BFSI

India has a diversified financial sector which is undergoing rapid expansion, owing to a large spending population. This offers an enormous opportunity to the Banking, Financial Services and Insurance (BFSI) sector to expand itself. The BFSI sector in India is one of the fastest growing in the country. The sector comprises of companies that provide a wide range of products or services and includes commercial banks, insurance companies, non-banking financial companies, cooperatives, pension funds, mutual funds and other smaller financial entities. Banking services may include core banking, private, corporate, investments etc, while financial services include mutual funds, stock broking, payments gateways etc. The Indian economy has experienced a relatively high growth trajectory in the last few years, with the surge positively impacting this sector. By introducing new products innovative strategies, leveraging technology and improving distribution networks, BFSI companies have been able to expand and grow. Also, increased awareness in consumers about investment opportunities and a conducive regulatory environment has also played a major part in expanding the potential of this sector. The growth of the sector has lead to an increase in manpower requirements. Estimates put these requirements to around 8.5 million by 2022.
This sector is further categorized into sub-sectors such as Banking, Financial Services and Insurance.
The insurance sub-sector is the driving force behind the infrastructure sector. Over the last few years, this sub-sector has slowly but steadily increased its contribution to the country’s GDP.
The financial services sub-sector is one of India's largest segments. It generates a lot of employment as well as revenue and includes non-banking financial services, capital markets, various kinds of funds and cooperatives.
Lastly, the Banking sub-sector. The Indian banking system comprises many nationalized banks, regional rural banks, and urban co-operative banks.
The banking sector has a tremendous impact on the economy. This sub-sector has a high growth potential due to the country's fast-paced development.