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Last Updated : Jul 11, 2019 05:24 PM IST | Source: Moneycontrol.com

Indian financial services industry to see highest job growth in world: CFA Institute

India is expected to have the highest growth rate in headcount over the next 10 years for core investment professionals—2.9 percent CAGR

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India has the potential to become the world's future investment hub and is expected to be the fastest-growing market for investment professionals over the next decade, according to a CFA Institute report. The report comes in the backdrop of India's unemployment rate witnessing a 45-year high.

India is expected to have the highest growth rate in headcount over the next 10 years for core investment professionals—2.9 percent CAGR, the report says. Core investment professionals are defined as those working in investment industry roles involved with making investment decisions and understanding client needs.

"India—because of the increasing demand for financial services, its strong economic growth, and its number of capable engineers—could become the world’s investment hub," said Vidhu Shekhar, CFA, CIPM, Country Head India, CFA Institute.

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The report gets its validity from recent data by the Association of Mutual Funds in India (AMFI). Mutual Funds’ asset under management (AUM) has been rising steadily, despite volatile market conditions and a recent crisis in fixed income schemes.

From April 2017 to April 2019, the consolidated AUM of mutual funds has risen by 33 percent, from Rs 19.26 lakh crore to Rs 25.27 lakh crore.

However, the future also holds certain challenges for the industry and it is likely to see formative changes, according to the report. Adaptability will be crucial for the workforce and technology will make greater headways.

The report says 77 percent of investment leaders expect the industry’s world of work—overall workplace features, roles and skills, work methods, and compensation and incentives—to change more than it did in the past 10 years.

Similarly, a vast majority, 89 percent of industry leaders, agree that a professional’s roles will be transformed multiple times during their careers, making adaptability crucial for their survival.

Organisations are expected to use technology to enhance the efficiency and save cost, the report says. A glimpse into that can be seen today as more and more financial services providers are adapting Artificial Intelligence and blockchain—two of the hottest emerging technology today. Many banks and asset management houses have provided chatbots to answer common questions of their clients.

However, the report said technological advances will not leave human touch redundant; instead, both will have to work in harmony.

"Significant professional roles at the investment firms of the future will include investment roles, technology roles, and innovation roles. For certain interactions, the combined model—artificial intelligence and human intelligence—adds more value than either component alone because it leverages the benefits of both," the report added.

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First Published on Jul 11, 2019 05:20 pm
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