Amity Institute Of Training & Development

December 3, 2024, Artificial intelligence is disrupting many industries across the world, but in the case of the banking sector, the disruptions taking place are pretty deep. The infusion of artificial intelligence tools within banks is not just a trend; it is one very important evolution that has the probable power to have financial services redefined. Be it smoothing operations or bringing a better experience to customers, the impact of AI will be multidimensional and wide-ranging. Understanding the Meaning of Artificial Intelligence Understanding the meaning of artificial intelligence is very crucial to grasping its applications in banking. Artificial intelligence simply refers to simulating human intelligence in machines so that they could do things that would otherwise require human intervention. Such capabilities are exploited through various artificial intelligence tools and platforms available on artificial intelligence websites and developed by artificial intelligence companies. Artificial Intelligence Benefits of Artificial Intelligence in the Banking Sector Artificial intelligence comes with many benefits in the banking sector. It helps solve a number of problems common in the banking sector by detecting and managing risk and fraud to improve customer service delivery. It facilitates reform within the sector of banking through automating compliance processes and making sure there are strategic insights. Therefore, this necessarily creates demands for artificial intelligence jobs in banking, forcing many professionals to seek artificial intelligence training in a bid to remain competitive, as well as courses on artificial intelligence. The Future of Artificial Intelligence in Banking A promising future of artificial intelligence in banking is seen with continuous improvisations where innovative solutions are obtained to enhance efficiency. Artificial intelligence in the field of the latest banking sector news shows how crucial it can be in making a difference in the future for this industry. Education in the field of technology, like artificial intelligence in education, ensures that the professionals of the future are not lacking in this, hence a knowledgeable workforce. Types of Artificial Intelligence Utilized in Banking Various types of artificial intelligence are utilized in banking to fulfill different needs. For example, chatbots developed with AI enhance customer service, while predictive analytics have given much-needed impetus to decision-making procedures. The continuous artificial intelligence research in the domain is leading to the development of more advanced applications. Did you know? AI can look at your expenditure pattern and advise on personalized financial products? That is, your bank may suggest to you the best credit card or loan that suits your consumption habits. Increasing Demand for AI Professionals in Banking With technological advancement in the banking sectors, the need for able professionals is also increasing, subsequently increasing banking sector vacancies. Most of these vacancy positions require professionally trained experts in AI, thus raising the demand for artificial intelligence online courses and related training programs. AI is probably the most important thing humanity has ever worked on." -Google CEO Sundar Pichai The Relevance of AI in the Indian Banking Industry This statement from Google CEO has become quite relevant in the Indian banking industry, especially after demonetisation. With an average Indian consumer getting at ease with online banking, making internal operations efficient and the customer experience more effective has certainly become a new normal in modern banking. COVID 19 had triggered online banking the push it was looking for and had accelerated the use of emerging technologies like AI at full throttle. Improving data quality and expanding reach are some of the other critical factors giving more impetus to AI in banking of today. About 32% of financial service providers are already using AI technologies like predictive analytics, voice recognition among others, according to joint research conducted by the National Business Research Institute and Narrative Science. (Source: Paymentscardsandmobile) The Critical Role of Artificial Intelligence in Future Banking It is clearly evident that Artificial Intelligence has become one of the critical pillars laying the foundation of future banking in India. Artificial Intelligence is not only leading analytical solution, but also redefining the way customers interact with modern day services provided by the banks. It’s becoming a remedy for challenges faced by banks like customer experience personalization and loyalty building at one hand to security features such as anomaly detection or fraud prevention on the other. Key Areas Impacted by Artificial Intelligence in Banking Presently Artificial Intelligence is impacting every area of bank operations, customer relationship management, fraud detection as well as risk management. In order to simplify it further these aspects can be divided into four thrust areas: - Sales optimization - Driving business growth - Streamlining operational processes - Credit risk management (Source: Benefits resulting from the use of AI in FinTech, Synerise) Besides these four major areas impacted by Artificial Intelligence, there are some other features such as AI bots, digital payment advisers and biometric fraud detection mechanisms that lead to higher quality of services to a wider customer base. The Future of Artificial Intelligence in the Indian Banking Sector According to Deloitte, AI will provide the foundation for increased product and service innovation. Further, artificial intelligence has the potential to transform customer experiences and establish entirely new business models in banking. To achieve the highest level of results, there needs to be a collaboration between humans and machines that will require training and a reassessment of the future of work in banking. Also, mass customisation is the key to unlocking significant opportunities in the future and can be tapped only through technologies like AI and blockchain. Upskilling Bank Employees for AI Integration It is imperative that the bank employees are upskilled to understand AI at a broader level and are adept in leveraging the benefits of Artificial Intelligence which will help them to serve their customers better. To help banks bridge this knowledge gap, Amity Institute of Training & Development (AITD) in partnership with industry leaders have been developing cutting edge research-based programs which are easy to deploy in both virtual and physical environments. Did you know? AI detects and predicts the market trend as well as the needs of customers to customers with outstanding accuracy. Depending on the finding, banks develop new products and services to meet the emerging demands. Interested in Learning more about the topics, here are a few links to relevant researches and studies conducted: Utilization of artificial intelligence in the banking sector: a systematic literature review ARTIFICIAL INTELLIGENCE IN INDIAN BANKING SECTOR: CHALLENGES AND OPPORTUNITIES Artificial Intelligence (AI) in Banking Industry & Consumer’s Perspective Conclusion AI has, therefore, not only integrated computers and artificial intelligence in the banking sector, but has given this integration new meaning. This extended definition gives banks innovative solutions to traditional problems and opens up ways for a more effective, secure, and customer-oriented financial environment. Did you know? AI systems detect fraudulent transactions within milliseconds. These systems monitor all transactions; upon detection of any unusual activity, it is flagged to aid in enabling the prevention of fraud from taking place.

