REPORT
JOHN BROS FINANCIAL SERVICES PVT.LTD, PUNE.
Title :- BFSI sector in India
Date: - 30th June 2020
Place: - Pune.
Presented by:- Anand Dhavale.
Introduction:-
Banking, financial services and Insurance (BFSI) is an industry term for companies
that provide range of financial products or services they are as follows:-
The banking services includes
1. Core banking is a banking service provided by a group of network bank branches
where customer can access their bank account and perform their basic
transaction from any other member branch office.
2. Retail banking is when a bank executes transaction directly with consumers
rather than corporations or other banks. services offered includes saving and
mortgages , personal loans , debit cards and credit cards.
3. Private banking is banking , investment and other financial services provided by
banks by banks to private individuals who enjoy high levels of income or invest
size assets.
4. Corporate banking refers to the aspects of banking that deals with corporate
customers.
5. Investment bank is a financial institution that assist individual, corporations, and
governments in raising financial capital.
6. Credit/debit cards is typically a plastic card issued by the bank to its clients that
perform various number of services like transaction , maintenance of bank
accounts or througe a credit account.
The financial sevices include
1. Stock broking is basically buying and selling of capital stocks and other securities.
For ex selling and buying of shares .
2. Payment gateways is an E-Commerce application service provider service that
authorize credit card payments for E-BUSINESSES. Ex Cashfree., MobiKwik,
paypal etc.
3. Mutual fund is a type of professionally manage investment fund that pools
money from many investors to purchace securities.
Insurance is the equitable transfer of a loss, from one entity to anotherin exchange of
payment. Insurance covers both life and general insurance ( car, property , business
etc)
BFSI sector in India is now valued at Rs.81 trillion and is said to become fifth largest in the world
by year 2020 and third largest by year 2025.
Banking sectors in India:-
Banking is one of the most important pillar of the BFSI industry. It would not be wrong to call it
an industry in and of itself, comprising of the banking sector.
Indian Banking industry consists of
27 public sector banks,
21 private sector banks,
49 foreign banks,
56 regional rural banks,
1,562 urban cooperative banks and
94,384 rural cooperative banks.
Public sector banks account for 61.21% of the total banking assets in 2019. In 2019, total
assets in public and private banking sector were $1,422.97 bn and $741.79 bn, respectively.
Trends in the Banking Industry because of innovation and technology
Technology has played an influential role in furthering the cause and effect of banking on the
Indian masses. In addition to that, bank have become customer centric . As per a stat, in 2020,
this type of banking use will increase estimated 87% of the transaction volume. Government
Regulations are supporting the innovation and technology in the industry the effect of which is
visible in the following trends
a. Digitization & Digitalization
The services is like internet-enabled banking, Real Time Gross Settlement, Electronic Funds
Transfer, and Immediate Payment Service (IMPS) have driven the cost of operations down.
They are aiding front-lines to make less human errors than before and increase in the profit
margins of the banks.
b. Online Mobile Banking
Mobile banking apps have taken banking to a whole new level and reduced the dependence on
retail banking firms. Today , an individual with an smartphone and a internet connection can
easily monitor account balance, perform fund transfer, and make payments without visiting the
branch. Ex sbi yono etc
c. Unified Payment Interface (UPI)
A Unified Payment Interface app is a payment system that allows immediate inter-bank fund
transfer with a few clicks on your smartphone in few sec. It was engineered by the National
Payments Corporation of India together with the Reserve Bank of India. EX , BHIM UPI, Google
pay, phone pay etc.
f. Digital-Only Banks
This category of banking is new introduced by the Reserve Bank of India. Payment banks have
the legal capacity to offer the most of facilities that conventional banks do offer, but except for
issuing loans and credit cards. Each and every retail customer is able to deposit up to Rs.
100000 in the payments bank. EX .PAYTM BANK , AIRTEL PAYMENT BANK etc.
Challenges in BFSI:-
Banking -
1) Demand and supply and service are not reaching to certain population which is in rural
area .
2) According to the survey only 28% of farmers are getting loans rest are not getting asses
even.
3) Technology adoption by the uneducated people.
Financial service –
1) Low level of customer awareness.
2) Limited innovation in product offering.
2) Not proper marketing.
Insurance-
1) Accuracy in pricing of risk.
2) Rural market under penetrated.
3) Pension market remain untapped.
Opportunities:-
Banks offer a more number of vacancies as compared to other government jobs. Also, jobs are
increasing with fast growth in this sectors. Recruitment is going to see better trend due to large
number of retirements scheduled in the coming 4-5 years.
Government have taken intiative in providing bank services to rural areas It will release
numbers of jobs .
Conclusion:-
BFIS industry have been became the back bone of Indian economy and of individuals.it is the
fastest growing industry to make money and profits. There the various opportunities for an
individual.
Thank you…………..
