To elaborate BFSI is an abbreviation for Banking, Financial Services and Insurance industry. This terminology is commonly used by BPO/KPO/ITES and professional service firms that manage data processing, application testing and software development activities.

This industry provides a wide range of financial products and services. It constitutes of commercial banks, insurance companies, non-banking financial companies, cooperatives, pensions funds, mutual funds etc.

Banking includes core banking, retail, private, corporate, investment, cards etc.
Financial Services includes stock-broking, payment gateways, mutual funds etc.
Insurance covers both life insurance and general insurance

Landscape of BFSI industry is undergoing transition at a rapid pace. There are pressures related to customer retention, profitability and risks involved. With the evolvement of technology financial institutions have been compelled to aggressively implement a range of IT solutions and also ensuring customer satisfaction. With increase in threats this sector is facing disruptions and the stake holders have to redesign and modify the business model and adopt new innovative ways and technologies to handle customer demands.

Customers are becoming increasingly perceptive in all respects. Digitization has increased access to channels like mobile, IVR, browser, and ATM. As a result, financial and non-financial information is distributed through these digital channels and it has become mandatory that access to such information should be available 24x7.

Foundation of Indian banking industry was laid in the 18th century –
• The General Bank of India was started in 1786
• Bank of Hindustan was started in 1770
• India's central banking authority - The Reserve Bank of India, was established in April 1935, but was nationalized on January 1, 1949. During the same year the Banking Regulation Act was enacted which empowered the RBI - to regulate, control and inspect the banks in India.

Challenges being faced by BFSI
• Roll out of banking sector in rural areas.
• Adoption of technology and subsequent upgrade to reduce risk.
• Customer Awareness.
• Inadequate reach of funds/distributors to retail investors.
• Limited innovation in product offering
• Multiple Regulatory Frameworks.

BFSI industry spans to all geographies and segments like lending, asset management,

property, casualty, life & annuities. BFSI includes all services markets such as contact center, finance & accounting, human resources, applications testing and others.

BFSI contributes to 11.1 percent of total IT spend in India which includes virtual debit cards, mobile banking, internet and E-Insurance accounts

BFSI industry spans to all geographies and segments like lending, asset management, property, casualty, life & annuities. BFSI includes all services markets such as contact center, finance & accounting, human resources, applications testing and others.

Achievements of BFSI:
• People can apply for public issues through stock exchange.
• Loans available for home, personal and commercial purpose via internet and mobile banking.
• Access to banking made available via Internet, mobile, and SMS.
• Providing solutions to warehouses.
• Simplifying banking procedures and deploying solutions that convert data into intelligence.

Indian banking industry is growing exponentially since 2010 – Bank credit grew at 15.9 per cent, while total deposits growth was at 14.3 per cent. Considering the potential and growth rate this sector is expected to become the fifth largest by 2020 and third largest by 2025. The Indian banking sector consists of approximately 26 public sector banks, 20 private sector banks and 43 foreign banks along with 61 regional rural banks (RRBs) and more than 90,000 credit cooperatives.

Indian financial market started around the end of the 18th century and comprised of FDIs, alternative investment options, the pension sectors, asset management segment and merging economies. During the second half of 19th century- capital market developed around Mumbai with approximately 250 brokers.

BFSI contributes to 11.1 percent of total IT spend in India which includes virtual debit cards, mobile banking, internet and E-Insurance accounts. BFSI has opened opportunities for fresh graduates who are ready to accept challenging projects. Expansions in BFSI are creating new job opportunities for talented people in different streams.

Considering global expansion and client requirements, the role of BFSI has become more crucial. As per requirements customized products and applications have been developed for customers for achieving their financial goals. Technology has transformed the way BFSI sector used to operate 10 years ago. Now BFSI services are available on multiple platforms - online, mobile, social media.

Competitive world, Strick regulatory guidelines, evolvement in technology and security threat has made life in BFSI very challenging. These challenges have been addressed to a greater extend by outsourcing. Outsourcing has helped in acquisition, increasing profitability and consistent customer services.

BFSI careers are preferred in India –
• This being a large sector – job opportunities are higher in number.
• Due to vast operations – growth is faster and people can change multiple roles and providing quality life, attractive salaries, incentives and rewards.
• In due course after sufficient experience Entrepreneurial opportunities are also available.
• Global presence provides learning and innovation.

BFSI industry is expected to grow at a rate of 15 – 20 percent with Indian insurance sector as the fifth largest in Asia having an annual growth of approximately 30 percent.

Approximately 70 percent of the population is without insurance plans related to health and other things thus providing a greater growth potential for Insurance Industry.

With the evolvement of technology we need to innovate, grow, digitize and secure the BFSI sector to serve our communities both at the country and global level.