Banking & Financial Services
What is Banking ?
Remember the days when you had to run to your bank, stand in long queues, fill up tedious forms just to make a simple request for a cheque book? It still happens in some banks but it soon will become history. Welcome to new age banking, where machines are becoming the bulwark of a drive to improvise on processes. Over the past five years, technology has swiftly changed the face of banking in the country. For instance, you can use the phone or internet for these processes. You can now order a chequebook, make a demand draft, transfer funds or even ask for cash to be delivered at your doorstep. Thanks to technology as well as improved services, the average Indian now spends less time at the bank. This is just one aspect of new age banking. There’s online banking, phone banking, mobile banking and the list only grows.
What do I have to do ?
Banks are critical to our economy. The primary function of banks is to put their account holders’ money to use by providing housing, business, educational, personal loans etc.
Banking includes personal banking, credit cards, business accounts, raising finance, business insurance, payments and transfers, investment banking and wealth management. Technology is enabling banks to move into non banking areas like securities trading and demat services, online distribution of mutual fund schemes, insurance advisory services, global transactions services, portfolio management, corporate finance, retirement solutions and planning, credit card merchant services, online shopping, ticketing, bank bonds and more. Insurance broking is one of the worlds’ largest international broking, risk management and employee benefit services. Some of the work is described below :
Securities trading is the buying and selling of the shares and securities by the bank for an individual or the corporate.
Demat, which is an acronym for dematerialization is a process by which the paper certificates of an investor are taken back by the company and actually destroyed and an equivalent number of securities are credited in electronic holdings of that investor.
Merchant banking, stands for providing various services relating to capital market and finance to corporate sector. This includes not only the activities for the above purpose in the country but at times arranging of funds from outside the country. It provides services like project counseling, mutual funds, rehabilitation of sick units etc.
Investment banking gives advice on making investments in various securities.
Portfolio management: These are services provided by merchant bankers to Corporate houses as well as individual clients in managing their financial portfolio i.e. guiding them to raise their resources and managing the repayment thereafter.
Treasury banking – The Treasuries offer full range of foreign exchange products viz spot, forward, swaps, currency options and interest rate derivatives. It also deals with commodity markets, lending rates, bond markets etc.
Cross-functional movements are strongly encouraged to build capability in each employee to become a knowledgeable service provider.
Private / foreign banks provide a tech-savvy, non-hierarchical work environment where early responsibility and independent decision-making enable each employee to reach his/her potential. Coupled with this is a strong performance management system that has built a meritocracy where high performing-high potential individuals are duly rewarded.
If you wish to develop a career as a banker, it is essential to have an analytical mind, skills with numbers as the work involves figures, good organisational skills, communication skills in both speech and writing, interpersonal skills, innovation, team effectiveness and honesty and integrity.
What should I study ?
For entry into Nationalized banks, you should be a graduate. For the major private banks like ICICI, Standard Chartered Bank, Citibank, American Express, HSBC and HDFC, selection is through an interview. Preference is given to candidates who have completed their MBA, Chartered Accountancy, Masters in Finance Control or Chartered Financial Analyst. Most banks conduct their own orientation and training programmes.
Some banks like the ICICI have a selection process which consists of mental ability tests and personality profiling. The mental ability tests assesses your skills in areas of verbal reasoning, numerical reasoning, and diagrammatic reasoning. These are important skills for the role of an entry level manager. You are also required to complete the Occupational Personality Questionnaire before they appear for the interview, the results of which are integrated into process.
Recruitment to the State Bank of India is through the Central Recruitment Board. The entrance test has questions on Maths, Reasoning, English and General Knowledge. Shortlisted candidates are called for group discussion and interview. Other nationalized banks have their own selection procedure. RBI, NABARD, SIDBI, IDBI have a rigorous entrance procedure followed by interviews.
What are the prospects ?
Nationalised banks offer a challenging career as you have numerous opportunities to work for the country and its people. The scope of work ranges from rural development to commercial operations on a global scale. With the change over to computerisation, all branches will be linked on-line, nationally and internationally. Thus the opportunities are tremendous.
There are also other openings for specialised positions such as Agricultural Extension Officer, Law Officer, Cost Accountant, Chartered Accountant, Computer Specialist, Technical Officer etc. The present economic policy of liberalisation has much scope for the expansion of the banking network which will generate more opportunities for employment in this sector.
There is tremendous competition in the private banking sector with the introduction of innovative and customer friendly schemes. Most of the banks have all their branches connected via the computer network. There is a growing need for better banking facilities due to international trade and industrial liberalization which have contributed to the change in the banking environment. All this has created an increase in opportunities in banking jobs and a requirement for people with marketing and technological skills apart from a sound financial background.
