BANKING FINANCIAL SERVICES AND INSURANCE

The Banking and Financial Services space has grown significantly over the last two decades. Some statistics would help place this growth in context. Bank deposits have grown from mere Rs 7 lakh crores in the year 2000 to about Rs 122 lakh crores in July 2018. Mutual fund assets under management have witnessed a manifold increase from Rs 1 lakh crores to Rs 25 lakh crores in the same time. Average daily cash trades on the NSE have ­gone up from around Rs 2,000 crores in 2001-02 to over Rs 33,000 crores in August 2018, while market capitalisation of stocks listed on the ex­change have multiplied from around Rs 6 lakh crores to over Rs 157 lakh crores.

GIM experience in BFSI Space

With a legacy of 25+ years GIM has made an impact in the BFSI space, which is evident from the placement figures of its flagship program. The average salary of its graduates placed in the BFSI space is continuously improving. Highest salary offered in the BFSI space witnessed a drastic jump in the last placement season with a package of Rs. 24.37 lakhs per annum. The average salary is increasing along with the increase in proportion of students getting placed in the BFSI space, during the last placement season almost 40% of the graduates joined BFSI space.



The Curriculum Differentiation

At GIM, we emphasise two-fold dimensions to make our offering differentiated from the existing programmes in the space: first, strategic tie-ups with industry partners and longer tenure internships, and secondly focus on the technological underpinnings of the new age of banking.

The Strategic Role of Industry Partners

A key differentiator of this programme at GIM would be the integration of strategic industry partners during the course. These industry partners would provide the students with a pre-agreed format of extended internships, SIP exit guidance interactions, as well as mentoring in a specific domain of the business. This lengthier exposure would make the students job-ready as well as provide the organisations and students detailed opportunities for recruitment and selection. This would also provide the graduates a stronger position in getting more responsible roles and better compensation packages from the employing banks and institutions.

THE BFSI SECTOR

BANKING

The sector has seen many upheavals in the last decade, since the global financial meltdown, and the increasing penetration of the internet and information technology leading to novel, technology-driven products and services.

Technology Trends: AI and Analytics

Artificial Intelligence and Banking Analytics are likely to play a critical role in the future banking domain.

As the sophistication of artificial intelligence increases, relying on better inputs and processing, PwC expects the major trends in future will be Deep learning (mimicking the human brain), better visual processing of information, learning from synthesised data in the absence of historic data, ability to deal with incomplete information, and transparency of the AI, not a black box approach that cannot be explained.

INSURANCE

The insurance industry of India consists of 57 insurance companies of which 24 are in life insurance business and 33 are non-life insurers. Among the life insurers, Life Insurance Corporation (LIC) is the sole public sector company. Apart from that, among the non-life insurers there are six public sector insurers. In addition to these, there is sole national re-insurer, namely, General Insurance Corporation of India (GIC Re). Other stakeholders in Indian Insurance market include agents (individual and corporate), brokers, surveyors and third party administrators servicing health insurance claims. As per the Global Insurance Industry Insights, 2017 by McKinsey Company, worldwide insurance premiums continued to grow at a steady rate of 4.4% similar to that observed in the phase from 2010-2015.

Technology Trends: Autonomous vehicles, IoT, wearables

As per a report on Global Insurance Trends 2018 by Ernst & Young, these are just some of the major changes that insurers will have to manage.

Financial Services

A brief on the non-banking financial services space


The NBFC Sector

As per the RBI, over the last year and a half, the NBFC sector has seen buoyancy in its balance sheet and volume of business activity. NBFCs do a competent job of focusing on sector specific financing eg. retail; consumer and vehicle loans; micro, small and medium enterprises (MSMEs); large industry / infrastructure; and micro finance among others. As per the RBI, NBFC profitability is also under pressure recently.

Mutual Funds

Mutual Funds have also seen impressive growth in the past few years. Assets under management have grown to over Rs 25 lakh crores. Even more reassuring is the fact that the distribution of assets under management is gradually shifting towards more equity, which tends to be long term money with the asset management companies.

Proposed Programme Structure for PGDM-BFSI

Overall Programme Structure

The programme would be a two-year full time one, with six terms / trimesters. The overall structure of the programme is one that is highly involved with our organisational collaborations. We desire that the institute tie-up with about 20 banks and financial companies so that each company can offer internships over the summers and winters to about three students each, thus accounting for the entire batch of 60 students that we would start the programme with.

Academic Trimesters

PGDM – BFSI programme is divided into four parts – foundation course, first year and final year with an internship programme embedded in it. The courses that are expected to be covered are as follows:

Pedagogy

  • Emphasis on practical and application-oriented learning supported by theories. This would be enabled by significant proportion of domain courses being conducted by industry executives / practitioners.
  • Case based teaching to enable the understanding on application of theories to practical world.
  • Capital Market Gaming Applications are expected to augment the theoretical knowledge of market operations (essential for this industry).
  • Regular engagement of students with industry experts by way of classroom lectures, seminars and one-on-one mentorship (internships).
  • Proposing an extended internship of 4-5-months to ensure sufficient exposure to corporate requirements and enable them to take more informed decision on their electives.