December 3, 2024, Competency mapping and succession planning become the most important issues in today's dynamic business environment. It systematically identifies the skills, knowledge, and behaviors necessary for effective job performance. It effectively fosters recruitment and employee development. This is evidenced by research, since 80% of employee turnover derives from inappropriate hiring decisions. The need for an appropriate competency framework of HRM applies here. Therefore, a way of ensuring that a business passes leadership systematically to provide assurance for the future. High-potential employees are ready for progression to replace leadership whenever such needs arise. This gives an early warning of avoiding risks associated with leadership strategy development and boosts the growth culture within organizations. Since 80% turnover in organizations is attributed to poor hiring decisions, capability analysis can be instrumental in reducing turnover rates within organizations while improving organizational efficiency. In this blog we will explore the details of such processes, their techniques, and advantages on how they could be implemented effectively within organizational systems. Do you know? Since its origin in the 1970s, competency mapping has grown exponentially? From what began as merely job description mapping to understanding the culmination of requirements for skills and behavioral outputs in any activity. What is Competency Mapping? This is the structured process of human resource management. It is aimed at identifying and assessing skills, knowledge, and behavior capabilities for employees to function effectively. It makes a detailed inventory of competencies critical to success at the job role or entire organization. Key Objectives of Competency Mapping Alignment of Skills to Organizational Goals: Ensures the adequacy of employee capabilities to meet the organization's needs. Improving the Recruitment Process: Provides a framework for defining ideal candidate profiles. Employee Development: Facilitates areas of improvement and growth. Supports Performance Management: It aligns performance evaluations into competencies and therefore brings fairness to the appraisal. Competency Mapping Methods: The 7 Steps You Need to Know 1. Company Vision  Long and short-term goals, key strategic initiatives, and organizational capabilities/gap assessment are important in determining future talent needs, target markets and will give an indication of how to develop your employees. 2. Skills Inventory  Assess current employees to determine suitability for higher roles. Using a competency framework, you can identify specific competencies needed for success. Skills inventory helps assess employees against these competencies making it easier to determine what is already present and what is still required. 3. Identify & Recruit  If you already have the right talent pool, you can move to Step 4. Otherwise, you will have to recruit talent based on the competency gaps you identify in your skills inventory. 4. Evaluate & Inform Conduct competency assessment of employees to see if their current competencies levels match or are close to those required for the proposed position. It is good to let your employees know they have future opportunities in your Company. 5. Develop Once you have a selection of employees who have the potential for growth, it is important to develop their skills according to competency assessment. The company must provide learning and development opportunities. 6. Engage Retention It is an issue for many organizations, so you need to ensure your high potential employees are engaged and want to remain with your organization. 7. HR Procedures  The competency map can be integrated into job descriptions, performance appraisals, and competency mapping training programs to bring consistency in the organization. Did you know? The term "competency mapping" is derived from the Latin word "competentia," meaning "the ability to do something well." The etymology of the word points to what competence mapping essentially is-meaning the identification of the skills that help an organization succeed. Role of Technology in Competence Mapping Framework With most of the organizations relying more and more on the route of technological excellence to enhance their HR processes, several advancements have come in the way of skills mapping tools in HR software, especially in their implementation. The tools further streamline the process through automatic assessments, dashboards, and analytics support to ensure decision making based on data. For a company that gives priority to sales, we shall illustrate how such competency is defined & performance level established. The Significance of Succession Planning It is the strategic process that involves identifying and developing internally available personnel to replace key leadership positions in the future. The process ensures an arrangement of stability and organisational continuity at the transition point. Succession Planning Process for Effective Leadership Transition Critical Position Identification: Organizations must know which roles are critical to the organisation's success and thus require a succession plan. Competency Requirements: There is a critical requirement that clear competencies in these key positions must be defined for effective succession planning. Internal Talent Assessment: This internal talent can then be assessed against those competencies to spot candidates with high potential for leadership roles in the future. Development Plan: Based on this identified candidate, development plans can then ensure that he/she is adequately prepared to take up a leadership role when the need arises. DO YOU KNOW? 75% of companies with a formal process for successive alignment reported that it had improved employee engagement and retention. This may, therefore, be indicative of the actual effect which effective succession planning might have on the culture of the organization and even the organizational performance. Essential Competence Analysis Tools for Effective Succession Planning Many tools could facilitate competence analysis and succession planning process Competency Management Systems: Software programs that automate tracking and monitoring competency development processes as well as other competence-based assessments. Psychometric Evaluations: The assessment tools aim at testing interpersonal skills, critical thinking, among others to become good leaders. 360 Degree Feedback Systems: These are those systems which provide multi-source feedback of various sources from which an employee obtains insight about his or her competencies. (Source:aihr) Jonathan Westover, OD/HR/Leadership consultant from Human Capital Innovations, emphasizes: “It is important to ensure that feedback is focused on behaviors and actions, rather than personal characteristics or traits. This can help ensure that feedback is objective and focused on areas that the employee can actually improve upon.” Competencies Mapping Format for Sales Roles Proficiency levels may range from Level 1 (Novice) to Level 5 (Master). Each role will have a Desired Proficiency Level (DPL). The analysis of competencies required for higher roles and mapping them with proficiency shown by potential leaders, a clear road map for successive planning can be created. Effective succession planning has advantages both for employers and employees. Employees benefit by knowing the organization has plans for their future development opportunities, and an increased perception of self-worth and value. (Source: imocha) DO YOU KNOW? Organizations on average report 8 percent of new skills added to every role every year, thus making the requirements of jobs dynamic in nature and creating the need for continuous talent mapping. Integrating Competency Mapping with Succession Planning Competence mapping in