AI and ML Transforming BFSI Sector, Creating High Demand for Skilled Professionals

The banking, financial services, and insurance (BFSI) sector is undergoing a digital revolution driven by artificial intelligence (AI) and machine learning (ML).

The Reserve Bank of India’s (RBI) recent annual report highlights the importance of technology in the BFSI sector. Covering the period from April 2023 to March 2024, the report emphasizes the need for tech-driven tools to prevent banking fraud, strengthen online banking, and support the Unified Payments Interface (UPI). This technological surge has also created a booming job market for skilled professionals.

A report by Instahyre at the end of 2023 sheds light on the most sought-after tech skills in the BFSI sector. The report analyzed various experience levels, salary trends, and workforce diversity.

Data science emerged as the most popular tech domain, thanks to its ability to extract valuable insights from massive datasets. Python is the preferred programming language for data scientists, followed by R for data analytics. Interestingly, ML skills are less common across all experience levels.

DevOps, known for its complexity, is attracting a growing number of tech professionals. Freshers are keen on mastering AWS skills to secure higher salaries, while Jenkins is popular among DevOps professionals with over two years of experience. With cyber threats on the rise, cybersecurity skills are in high demand, especially among freshers and leaders. Security testing remains a focus area for mid-level professionals.

The report reveals a concentration of tech talent in certain cities, with Pune leading the pack, followed by Bengaluru and Hyderabad. It also analyzes salary trends across different tech skills and experience levels. In data science, ML skills witness the sharpest rise in average salary from freshers to leadership positions. Big data professionals see the highest salary increase for data warehousing expertise, while data analysis shows the least growth. Cybersecurity offers the highest salary boost within the IT security domain.

The report also acknowledges the gender gap in the BFSI tech sector, with Python showing the widest gap in data science and Java the narrowest. The report provides a comprehensive analysis of diversity across all 66 skills covered in the study.