The Non-Banking Financial Companies have made strong roots in the Indian financial sector. They have become a fast emerging segment of the national economic system. The NBFC sector is not homogeneous in nature, rather it has diverse groups of institutions working on it, which are quite different from commercial and co-operative banks. They work in a variety of ways like giving out loans, accepting deposits, leasing and even selling via hire purchase.
Why NBFC? The main forte of these institutions is their ability to carve out highly personalised and customised services. These companies seek funds from the public either in a direct manner, or an indirect manner which is eventually transferred back to the public. A very important point to consider while choosing a career in the NBFC sector is that the industry is growing at a very rapid pace and is being recognised as complementary to the traditional banking setup, so considering it as a career is not a risky choice. In the digital era, the NBFC has heavily invested in technology as its driving force. They have done it in such a manner that gigantic banks have been reduced to just trying to play catch-up. It is a common theme that is shared by a lot of fi nancial institutions that primarily use technology to carve out services to improve the effi ciency of fi nancial markets.
Careers in the NBFC Sector If you work in this industry, your career path will be set at a pace equivalent to the rate of growth of this industry. The good news though is that this sector is growing everywhere, be it Africa, Asia, Europe or the Americas. According to a report churned out by Accenture, the sector has spiked up from $4.05 billion to $12.2 billion in just one year between 2014 and 2015. This means a 300% growth, which is just amazing. This shows that the trajectory of grown is sharp and fast. You may join in as an analyst and climb up the ladder to an associate then a vice-president within very little time. However, if you want to get into technical or managerial roles, you have to make your entry accordingly. The NFBCs are seeing a great job boom in this day and age. Experts have stated that 46,000 jobs will be added between 2014 and 2024 just in the city of London in the NFBC sector itself. This means that the sector is set to provide a stable career and great fi nancial benefi ts coupled with great prospects of growth. Another fact to consider while choosing this industry as your career is that this industry perfectly suits the millennials. This is not only due to the industry being associated with advanced technology, but many millennials have seen their relatives suffer from serious fi nancial setbacks and banks not being able to help them out.
Reach Out: www.rbi.org.in/nbfcfaqs