succession planning helps create a cohesive strategy related to workforce capabilities as they align with the future needs of leadership positions. It helps organizations anticipate when shortages in the workforce will likely occur as well as cultivate a continuing development culture. How Do Organizations Overcome Succession Planning challenges? This creates issues within an organization can be defined more clearly as under-identification of high potentials and lack of engagement among possible successors. Steps to overcome these issues are as follows: Conduct talent reviews regularly. Provide clearly defined career pathways. Create a culture of lifelong learning and development. This research paper titled "Competency Mapping Level of Employees of Weikfield Foods Pvt. Ltd. Pune during Post Covid-19" by Dr. Swati Manoj Yeole and Dr. Jitender Kumar Sharma (2024) emphasizes the relevance of competency identification in this post-COVID-19 era, where desired competency levels for different roles could be identified in order to improve the performance and talent growth of employees. How AITD Can Help in Competency Mapping & Succession Planning? Amity Institute of Training and Development (AITD) provides comprehensive solutions that help organizations successfully implement competency mapping training & leadership continuity planning. Being a well-known HR training & development program delivery institution, AITD is well aware of the issues organisations face in achieving workforces with desired skills to meet strategic goals. Role of AITD in Competency Mapping AITD Competency alignment is the methodological approach toward the alignment of the skills of employees with the organizational goals. Their services include, 1. Job Analysis During AITD's job analysis, they identify the central responsibilities and tasks that are supposed to be performed and the core competencies required in a particular role. 2. Competency Framework Development AITD formulates customized competency framework specifications based on the necessity of the type of skills and knowledge required for success in a particular job role. 3. Competency Based Assessment AITD uses psychometrics and 360-degree feedback tools amongst other things, to assess employee competencies against the defined models. 4. Gap Analysis Analysis of existing and required competencies follow the skill gap and allow AITD to initiate and organize proper training and development programmes. AITD Supports in Succession Planning AITD provides diverse tools to develop effective key position planning efforts: 1. Competency Alignment Training AITD develops the practice of talent succession through different training and development programs in the selected employees so that they become ready to take on greater challenges when the organizations need it. 2. Workshops/Seminar The AITD makes organizations familiar with new ideas and developments in career mapping by conducting workshops occasionally on the best practices. 3. Consulting services AITD offers consulting services on succession plan designing suitable for any specific organization. 4. Competence mapping Certification Certification enables AITD to empower the HR practitioner with knowledge mapping and linking process learning to be implemented within their organizations. Contributed by AITD According to AITD, organizations succeeding in applying competency framework development and succession planning strategies are 1.5 times more likely to beat their competitors. Also, a study states that 80 percent of employee turnover is a result of a wrong hiring decision. That clearly gives out importance to integrate knowledge mapping in the recruitment process. Through its partnership with AITD, organizations will gain the ability to more clearly competency mapping training and leadership continuity to ensure that the workforce will be competent and future-proof. AITD provides customized solutions while being highly aware of HR best practices, making them a trusted partner for the success of organizations.

December 3, 2024, I wonder what makes people creative – Do they see things in some other dimensions? Do things or situations appear to them differently? Is it something in their genes? Is it a trait that everyone—not just creative “geniuses” like Picasso and Steve Jobs—possesses in some capacity? Can anybody be creative? Is it all about having a different mindset? – Let’s explore together what creativity is and what mindset it takes to be one. Also creativity is explained. Everyday Creativity Creativity is not just your ability to draw a picture or design a product. We all need to think creatively in our daily lives, whether it’s figuring out how to make dinner using leftovers or fashioning trendy costumes out of not-so-used clothes in your closet. Creativity is an amazing concept and a means which refers to a human capacity to produce or create something new through imaginative skills. In general, the term creativity refers to a richness of ideas and originality of thinking. Did You Know? Creativity activates the brain's default, executive, and salience networks. (Source: Pinterest & David C. Gill) Origins of Creativity Does creativity stem from nothing? Of course not. All new ideas, products, art and music pieces, and works of literature owe their origin to ideas or products already in existence. Often these previous ideas and art forms directly inspire the future creator and innovator. Newton’s well-known adage that he was “standing on the shoulders of giants” was not simply false humility. Even for someone as great as Newton, creativity only springs forth from things already in existence. Mindset is one of those conditions that make creative and innovative thought and behavior more likely in some people and less likely in others. The Science of Creativity Psychology and neuroscience researchers have started to identify thinking processes and brain regions involved with creativity. Recent evidence suggests that creativity involves a complex interplay between spontaneous and controlled thinking – the ability to both spontaneously brainstorm ideas and deliberately evaluate them to determine whether they’ll actually work. Brain Networks and Creativity As per the research done by Roger Beaty from Harvard University, it was found that the brain regions within the “high-creative” network belonged to three specific brain systems: the default, salience, and executive networks. The default network is a set of brain regions that activate when people are engaged in spontaneous thinking, such as mind-wandering, daydreaming, and imagining. This network may play a key role in idea generation or brainstorming—thinking of several possible solutions to a problem. The executive control network is a set of regions that activate when people need to focus or control their thought processes. This network may play a key role in idea evaluation or determining whether brainstormed ideas will actually work and modifying them to fit the creative goal. The salience network is a set of regions that acts as a switching mechanism between the default and executive networks. This network may play a key role in alternating between idea generation and idea evaluation. The Creative Brain's Unique Wiring An interesting feature of these three networks is that they typically don’t get activated at the same time. For example, when the executive network is activated, the default network is usually deactivated. The results suggest that creative people are better able to co-activate brain networks that usually work separately. The findings indicate that the creative brain is “wired” differently and that creative people are better able to engage brain systems that don’t typically work together. Future research is needed to determine whether these networks are malleable or relatively fixed. Is it possible to boost general creative thinking ability by modifying network connections? Can a creative mindset be developed? Did You Know? REM sleep boosts problem-solving and creative thinking. Historical Insights into Creativity Once, a distinguished visitor to Henry Ford’s auto plants met him after an exhaustive tour of the factory. The visitor was lost in wonder and admiration. ‘It seems almost impossible, Mr. Ford,’ he told the industrialist, ‘that a man, starting 25 years ago with practically nothing, could accomplish all this.’ Ford replied, ‘But that’s hardly correct. Every man starts with all there is. Everything is here – the essence and substance of all there is.’ The potential materials – the elements, constituents, or substances of which something can be made or composed – are all here in our universe. The same principle holds good in creative thinking as in creativity in general. Our creative imaginations must have something to work on. We do not form new ideas out of anything. (Source: Idea-sandbox.com) (Source: Pinterest) Collaboration and Innovation As Henry Ford said above, the raw materials are all there. To say that Thomas Edison invented electricity or that Albert Einstein discovered relativity is a convenient simplification. It satisfies our ancient predilection for stories that are easy to comprehend and involve superhuman heroes. But Edison’s or Einstein’s discoveries would be inconceivable without the prior knowledge, without the intellectual and social network that stimulated their thinking, and without the social mechanisms that recognized and spread their innovations. To say that the theory of relativity was created by Einstein is like saying that it is the spark that is responsible for the fire. The spark is necessary, but without air and tinder there would be no flame. The Creative Mindset The creative mindset sees possibilities or connections that are invisible to less creative minds. You do not have to conjure up new ideas from the air. Your task as a creative thinker is to combine ideas or elements that already exist. If the result is an unlikely but valuable combination of ideas or things that hitherto were not thought to be linked, then you will be seen as a creative thinker. A genuinely creative accomplishment is almost never the result of a sudden insight, a lightbulb flashing on in the dark, but comes after years of hard work. Nurturing Creativity Each of us is born with two contradictory sets of instructions: a conservative tendency, made up of instincts for self-preservation, self-aggrandizement, and saving energy, and an expansive tendency made up of instincts for exploring, for enjoying novelty and risk—the curiosity that leads to creativity belongs to this set. We need both of these programs. But whereas the first tendency requires little encouragement or support from outside to motivate behavior, the second can wither if it is not cultivated. If too few opportunities for curiosity are available, if too many obstacles are placed in the way of risk and exploration, the motivation to engage in creative behavior is easily extinguished. At this point, let’s discuss how we can develop a creative mindset. Did You Know? Being curious enhances creativity. Being Curious When was the last time you felt curious about something? What are you curious about? Are there topics, subjects, jobs, ideas you think are a little interesting? Are there times when you watch something on the telly or hear someone talk about a subject and you light up? You don’t have to change everything about your life to lead with curiosity. Next time you speak to someone, you can simply ask them to tell you more about themselves. Being genuinely curious about people, places, situations, phenomena, and many more helps us to delve more about it. It gives us the vigor to go deeper and deeper to understand the same, that leads us to know to think differently and develop our instincts of exploring. Practice Patience Allow insights to come to you without forcing them or editing them. Creativity is chaotic, messy, and unorganized. After you ask the question, don't expect an immediate answer. Be patient. This step is about allowing the question to be there without your logical mind trying to capture an answer and packaging it into a neat box. The challenge here is to let go of the control of when the answer or creative mind solution arises. The more you try to force the answer, the less creative and rigid your mind will become. Relax Eureka! Eureka! – Remember the Archimedes story? Let's refresh it. The story behind that event was that Archimedes was charged with proving that a new crown made for Hieron, the king of Syracuse, was not pure gold as the goldsmith had claimed. Archimedes thought long and hard but could not find a method for proving that the crown was not solid gold. He decided to relax and give the creative mind a therapy, a bit by taking a bath in his bath tub. He filled a bathtub and noticed that water spilled over the edge as he got in and he realized that the water displaced by his body was equal to the weight of his body. Archimedes was able to determine that the crown was not pure gold due to the volume of the displaced water, because even though the weight of the crown was identical to the weight of the gold that the king gave the crown maker, the volume was different due the various densities of the metals. This led to what we now know as Archimedes Principle. Relaxation is known to enhance creativity. For example, progressive muscle relaxation has been associated with reductions in heart rate, anxiety, and perceived stress. Relaxed states have been shown to foster thought processes important for creativity. Further, stress – the opposite of relaxation – is known to kill nerve cells in the hippocampus, an area of the brain where new memories are formed. These new memories help us make connections with other things known, fueling the creative process. So, take a break. Create a relaxed state for yourself, by deep breathing, stretching, going for a walk, whatever works for you. Once relaxed, you might find a creative answer to a problem that eluded you! Interested in Learning more about the topics, here are a few links to relevant researches and studies conducted: The Creative Mind in Daily Life: How Cognitive and Affective Experiences Relate to Creative Thinking and Behavior Creativity and the Brain: An Editorial Introduction to the Special Issue on the Neuroscience of Creativity The creative mind: cognition, society and culture Conclusion Everybody is creative, and it is a universal trait that can be developed and fostered in each individual. Creativity is an intricate playing of mindset, environment, and brain processes that will help people produce new ideas and offer innovative solutions. Some ways to improve creativity are through curiosity, patience in practice, and detachment to relaxation. There is no act of creation out of nothing in the concept of creativity. On the contrary, it is piecing together elements that already exist around us into new and valuable ways. Key Learnings Interplay of brain networks:  The underlying mechanism of creativity is the interplay of different brain networks—the default, salience, and executive networks—activating in a sequence to generate and review an idea. Role of mindset:  One needs a creative mindset characterized by openness to experience and connecting seemingly irrelevant things to foster creativity. Environmental Influence:  The environment and past knowledge have a significant contribution to creativity in that new ideas are usually built or inspired by existing material. Patience and Relaxation:  Allowing some time for ideas to incubate and keeping calm can greatly enhance creativity and solve a lot of problems. Curiosity as a Driver:  The cultivation of curiosity and the will to search, explore, and learn about various subjects can help stimulate creative thinking and lead to innovative solutions.

