The Diverse Roles in Banking and Financial Services

Working in the banking and financial services industry can be both challenging and fulfilling. This sector is vast and varied, encompassing numerous roles and responsibilities that significantly influence the daily operations and success of financial institutions.

As a credit examiner, my role was to forecast whether a bank loan would be repaid in line with the agreed terms. However, this is just one of the many specialized jobs within this industry. The spectrum of roles within banking and financial services is broad and diverse, and can include:

Insurance Financial advisors Banks Capital markets Treasury Foreign exchange Corporate banking Retail banking Services and payments processing Compliance

Each of these sectors has its own unique set of responsibilities and challenges. For instance, a financial advisor might focus on providing investment services to clients, while a bank might handle capital markets and foreign exchange operations.

Looking at the example of Mr. K V Kamath, former CEO of ICICI Bank, he famously remarked that ICICI is a technology company in the business of banking. This underscores the increasing importance of technology in the financial services sector. Financial institutions like banks allocate a substantial portion of their budget towards information technology (IT), with only human resources costing more.

The Importance of People and Technology in BFSI

People and technology are the two most crucial components in a financial services entity (BFSI). With the growing impact of digitalization through social media and net banking, the potential for growth in this sector is immense. As more financial transactions are moving online, the demand for robust IT infrastructure and skilled personnel is on the rise.

Most of the software used in BFSI is procured from external vendors, but significant customization is often carried out by the banks. This indicates the importance of in-house technical expertise and flexibility in adapting to unique business needs. Additionally, hardware services and maintenance activities are often outsourced, but the IT department typically handles requirements gathering, vendor management, and project management.

The Predominant Role of the Bank IT Department

The IT department of a bank or financial services entity plays a vital role in ensuring the smooth operation of IT systems. Their predominant role includes:

Requirements gathering Vendor management Project management Customization

With the transition towards more digitized banking and financial services, the IT department becomes even more critical. As financial institutions strive to provide seamless online experiences for their customers, the IT department must be agile and responsive to changing technological landscapes and customer demands.

Conclusion

The banking and financial services industry is a dynamic and expanding sector, with numerous roles and responsibilities that are essential for its success. From traditional credit examinations to digital banking and beyond, the industry continues to evolve, driven by the need for technological innovation and customer satisfaction.