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Payment Banks and Small Banks: A New Opportunity for Jobs in Banking Sector

Jan 6, 2017 16:13 IST

RBI has recently given in principal approval to setting up of differentiated banks such as Small Banks and Payments Banks in India in order to boost financial inclusion in the country. RBI has approved 10 players for small banks and 11 entities for payments banks in the country with their activities and services restricted to acceptance of deposits, issuance of debit cards, remittance services etc. One thing is certain and that is the banking sector is undergoing a lot of changes and this is one change lakhs of banking aspirants across the country will welcome. The simple reason is that these banks will create even more jobs in the already thriving banking sector of the country.

Small and Payments Banks: A Welcome Opportunity

As per statement given by Managing Director and CEO of country's top private lender, ICICI Bank Chanda Kochhar "Both categories of new banks have important roles to play as India has a very large untapped market. It will complement the existing banking system and there will be opportunities for players to identify mutually beneficial partnerships”.  

In the course of next two to three years, small and payments banks will recruit a huge number of people in the junior level as well as mid level and senior level positions to give their business a head start over the other players in the sector:

  • Junior Level Staff Required: These differentiated banks will need to fasten their seat belts in order to recruit staff in the junior level so that they can acquire business in the already saturated market along with product management, transaction banking, operations etc. The compensation package is expected to be competitive keeping in view the fierce competition from the other players in the sector.
  • Mid Level Staff Required: This is the area where the experienced lot is going to make it big since the only way to get experienced staff for these positions will be to lure from other banks and more specifically the existing banks in the country. The salary is going to be very good in this segment in order to attract the best of talent available.
  • Senior Level Staff Required: This is another area where the new banks need to shell out more money so that they can attract the best talent in the market. These people also need to be poached from other players in the sector and the compensation offered should also be in line with the present trends in the industry or if possible, more than that.
  • Different Work Culture, though: Though there are chances of new vacancies coming up, the work culture of these banks will be very different from the existing ones since these are new kids in the block. So, one need to understand that everything will not be organized as in the bigger players in the market.
  • Rural Thrust: Since these banks are going to focus on the unbanked masses of the country most of whom reside in the rural areas. The new hires need to work may be in the remotest of places and have to spend a considerable amount of time in their career in these places.
  • You have to be cautious: In case you are a senior executive or a mid level executive or a fresher, you need to think over if you are ready to take the leap since the new banks are still to find out if their models work and there is no certainty about the future of these banks in the long run.

It is true that since new organizations are coming to the market, new job opportunities will open as well, but, one needs to thoroughly understand the whole culture and pros and cons of joining these new banks, especially the ones having experience. We have already seen the downside of start-up culture in India and nobody knows what holds for these banks especially when giants like SBI are also making foray in the same business area. But, these banks are going to open a plethora of new opportunities and new challenges in the already competitive banking sector in the country. It is upto you how far you are ready to accept these challenges and come out with flying colours.

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