How much you can earn across roles in new-age banking and finance

The business landscape in India fosters all the positives for the expansion of the BFSI sector at a commendable pace. The BFSI sector has witnessed substantial growth lately owing to a multitude of interlinked factors. Modern banking practices have been revolutionized by technological breakthroughs, which have additionally introduced forth innovative solutions. With the rise of mobile banking, e-payments, and automated financial guidance services, consumers now have more accessibility and convenience. 

The proliferation of fintech companies, which leverage technology like blockchain and artificial intelligence to provide individualized, secure, and effective financial services, has also been spurred by shifting customer needs. This rising phenomenon in financial services and banking within the BFSI sector heralds a disruptive era driven by new prospects, better operational effectiveness, and a customer-centric mindset.

Pursuing a master’s degree like an MBA in banking and finance will help you explore lucrative career opportunities in the BFSI sector.

Top jobs in banking and finance

In the BFSI industry, job postings soared by about 53% between 2022 and 2023, as per a survey by Indeed. Investment banking, risk management, and portfolio management positions earned the most in the BFSI industry. The positions of financial manager, wealth manager, and credit manager were next.

Here is a brief description of roles and responsibilities along with the earning potential of different roles in the banking and finance sector.

Chief financial officer (CFO)

A CFO manages all financial operations and is essential in the development and execution of financial strategies,  financial risk administration, and the maintenance of the organization’s overall financial stability. Budgeting, dealing with investors, treasury management, financial evaluation and strategy, financial reporting, and shareholder interactions typically fall under the CFO’s purview. The highest estimated salary of a chief financial officer can go up to ₹ 101 Lakhs.

Key skills required: 

• Financial management
• Strategic planning
• Leadership
• Risk management

Compliance officer

The compliance officer is in authority to ensure that the bank or other financial institution abides by all relevant laws, rules, and internal procedures. They establish and enforce compliance initiatives, carry out routine audits, and keep an eye on internal procedures to reduce legal and regulatory risks. They collaborate closely with regulatory organizations and external auditors to ensure compliance and address any prospective compliance concerns. The highest estimated salary of a compliance officer can go up to ₹ 15 Lakhs.

Key skills required: 

• Knowledge of regulatory frameworks
• Risk assessment
• Attention to detail
• Strong ethics

Financial advisor

These professionals offer specialized financial counsel to clients, who can be individuals, firms, or institutional investors. They evaluate their clients’ risk tolerance and monetary objectives before creating extensive financial strategies to assist them in achieving their goals. Financial advisors offer advice on wealth administration, retirement strategy, tax reduction, and investment approaches. The highest estimated salary of a financial advisor can go up to ₹ 8 Lakhs.

Key skills required: 

• Financial planning
• Investment knowledge
• Client relationship management

Investment banker

An investment banker is a major player in facilitating diverse financial transactions and serves in the investment banking section of a financial institution.  They provide their clients with capital raising via IPOs (Initial public offerings), equity or debt issuances, and acquisitions and mergers. Financial analysis, assessments, and due diligence are performed by investment bankers to gauge investment prospects and offer customers strategic counsel. The highest estimated salary of an investment banker can go up to ₹ 40 Lakhs.

Key skills required: 

• Strong analytical skills
• Financial modeling, Negotiation
• Market knowledge

Chief risk officer (CRO)

The CRO is accountable for identifying, evaluating, and mitigating the risks confronted by banks or other financial organizations. They develop and place into practice risk management frameworks and strategies to ensure that the firm proceeds within acceptable risk constraints. The CRO is in charge of managing several risk-related tasks, including credit risk, market risk, operations risk, and liquidity risk. They collaborate closely with top management to determine risk tolerance, track risk exposures, along with implementing risk-reduction strategies in place. The highest estimated salary of a chief risk officer can go up to ₹ 101 Lakhs.

Key skills required: 

• Risk management
• Financial analysis
• Regulatory compliance
• Strategic thinking

Credit analyst

A credit analyst assesses an individual, enterprise, or institution’s credibility to figure out whether they are financially able to pay back loans or other financial obligations. They examine financial records, credit scores, and other pertinent data to assess the risk involved with disbursing funds or granting credit. Credit analysts also consider market conditions, industry trends, and collateral to make wise credit choices. The highest estimated salary of a credit analyst can go up to ₹ 15 Lakhs.

Key skills required: 

• Credit analysis
• Financial statement analysis
• Risk assessment
• Attention to detail

Fund manager

A fund manager is in the role of regulating and tracking the performance of investment funds including hedge funds or mutual funds. They conduct the necessary investigations, analysis, and research to figure out potential investment opportunities and develop investment strategies compatible with the fund’s targets. These experts are liable for making buy/sell decisions, evaluating portfolio performance, and adhering to regulations. They also oversee the fund’s assets to generate favorable returns, interact with clients, and deliver regular updates. The highest estimated salary of a fund manager can go up to ₹ 93 Lakhs.

Key skills required:

• Investment management
• Portfolio analysis
• Market research
• Decision-making

Portfolio manager

A portfolio manager is obligated for managing all kinds of assets, such as bonds, equities, or additional financial instruments, on behalf of individuals or institutional customers. Investment strategies that are tailored to the client’s goals, degree of risk aversion and period are devised and executed into action by these professionals.  Portfolio managers perform research, keep watch on market trends, and arrive at investment choices to maximize portfolio performance. The highest estimated salary of a portfolio manager can go up to ₹ 30.5 Lakhs.

