In response to the Reserve Bank of India’s (RBI) unwavering focus on financial sector stability, Indian banks are ramping up their technology capabilities. The surge in tech hiring comes as cybersecurity concerns and the adoption of AI-driven services take center stage in the banking industry.
RBI’s Emphasis on Risk Management
RBI has expressed concerns about the reliability of credit risk models used by regulated entities. To ensure prudence in credit decisions, the central bank now mandates that lenders establish a board-approved policy on model risk management.
This move aims to enhance the efficacy of credit models and promote early detection and resolution of stress in projects.
RBI will closely review the credit models deployed by banks. The goal is to align these models with regulatory principles for managing model risks in credit.
The guidelines emphasize the need for robust validation mechanisms, appropriate governance, and ongoing oversight.
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Tech Hiring Trends in the BFSI Sector
Growing Demand for Tech Professionals: Despite overall tepid hiring, the banking and investment sector is witnessing increased demand for technology professionals.
As these firms significantly boost their IT spending, the focus is on adopting advanced analytics, artificial intelligence, machine learning-driven solutions, and automation technologies.
Niche Areas: The BFSI (banking, financial services, and insurance) sector is particularly keen on hiring in niche areas. Urgency surrounds cloud migration, and cybersecurity expertise is in high demand.
Fresh talent and tech-savvy professionals are at the forefront of recruitment efforts.
Projected Growth: By 2026, BFSI companies are expected to recruit the most among non-tech sectors, with their technology workforce set to jump to 490,000—an impressive 22.5% increase from 400,000 in 2023.
In comparison, overall workforce hiring is estimated to grow by 12%.
Role Breakdown: Insights from staffing firms reveal that software development, product management, and cybersecurity roles are top priorities.
Data science, analytics, and AI/ML engineering positions also see substantial hiring.
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Global Outlook and IT Spending
Globally, IT spending in banking and investment services is projected to grow by 9.7% in 2024. As the industry embraces digital transformation, technology becomes a critical enabler for risk management and operational efficiency.
Kapil Joshi, deputy chief executive at Quess IT staffing said, “The BFSI (banking, financial services and insurance) sector has seen a surge in hiring demand but in niche areas.”
“We have seen an urgency by the clients to move to cloud, and this will go up in coming quarters. Cybersecurity has also seen huge demand,” he added.
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