January 6, 2025, Financial Inclusion is an innovative concept, and its central role has been widely recognized by world leaders and policymakers since it is closely interrelated with the more general notions of inclusive economic growth and sustainable development, as highlighted in the 2015 United Nations Global Sustainable Development Report. The commitment to ‘leave no-one behind’ is one of the core targets in the post-2015 Millennium Development Goals Framework of the 2030 Agenda to promote a broader access and usage of financial services. Indeed, when access to finance and the available range of services are limited, many individuals, families and firms are not likely to gain from financial development, leaving much of the population in absolute poverty. Any growth strategy that does not pay attention to inclusive growth is not holistic and sustainable. Inclusive growth is the only mantra to ensure market enlargement as nearly 73% of the rural households remain unbanked by the Banking system. Financial inclusion in India An inclusive financial system facilitates efficient allocation of productive resources and thus can potentially reduce the cost of capital. Access to appropriate financial services can significantly improve the day-to-day management of finances (bill payment, money transfer etc.). Also, inclusion into financial system protect unbanked people from informal sources of credit, who charge higher interest rates and often resort to unethical/harsh recovery practices. A bank account can also provide a passport to wide ranging financial services such as overdraft facilities, debit card and credit cards. A number of financial services, such as insurance and pension, necessarily require access to a bank account. Thus, an inclusive financial system enhances efficiency and welfare of a society. Challenges in Expanding Financial Inclusion in Rural India: Barriers to Accessing Formal Credit Systems Financial inclusion also benefits society more broadly. Shifting payments from cash into accounts allows for more efficient and more transparent payments from governments or business to individuals- and from individuals to government or business. Although no conclusive evidence exists at this point, access to the formal financial system and appropriate credit can potentially facilitate investments in education and business opportunities that could, in the long term, boost economic growth and productivity. The NSSO survey indicates that nearly 27% of the rural households have access to the formal credit system and 22% under informal credit system. In spite of the above-mentioned initiatives by Government of India to enhance the outreach of the formal credit system, there is still 73% of the rural households do not have access to formal credit system. This is mainly because of the following dimensions: Majority of rural population reside in small villages which are far away from the branches, Non familiarity with the systems and procedures; multiple visits to bank branches for securing a loan and inadequacy of local transport systems etc. High Transaction cost to the customer in terms of time and money Bankers shy away as their transaction cost is very high to deal with such costumers as they have to spend a lot of time for these customers; the loan amount is small and the population to be handled is large, etc. Challenges to Financial Inclusion There are many challenges faced by banks in India on financial inclusion process. a) Penetration of bank branches into rural areas is difficult as they are unviable, saturated and having higher transaction cost. The villages are fragmented limiting the scale of operation of banks in rural areas. This necessitates last mile of financial inclusion to be met with a combination of agents and providers through technology leverage. b) The present Business Correspondent (BC) model is too restrictive, cash delivery points area too modest and the ideal financial inclusion model is yet to evolve in the country. c) The robust financial inclusion model requires comprehensive participation of all stakeholders which is currently lacking in the country. Financial inclusion among urban poor warrants an alternate strategy as the physical access is not the critical issue here. d) The pricing of financial assets and services is delicate in urban areas as it should ensure the poor are able to afford them at these prices. e) Also, urban poor, particularly the slum dwellers suffer from identification problems as they are frequently moving from one part of the city to another or from one city to another. f) Lack of financial literacy among the urban poor or lack of marketing of financial instruments to the urban poor lead to limited awareness of financial portfolios by these people. g) Sometimes there is a self-exclusion by the poor from the formal system as they are heavily dependent on the informal credit sources which cater according to their convenience. What are the Perspectives on Financial Inclusion? Inclusive Growth and Financial Inclusion: Pillars for Sustainable Economic Development Economic growth in India has to be inclusive in order to make it sustainable. Inclusiveness is an essential element in a democracy. If policies that bring about economic growth do not benefit the people in a wide and inclusive manner, they will not be sustainable. Equally, inclusive growth is essential to grow the market size, which alone will sustain growth momentum. Inclusive growth is the only just and equitable way that any society can grow. Financial Inclusion rests on three pillars viz, access to financial services, affordability of such services and actual utilization of such services. Financial Inclusion can be achieved only if all the three pillars show affirmative results. It may prove to be very useful for the banking Industry and the overall Indian economy. It will be useful for policy makers, academicians and researchers in the field. Specific focus on financial inclusion commenced in India when the Reserve Bank advised banks to make available a basic banking ‘no-frills’ accounts with low or ‘nil’ minimum balance as well as charges, with a view to expanding the outreach of such accounts. In such accounts, banks are required to make available all printed material used by retail customers in the regional language concerned. In order to ensure that persons belonging to low-income groups, both in the urban and rural areas do not encounter difficulties in opening bank accounts, the know your customer (KYC) procedure for opening accounts has been simplified. Besides the Kisan Credit  Cards (KCCs), banks have been asked to consider introduction of a General-purpose Credit Card(GCC) facility at their rural and semi urban branches. This facility is in the nature of revolving credit, which entitles the holder to withdraw up to the limit sanctioned. Based on assessment of household cash flows, limits are sanctioned without insistence on security or purpose. Interest rate on the facility is completely deregulated. Fifty  per cent of GCC loans can be treated as priority sector lending. Despite the difficulties faced by banks to expand their operations in the rural areas, RBI is seized with the idea of issuing fresh banking licenses to private players with the intension of improving financial inclusion indicators. The idea behind this thinking is that country’s credit – GDP ratio is about 50 percent which warrants expansion of banking networks. But this expansion should be directed towards the coverage of unbanked/ under banked/ excluded sections in rural area. To fully realize the benefits of financial inclusion then, financial products first and foremost need to be tailored to the needs of people to be relevant and make a difference in their financial lives. This also includes customer education and protection to build and ensure trust in the formal financial system. Building a Robust Financial Infrastructure: Innovation, Alternative Credit Scoring, and Fintech Solutions On a more fundamental levels, realizing the benefits of financial inclusion depends on an adequate