been frequently discussed from various points of view, and the changed conditions following on the war have brought home the far-reaching importance of the subject, not only to those directly affected, but to the business community as a whole. Mr F. E. Steele dealt with the subject in a most interesting manner some months ago, in the monthly review of one of the lending joint stock banks, and although it is pleasing to note that he sees in the changed conditions a more favorable ﬁeld for the aspiring bank clerk, it is evident that there is still a wide scope for improvement.
This principle of standardizing is carried even to the higher posts. Managers, for instance, being as a rule selected from the most conventionally correct type, such social qualities as suavity of manner and address are more in demand than originality and vigorous business ability, the main object being to placate the board of directors. Such training and selection would cause no surprise to those critics of our banks who used to contend that their policy was to encourage the attraction of deposits with the object of investing them in London. No doubt these critics sometimes overstated their case, but it has been remarked by merchants on more than one occasion that if the pained expression of the ordinary bank manager when a business proposition was put before him for consideration might be taken as an index of the general attitude of our great banks, it did not augur well for the assistance and encouragement the British trader might hope to receive at their hands.
Looking to the future, we do ﬁnd some hope in the advent of the joint stock banks into the foreign field, the expansion of the private banking houses in this same direction, and more especially in the new oversea institutions that have recently been formed. Whether these hopes are justified will depend very greatly on how the present leaders in the banking world meet the demands of new conditions. They are at parting of the ways, and if this venture into international banking is to be successful, they will have to broaden their vision and discard much of the worn-out tradition which has shackled their minds.
Our banks now want alert and intelligent men for the world-wide expansion that is open before them, if they use their present opportunity; they can get them in plenty if they make the right use of the material under their hands.
Slammed by declining revenue, the trading businesses inside the biggest global investment banks are expected to suffer job losses that could run into the thousands by the end of the year, according to people at the firms and recruiters who specialize in financial-services positions.
The culprit: a persistent gap between revenue and employment. For the 10 largest global investment banks, trading revenue for fixed-income, currencies and commodities, or FICC, units in the first quarter plunged 15.7% from the same period a year earlier, according to data from research consultancy Coalition. The number of FICC traders, researchers and salespeople, meanwhile, fell just 4.8% over that period.
But bankers increasingly worry that the downturn in trading that started last year is part of a broader sea change. Tough new rules on risk and capital, along with a sharp slowdown in market volatility, have made trading less profitable for big banks in the past few years, and banks are coming to grips with the possibility that conditions will remain weak long into the future.
Barclays PLC this week laid off several hundred people in its investment bank, mostly in its FICC unit, under a plan announced last month to cull 7,000 staff over the next three years and retrench from certain businesses.
Royal Bank of Scotland Group PLC plans to eliminate hundreds of jobs in its U.S. trading businesses over the next few months as it prepares to comply with new regulations, The Wall Street Journal reported last week. The cuts, which will be carried out over the next 18 months, could total as many as 400 and will be concentrated in the asset-backed securities business.
Traders are trying to find places to land even before they get laid off. Mr. Stein of Caldwell Partners says he has received between 17% and 19% more calls in the past month than in the same month a year earlier from managing directors inquiring about job opportunities. Managing directors inhabit the top rung of the Wall Street career ladder.
“AN INVESTMENT banker was a breed apart, a member of a master race of deal makers. He possessed vast, almost unimaginable talent and ambition.” So wrote Michael Lewis in his 1989 book, “Liar’s Poker”. Mr Lewis charted the ascent into investment banking of the most talented graduates in the 1980s, a situation that still held true as the financial crisis struck in 2007. Then, 44% of Harvard’s MBAs landed a job in finance; 12% became investment bankers. Yet in the class of 2013, only 27% chose finance and a meagre 5% became members of Mr Lewis’s master race.
The trend is the same at other elite business schools. In 2007, 46% of London Business School’s MBA graduates got a job in financial services; in 2013 just 28% did, with investment banking taking a lower share even of that diminished figure. At the University of Chicago’s Booth School of Business, the percentage of students going for jobs in investment banking has fallen from 30% in 2007 to 16% this year.
Since the crisis, investment banks have culled the recruitment schemes through which they once hired swathes of associates straight from business schools. Instead, they rely more on recruiting the brightest undergraduates, in the belief that it is more productive—and better value—to develop cohorts of junior analysts in-house, rather than those with fixed ideas honed on expensive MBA programmes.
A few banks are trying to change their culture, taking a tougher line on sexual harassment of female staff and advocating a healthier work-life balance, perhaps even allowing the odd work-free Saturday. For the business schools’ brightest and best, though, all these may not be enough.
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As Banking sector opens up with aim of rural expansions and financial inclusion as their policy mandate, financial sector jobs are gaining popularity even as banking institutions come up with large vacancies in an effort to enhance productivity of their existing operations and scale up in future.
For example, the largest public sector bank State Bank of India (SBI) has announced 7,000 vacancies for the position of Probationary Officers (SBI PO 2014) and Clerical cadre (SBI Clerk 2014) this year.
What is the career scope of Banking jobs? How should candidates evaluate their suitability for a job in Banking jobs? What is the level of competition? How should one prepare self for the challenges in the sector?