As competition increases, a good banker will certainly be in great demand. It must be remembered that a banking job involves working long hours. The future prospects are excellent to move into higher positions within the organization if you perform well as branch managers. Now the dictum is from customer satisfaction, customer delight to customer wow !
Where should I study ?
Indian Institute of Bankers, Mumbai
Address : 191 F, Maker Towers, Cuffe Parade, Mumbai 400005.
Website : firstname.lastname@example.org
Course : Diploma in Banking and Finance(DBF) correspondence, 6 months. You are required to pass 4 papers to qualify in the DBF course. The minimum pass percentage is 50 %.
Eligibility: You should be a graduate from any stream from a recognised university.
Institute for Development and Research in Banking Technology
Address : Castle Hills, Road # 1, Masab Tank, Hyderabad-57.
Website : www.idrbt.ac.in
Course : M.Tech in Information Technology with specialization in Banking Technology and Information Security.
Eligibility: Bachelor’s Degree in Engineering / Technology (B.E / B.Tech); OR M.Sc with B.Sc level Mathematics; OR Master’s degree in Computer Applications (MCA).
The qualifying degree should be from a recognized University/Institute and you should have obtained a First Class with 60% marks.
GATE qualification is essential for Direct Candidates.
In case of sponsored candidates, three years relevant experience is required.
Admissions to the course is made on an all-India basis in order of merit in the entrance examination. This four-semester course is aimed at creating a pool of responsible and resourceful IT professionals for the Financial and Banking sector. It is designed to impart in-depth knowledge and expertise to the students through innovative learning, supported by high calibre research and technology leadership.
Banknet India, 57, Juhu Supreme Center, Gulmohar Cross Road No-9, Juhu, Mumbai- 400049 www.banknetindia.com
Banknet India in collaboration with NMIMS conducts a Management Development Programme on Understanding Banking for IT.
The programme attempts to bridge the gaps in domain knowledge of the IT solution providers. The objective of this programme therefore, is to provide banking knowledge from a system perspective, which will help the designers / developers understand the processes and the information flow better.
The Maharashtra Academy of Engineering and Educational Research (MAEER), Pune conducts short courses on banking, in collaboration with the Maharashtra Institute of Technology & Supertech Solutions Ltd. (SSL).
Indira Gandhi National Open University
Address : Maidan Garhi, New Delhi – 110068. www.ignou.ac.in
Course: MBA (Banking & Finance)
Eligibility : You should be a member of the Indian Institute of Bankers and should satisfy the following conditions :
i) You should have passed the CAIIB examinations of the Indian Institute of Bankers, Mumbai and awarded the requisite qualification / credentials by the Institute.
ii) You should have been working in the banking or the financial services sector for a period of at least two years.
iii) You should be a graduate from a recognised University.
National Institute of Bank Management (NIBM), NIBM post office, Kondhwe Khurd, Pune- 411048 . www.nibmindia.org
Courses : Bank Mgmt Programme and Management Education Programme
Department of Adult and Continuing Education and Extension, (University of Bombay) 2nd floor, Vidyarthi Vidyapeeth Bhavan, B Road, Churchgate,Mumbai -400 020
Course : Certificate course in Banking
SNDT Women’s University, 1, Nathibai Thackersay Road, Mumbai 400020 sndt.digitaluniversity.ac/
Course : Diploma in Banking (1 year)
University of Pune, Ganeshkhind, Pune 211007 www.unipune.ac.in/
Course : Diploma in Banking (1 year)
Aligarh Muslim University, Aligarh 202 002 www.amu.ac.in/
Course : Diploma in Bank Administration (1 year)
Utkal University, PO Vani Vihar, Bhubaneshwar 751004. www.utkal-university.org/
Course : Dip in Bank Management (1 year)
University of Rajasthan, Udaipur 302 004
Courses : Dip in Banking Cooperation (1 year) ; Dip. in Banking and Finance (1 year)
M.S. University of Baroda, Vadodara 390002 www.msubaroda.ac.in/
Course : Diploma in Commercial & Banking Law
Gujarat University, Navrangpura, Ahmedabad 380003 www.gujaratuniversity.org.in
Course : Certificate Course in Banking Management (1 year)
University of Madras, Centenary Bldg., Chepauk, Madras 600005 www.unom.ac.in/
Courses : Certificate in Banking (6 months). BBM (Banking Mgmt)
Madurai Kamaraj University, Palkalai Nagar, Madurai 625021 www.mkuniversity.org/
Course : M Com ( Banking) Distance Education