financial infrastructure and a regulatory environment that is conducive to innovation, making small financial transactions economically viable and ensuring a safe, stable, and reliable financial system. Traditional credit scoring metrics may alienate or discriminate against those with limited credit history. Financial inclusion strives to explore alternative credit scoring methods that consider non-traditional data sources can extend credit access to those with limited credit history. Fintech lending platforms connect borrowers and lenders directly through online platforms. Borrowers can apply for loans, and lenders can assess their credit worthiness based on data analytics and alternative credit scoring. This streamlines the lending process and extends credit access to individuals and businesses underserved by traditional banks or those who would have otherwise been excluded from securing traditional credit. Innovative Approaches and Tools for Expanding Financial Access According to Women’s World Banking, 31% of women are more likely than men to have an inactive bank account. But focusing on gender-specific financial inclusion can help empower women economically and close the gender gap in financial services. Financial education and financial literacy refers to providing financial education and programs that equip individuals with essential financial knowledge and skills. This empowers them to make informed decisions, budget effectively, and understand the benefits of using formal financial services instead of relying on informal or informal or potentially exploitative alternatives. While regulators in certain markets have required banks to offer basic accounts, simplify onerous documentation or allow correspondent banking (e.g. by post or phone), such measures do not always deliver desired results. Banks must structure highly relevant and possibly simplified financial solutions that meet specific customer needs at an affordable cost. Digital channels have been instrumental in helping providers overcome challenges related to infrastructure and geography in many developing countries. While digital channels may have the lowest operational costs, effective financial inclusion will likely require a “ bricks and clicks” distribution model that includes physical branches to build trust and confidence. Expanding Financial Access through Agent Banking, Mobile Banking, and Microfinance Institutions Agent Banking- Post Offices in India can play an important role in providing banking services to rural areas in view of the low-bank penetration, credit needs of workers, and wide-occupational, income and educational variations found in villages. India Post has the largest postal network in the world with 155,000 post offices 139,000 of which are in rural areas. Mobile banking is considered the next big step in banking expansion particularly in the rural sectors. Mobile banking provides a banking interface at low transaction cost using technology. Cost of an ATM transaction cost using technology. The cost of an ATM transaction is five times that of a M-banking transactions and transactions at a bank branch is almost 15 times more expensive. Micro Finance Institutions: Based on the success of Grameen Bank in Bangladesh, large number of micro finance institutions have emerged in India to provide credit and financial products to marginalized sections of the society. The network of MFIs needs to be expanded. Enhancing MSME Support through Credit Guarantees, Financial Literacy, and Localized Banking Initiatives Credit Guarantee through SIDBI for MSME: Similar measures have been taken to setup credit to the micro, small and medium enterprises (MSME) sector. The Government operates a credit guarantee scheme through SIDBI for providing credit guarantee scheme through SIDBI for providing credit guarantee to banks for their loans to MSME so that they can give such loans based on the viability of the project and not insist on collateral. The guaranteed premium has been reduced and coverage increased for smaller loans and backwards areas. Credit rating by SIDBI at concessional rates and putting in place of a comprehensive credit information system for this sector will go a long way in better credit allocation and pricing. Credit counselling services in addition to financial literacy and financial education are being perceived as important tools to enable people to overcome the problem of indebtedness and seek re-access to banking system. It is equally important for banks to strengthen their functioning at the local level for meeting developmental objectives of the Government. The various fora under the Lead Bank Scheme have been very useful in sorting out manual coordination issues. RBI plays a catalytic, as well as a coordinating role, in these initiatives for enhancing co-operation between the States and the banking systems. The Future of Financial Inclusion: Trends, Challenges, and Strategic Opportunities The future of financial inclusion is likely to be shaped by advancements in fintech, such as artificial intelligence, blockchain, and digital currencies. Additionally, greater emphasis on data privacy and security, along with regulatory developments, will influence the trajectory of financial inclusion initiatives worldwide. Conclusion Financial inclusion means that adults have access to and can effectively use a range of appropriate financial services. Such services must be provided responsibly and safely to the consumer and sustainably to the provider in a well- regulated environment. At its most basic level, financial inclusion starts with having a deposit or transaction accounts at a bank or other financial institutional or through a mobile money service provider, which can be used to make and receive payments and to store or save money. The Purpose of financial inclusion is to provide equitable opportunities to every individual, including those who are marginalized, by accessing formal financial channels in order to get affordable and suitable services for better life and better income. In the light of the implications that inclusive finance has on people’s standard of living and macroeconomic growth, governments around the world are increasingly viewing financial inclusion as essential to economic and social development. As the economy began to grow at higher rates, the regional and societal disparities call for new strategies to ensure that the banking system meets the requirements of inclusive growth. Such strategies need to be fashioned in a manner that they do not undermine the stability and efficiency of the financial system. There has never been a better time to seek revenue growth through financial inclusion. Banks that seize this opportunity today- and are able to customize offerings strategically, take advantage of innovative channels and mitigate risk creatively-will be well positioned to capture market share and play a transformative role in the growth of emerging market for years to come. Accordingly, over the last few years or so, several measures have been taken by the Reserve Bank and Government of India to ensure better banking penetration and outreach, particularly that the credit needs of agriculture and small enterprises are met while allowing sufficient flexibility to each bank to evolve its own policies and strategies for the purpose. References: http://documents.worldbank.org./en/publications/ducuments-financial-inclusion-and-inclusive-growth. http://researchadvances.org/index.php/RAJMSS/article/view/768 Beek Thorsten and Asli Demirguc-Kunt. (2008). “Access to finance: An Unfinished Agenda.” The World Bank Economic Review 22(3): 383-396. Clarke, G., C. Xu, and H. Zou. 2006. “Finance and Inequality: What Do the Data Tell Us?” Southern Economic journal 72(3): 578-96. Dupas, P., D. Karlan, J.Robinson , and D Ubfal, 2016, “Banking the Unbanked? Evidence from Three Countries”. NBER Working Paper No. 22463. Kochar, A., 2011. “The Distributive Consequences of Social Banking: A Microempirical Analysis of the Indian Experience.” Economic Development and Cultural change, 59:2, 251-280.  