Careers360 brings you an in-depth insight into the scope of Banking sector jobs, broadness of opportunities in the sector, one’s suitability for such jobs and the level of competition in this interview with Anil Nagar, director of Career Power Institute in Delhi. An Electronics Engineer from IIT BHU, Nagar has over 10 years of hand-on experience in education industry and training banking job aspirants.
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This crisis-of-confidence in banking as a career could not come at a worse time. Within the next decade, thousands of baby-boomer bankers will retire. It is imperative that we be able to excite, recruit and develop the next generation of bankers.
For those of us who made our careers in the field, it is arguably our duty to prepare the next generation.
But why would a young person entering the business world today choose banking as a career?
The logic for pursuing a career in banking today is largely the same as it has been for generations. The reasons are directly tied to banks’ impact on the overall economy and the communities in which they operate. This was clearly articulated in a study released this year by the California Bankers Association and Beacon Economics entitled The Economic Impact of Banks: Measuring the Impact in California.
Bankers provide funding for society’s infrastructure: For the houses in which we live, the businesses where we work and even the landmarks that are our national treasures. While working in San Francisco for Bank of America, I would gaze out at the Golden Gate Bridge and marvel that during the Depression A.P. Giannini, founder of Bank of America, had stepped in to provide funding for that now-historic bridge’s construction when no one else would.
A banker’s involvement in, and support of the community, can be a lifeline in many ways. I once toured a lower-income development in east Dallas being revitalized with funds provided by the local regional bank. Children were playing in a park that a few months before had been in severe disrepair and certainly unsafe. During a 2008 wildfire in Montecito, Calif., the local community bank, Santa Barbara Bank and Trust, stepped in to offer temporary shelter to customers and non customers alike who were being evacuated from their homes with nowhere to go.
Many banks encourage employees to be personally involved in their communities, often with paid-time-off programs or additional compensation and recognition for their work done in the community. Short of working for a nonprofit, there are few other fields in which a person can contribute to the community to such a large extent.
Finally, bank employment provides better than average compensation and benefits. While the industry has recently been painted with a very large brush for handing out ridiculously high, undeserved compensation packages to certain executives, those packages are not the norm. A review of U. S. Bureau of Labor Statistics studies, however, does confirm that average annual wages for the banking industry are higher than for private-sector employees and that banking employers provide, on average, higher subsidies for health insurance premiums than other industries and more often provide retirement benefits
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A career in finance isn’t all about money, but it’s close. For the business graduate, obtaining a degree is just the beginning.
What’s left is to take a closer look at available career options, measuring which industry sectors have the greatest need for new professionals. The finance industry is multifaceted, offering a variety of positions catering to a number of different skills and interests. Financial services have multiple sub-industries encompassing niche opportunities. The key to individual success is to research, locate and land the financial job that has the greatest compatibility with your skills and interests. The same is true for professionals seeking a change in scenery and who want to give a new sector a shot.
There are some career paths in the financial service industry that might help you.
First is in corporate finance. Corporate finance jobs involve working for a company in the capacity of finding and managing the capital necessary to run the enterprise. This is done while maximizing corporate value and reducing financial risk. The functions you may implement while in such a position include setting up the company’s overall financial strategy, and Forecasting profits and losses. Next is commercial banking. Commercial banks, from large entities to local institutions, offer a range of financial services, from checking and savings accounts to IRAs and loans. Career options available in this sector include bank tellers, loan officers, operations, marketing and branch managers. Talented professionals can advance from a local branch job to a position in corporate headquarters. Such a promotion would expose you to a number of other areas, such as international finance. And lastly, investment banking. Investment-banking jobs deal with facilitating the issuance of corporate securities and making these securities available for investors to purchase, all while trading securities and providing financial advice to both corporations and wealthy individual investors.
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See this cute little thing? He may look cute and cuddly in this plushie form, but your potential employers may not find him or her so adorable in real life. Meet the germ responsible for unholy smells coming from the pits of your oral orifice – Halitosis.
Halitosis, or bad breath, is a condition, and therefore means it can be treated. It is the third leading cause for people to seek out dentists and doctors, and with good reason. No matter how well you present yourself in an interview, bad breath can break all your hard work and render them moot.
Usually, Halitosis will mean there’s something wrong either with your tongue, the linings of your mouth, your teeth, or even your stomach. This is why it’s recommended to eat yogurt to help regulate the gastric juices, and to frequently brush your teeth and scrub your tongue really well. Go easy on the mouthwash, too, as this may have strong alcohol that dries out your mouth, leaving it more susceptible to bacteria.
Answering interview questions will not always be a straight-forward query about your work habits, your problem-solving skills, or your knowledge about the current exchange rates and the company’s history. The interviewer may also want to test your mettle and see how well you keep your cool and gracefully conduct yourself when placed in a tight spot.
Take this particularly common question, for example: “Tell me about an experience of yours that you consider to be a big failure.”
First off, don’t panic. Your interviewer (upon good faith, of course) is not out to get you, but wants to see how in what kind of light you will paint this particularly embarrassing situation. You can either 1) try to wriggle out of it by giving a “safe” answer where you still look good with minimal effort, or 2) go tell the honest truth, but also focus on how this failure has helped you improve both as a person and as an employee. Your interviewer will well appreciate the effort and risk you took to answer this tough question.