“FPSB India Highlights Unemployability Challenge in Financial Sector Despite 18 Lakh Job Vacancies”

India’s Financial Sector Faces Unemployability Challenge Despite Job Abundance

In a startling revelation, Krishan Mishra, CEO of the Financial Planning Standards Board India (FPSB India), highlighted a significant challenge facing India’s financial services sector: unemployability. Despite the creation of nearly 46.86 lakh jobs last year, a staggering 18 lakh positions remained unfilled, underscoring a critical gap in the sector’s employment landscape.

Speaking to PTI, Mishra pointed out the paradox that while jobs are plentiful, there is a stark lack of qualified individuals to fill these roles. "This is because of unemployability. Jobs are there, but people are not capable enough to take them up," Mishra explained. The data, sourced from the National Career Services portal of the central government, paints a concerning picture of the state of employment in the financial services sector.

The demand for skilled professionals in banks, insurance companies, brokerage houses, and mutual fund companies is high. An online job search reveals that there are about 40 times as many job openings as there are Certified Financial Planner (CFP) professionals available to fill them. This discrepancy highlights a significant opportunity for those willing to acquire the necessary qualifications and skills.

FPSB India, the Indian subsidiary of the global Financial Planning Standards Board Ltd, is at the forefront of addressing this challenge. With only 2,731 CFP professionals in India compared to a global count of 2.23 lakh, the country is poised for a substantial increase in certified professionals. Mishra projects that by 2030, India will have around 10,000 CFPs, yet this will still fall short of the estimated requirement of 1,00,000, given the burgeoning demand.

Addressing the misconception that financial planning is reserved for the elite, Mishra emphasized the universal need for financial education. "Personal finance was ignored in India. People thought financial planning is for the elite. But, in reality, wealth management is for the elite while financial planning is for everyone. We need to be financially educated," he stated.

In a move to bridge the talent gap, FPSB India and the Indian Institute of Management Ahmedabad (IIMA) have recently signed a strategic Memorandum of Understanding (MoU) to launch capacity-building initiatives for professionals in financial planning and investment advisory services. This collaboration aims to enhance training programs, conduct applied research, and organize workshops on contemporary themes.

Furthermore, FPSB India’s partnership with the International Financial Services Centres Authority (IFSCA) at GIFT City aims to promote GIFT IFSC as a ‘Global Finance Hub’. This initiative seeks to enhance the financial market ecosystem and nurture skilled professionals to meet GIFT City’s growing demand. Currently home to 628 firms in the banking and financial services sector, GIFT City in Gandhinagar is expected to generate nearly 1.5 lakh jobs in the next five years, further emphasizing the critical need for qualified financial professionals.

As India’s financial services sector continues to grow, the challenge of unemployability presents both a hurdle and an opportunity. With strategic partnerships and focused educational initiatives, there is hope that the gap between job availability and skilled professionals can be bridged, paving the way for a more robust and inclusive financial ecosystem in India.