January 6, 2025, The BFSI (Full form – Banking, Financial Services, and Insurance) industry plays a very crucial role in transforming the economic landscape of nations around the world. With this sector heading into 2025 and beyond, changes will come with the support of technology, regulatory changes, and shifting consumer expectations. This has enormous implications for professionals, investors, and consumers alike in understanding and effectively engaging with this dynamic environment.  Did you know? The BFSI sector covers all aspects, from conventional banking to blockchain and artificial intelligence, as well as new-age technologies and financial technology companies, thereby revolutionizing financial services from its very core. As we discuss the top trends shaping the BFSI sector in 2025 and beyond, it is first important to note the multifaceted factors that contribute to these changes. Some of the key trends which will change the landscape of the sector are listed below: 1. Digital Transformation and Fintech Integration The BFSI industry is rapidly integrating fintech solutions in order to better service delivery and operational efficiencies. Trends such as these highlight the continued digital transformation that has caused traditional banks to make arrangements with fintech companies so as to provide more innovative financial solutions to clients. The cases start with mobile banking applications and then through blockchain technology to offer smooth and safe services to customers. 2. AI and Machine Learning Adoption AI and machine learning are transforming the BFSI industry, allowing an institution to get insights into humongous data within a very short span of time. Such technologies allow credit scoring, fraud detection, and risk assessment, thereby making the operations more efficient and reliable. This phenomenon will transform the way institutions will operate and decide in 2025. 3. Blockchain Technology Blockchain technology will proliferate in the BFSI sector through the empowerment of transaction transparency and security. By 2025, cross-border payments, smart contracts, and identity verification security will widely witness blockchain usage. This technology promotes operational efficiency while minimizing fraud and operational risks. 4. Cybersecurity and Risk Management As digital channels keep on multiplying, so do the cyber threats that create risks. In the BFSI sector, safety measures regarding cybersecurity will be at the topmost by 2025 because this sector is very sensitive to the proper use of customer information and always keeps it protected. Key investments in advanced security technologies and risk management frameworks will be required to safeguard assets and ensure regulatory compliance. 5. Data Analytics for Personalization Data analytics is at the heart of personalization in the BFSI sector. The institute uses big data to understand exactly what their customers do, what they want, and how much or little they require in finance. This trend would further use tailored marketing strategies with a focus on customised financial products, thus improving the experience of the customer and creating loyalty. 6. Customer Experience Focus Coming with a rise in digital banking, now customer experience is on the front. Banking institutions start to use data analytics and client's feedback to tailor their services and, as a result, improve the customer satisfaction level. Some of the key strategies now include AI-driven support options through chatbots and customised advice on financial matters related to the specific spending of the customers. 7. Financial Inclusion  Increasing demand for financial services would most definitely ensure that people gain access to banking at an enhanced level, thereby ensuring a higher level of financial inclusion is maintained. Keeping financial inclusion at its core, there is an immense requirement for the welfare of the governments and organisations across the world. The BFSI sector is making best use of the power of technology to reach out to those unbanked populations, connecting them to fundamental services that allow them to access finance. Mobile banking and microfinance are regarded some of the most critical initiatives aimed at enhancing financial literacy and economic empowerment across developing regions. 8. Neo-Banks Neo-banks are the trend of digital-only banks without physical branches. They serve the most tech-savvy customers with mobile banking solutions. They charge lower fees and innovative features that appeal to the younger demographic. As market share continues to grow, traditional banks will be challenged to alter their competitive viewpoint. 9. Regulatory Changes and Compliance The BFSI sector is strictly governed by strong regulatory frameworks, and 2025 will be characterized by the adoption of more stringent measures of compliance. For institutions, this will mean the adaptation to new regulations aimed at enhancing transparency and customer protection. These regulations are a key learning need for professionals working in the sector for compliance and risk minimization purposes. 10. Sustainable Finance Growing emphasis on sustainable finance stems from stakeholder awareness of ESG. Increasingly, more financial institutions will make investment and product choices with considerations of a greater number of ESG factors. It is reflective of the overall trend towards sustainability and ethical investing in society that significantly goes beyond affecting consumer behavior to affect corporate strategy. 11. Remote Work and Hybrid Models The pandemic has catalysed a shift towards work from home in the BFSI industry. Hybrid work models most likely dominate 2025 and then attract talent from anywhere in the world into institutions. Internal workplace policies and investments in technology need to be reassessed here to build on and retain productivity through remote collaboration. 