Key skills required: 

• Portfolio management
• Asset allocation
• Risk assessment
• Financial forecasting

Factors influencing salaries in banking and finance roles

Multiple factors affect compensation in the financial services industry for various roles. These aspects influence the salary packages offered to practitioners in this industry. Here are the key factors influencing salaries in new-age banking and finance.

Relevant master’s degree/Certificate course

The salary range in new-age banking and finance can be substantially raised by pursuing a pertinent master’s degree or earning a professional certificate program. For instance, a Master’s in Finance, MBA with a finance focus, or the Certified Financial Analyst (CFA) accreditation can improve your credentials and demonstrate to prospective employers your level of expertise. 

Industry-specific knowledge

Professionals aiming to boost their earning potential must have extensive knowledge of the banking and financial sector. This entails comprehending intricate financial tools, guidelines, risk-management strategies, and market dynamics. You can earn better compensation by staying current with market trends, modifications in financial laws, and advances in technology via ongoing learning and professional credentials.

New-age skills

Professionals with new-age skills are highly desirable as the banking and financial sector continues to evolve. Skills in data analysis, FinTech (Financial technology), AI, ML, blockchain, and digital advertising can have a significant impact on earnings. With the use of these capabilities, professionals can leverage technology to spur innovation, promote operational effectiveness, and arrive at data-driven choices. 

Professional connections

Establishing links with influential practitioners, industry experts, and mentors can lead to valuable counsel, job prospects, and access to better-paying choices. A strong network could assist you in gaining access to insider details regarding job openings, raise your profile among employers, and possibly even influence salary negotiations in your favor.

While these elements are crucial, it’s also vital to take into account other elements that can have an impact on income levels, such as prior experience, work performance, the company’s financial situation, and geographic variations in pay. 

Also read: How TAPMI online MBA-BKFS electives help professionals tailor their career paths

Emerging technologies in banking and finance

The banking and financial industry has seen a tremendous transformation recently, driven by novel technologies. These developments have transformed how financial institutions function, engage with clients, and oversee their procedures. The following are some of the acknowledged emerging technologies currently reinventing the banking and financial sector:

Artificial intelligence (AI) and machine learning (ML):

AI and ML are redefining banking and finance by automating procedures, optimizing fraud detection, enhancing the client experience, and offering tailored financial proposals. They analyze massive quantities of data to uncover patterns, forecast market developments, and deliver customized fixes.

Blockchain:

Decentralized, open, and reliable transactions are made feasible by blockchain technology. It promotes data security, facilitates effective cross-border payments, and slashes transaction expenses. The blockchain’s smart contracts eliminate the need for middlemen by streamlining processes like loan approvals.

Robotic process automation (RPA):

RPA raises operational efficiency and lowers error rates by automating repetitive operations like data entry and report production. Banks and financial organizations can streamline their operations since it opens up staff members for more demanding and value-added services.

Internet of things (IoT):

Real-time data gathering from multiple sources, including wearables and connected gadgets, is made possible by IoT devices. Banks and financial institutions can use this data to deliver customized services, risk analysis, and insurance underwriting. IoT also facilitates seamless transactions and improves fraud detection.

Biometrics:

Customer identification employing biometric technologies, such as voice authentication, facial recognition, and fingerprint scanning, is reliable and practical. These innovations improve the safety of financial transactions, prevent fraud, and optimize authentication procedures.

Cloud computing:

Banks and other financial institutions can store and manage massive amounts of data safely, thanks to cloud computing. It improves cost effectiveness, scalability, and flexibility. A faster decision-making process and enhanced customer service are made feasible by cloud-based solutions that provide real-time collaboration, remote management, and data analytics.

Open banking:

Open Banking leverages Application APIs (Application Programming Interfaces) to promote safe financial data exchange between different organizations. It fosters innovation by enabling third-party developers to come up with novel financial apps and services, boosting competition while improving the user experience.

Big data analytics:

Data proliferation in banking and finance necessitates advanced analytics skills. Large datasets can be analyzed using big data analytics to gain insightful data that assists with handling risks, identifying fraud, segmenting consumers, and customized marketing. It aids financial firms in making data-driven decisions while improving overall performance.

Read more: Top emerging technologies in financial services and how to upskill in them

Become job-ready with tapmi’s online MBA BKFS

The online MBA in BKFS (Banking and Financial Services) offered by TAPMI will help you gain the knowledge and skills you need to succeed in the financial industry. This extensive program is meticulously developed to prepare you for the job market with the acumen and expertise demanded by the sector. You will be involved in an interactive and dynamic learning experience via cutting-edge virtual platforms under the tutelage of renowned educators and industry experts. 

An online MBA in banking and finance will help you master the nuances of investment banking, risk management, economic analysis, and more while refining your management and decision-making skills. You will graduate from TAPMI’s online MBA in BKFS as a honed finance expert equipped for a successful career in the corporate world.

Read more: MBA in finance vs MBA in banking and finance