12. Better Training and Development Programs Organisations will continue to invest in training and development programs for their workforce to keep up with the ever-changing BFSI landscape. Enclosing the skills of employees in emerging technologies, regulatory changes, and customer service strategies will remain at the forefront of competitiveness and innovation drivers. Role of Technology in Re-Shaping the BFSI Sector Technology is the backbone of BFSI evolution. It has automated routine jobs, as well as fortified security measures, to transform the delivery of financial services. Ahead of us in 2025 will be various technologies-the AI, machine learning, and blockchain-continuing to drive efficiency and innovation, thus better equipping the financial institutions putting these to work with regard to meeting customer expectations in the rapidly changing environment. Do You Know? Most traditional banks invest heavily into technology startups these days to stay ahead of the fintech curve which is constantly changing. This shows just how innovative the BFSI sector has become. What Are the Three Challenges That the BFSI Industry Will Experience in 2025? New trends in the BFSI sector will mean their adoption but also challenges that would come with them, including regulatory compliance, threats from cyber-attacks, as well as increasing competition from fintech firms. To adapt to these challenges requires an agile and proactive approach in the risk management structures. How will Consumer Expectations Change? Consumer expectations are always changing with relentless pressure of technological advancement as well as increased access to information. For the year 2025, customers will look for more personal and seamless experiences from financial institutions; hence, it will continue to nourish innovation in the organisations. What Skills Will Become the Most Critical for BFSI Professionals? To keep up with this industry evolution, professionals will require new skill sets to stay ahead. Data analytics, technology management, and customer relationship management must be implemented in the journey for successful success within the BFSI segment.  How AITD Can Help? Amity Institute of Training and Development (AITD) looks at equipping professionals within the BFSI industry (Provides bespoke BFSI Courses) with the skills and knowledge in a rapidly changing environment. AITD will be providing tailor-made training programs targeting financial management, risk assessment, and regulatory compliance. These are designed to prepare for the challenges and opportunities lying ahead in the BFSI sector. Our programs are focused on the following: Building Digital Payment Interfaces Data Security and Data Breach in Banking Industry Credit Risk Management Program Program on Foreign Trade NPA Management Program Induction Program for New Hires Behavioral Training Finacle First time Managers/Branch Managers Core Banking System Business Ethics and Corporate Governance Interested in Learning more about the topics, here are a few links to relevant researches and studies conducted: BANKING AND FINANCIAL SERVICES INDUSTRY(BFSI) TRENDS IN 2023 AND BEYOND: EXCERPTS FROM LITERATURE From potential to performance by design, Banking, Financial Services & Insurance Report BFSI Industry – A Future Skills Perspective Final Thoughts on Trends in the BFSI BFSI is in a revolution spree, changing towards emerging trends in technology, consumer behavior, and regulatory frameworks. Understanding such trends is crucial for professionals who want to navigate such a dynamic landscape well. And to thrive, success within the changeable BFSI sector into 2025 and beyond will rely on being well-informed and proactive. Did You Know? The incorporation of AI in the BFSI Industry could help in better working operation by automation of routine work and professionals may invest their time on a higher strategic approach.

November 26, 2024, The BFSI sector is one of the sectors that have always been at the forefront in terms of technological disruption. AI is no exception. It has brought revolution within the industry as it changes the BFSI way of doing things as well as optimizes their internal processes while improving the customer experience. In this very long article, we will dig deeper to understand how AI impacts the BFSI sector and what the benefits are. Did You Know? AI has been in use even from the 1980s in the BFSI industry. Most of its adoption was for the sake of fraud detection and credit scoring; now, however, it really picks up a lot of applications. Impact of AI in the BFSI Industry AI has penetrated all the possible facets of the BFSI domain, that is, from customer service to risk management. An important effect of AI has been in the analysis of humongous data sets and extracting important insights. The algorithms of AI enable banks and financial institutions to make decisions on patterns and anomalies emerging from the data-driven insights. AI is also changing the interface between banks and their customers. Chatbots and virtual assistants, again driven by AI, have now pervaded the BFSI space. They allow for 24/7 customer support along with recommendations. AI can take care of the most varied inquiries a customer makes-from account balances to loan applications-with human employees being able to focus on more complex work. But, above all these, AI is transforming the entire lending process in the BFSI sector. Based on an individual's credit history, income, and spending habits, AI algorithms can measure creditworthiness far better than the conventional methods. This reduces default risk significantly but also empowers banks to provide loan products more customized to the customer's needs. Why AI is Critical to Fraud Detection and Cybersecurity Data security and fraud prevention are key, important elements of the BFSI industry. In this regard, AI emerges as an important tool because it has the capability to detect and prevent fraud in a real-time manner by analyzing transactions, identifying suspicious transactions, and raising an alert to the concerned authorities, minimizing financial loss and loss of customer trust. Beyond fraud detection, AI has been a game-changer for the BFSI segment in strengthening security. The AI-powered algorithms quickly and efficiently detect cyber threats that could not be traced by traditional forms of security. AI-powered cybersecurity systems continuously monitor network traffic and become sensitive to weaknesses, allowing banks and financial institutions to stay one step ahead of cyber thieves. How AI is Revolutionizing Risk Management in the BFSI Industry One of the very important applications in the BFSI sector is the space of risk management. AI is enriching the precision and speed of the process through in-depth analysis of enormous historic data and market trends that enable prospective risks to be identified and thus mitigation strategies to be devised. This besides reducing financial loss also minimizes blunders and resources for better exploitation. AI is also transforming the way portfolios are operated in banks and other financial services institutions. AI algorithms can find trends in markets and behavior of customers and eventually look out for potential investment opportunities while optimizing the performance of a given portfolio. This may position the banks and financial services institution in a better position compared to its competitors as it assures greater value-added services to the customers. What is the Future of BFSI with AI? However, with such further advancement and sophistication in AI, the impact would be even more tremendous for the BFSI industry. For example, in the near future, we may have to experience a large spectrum of applications that range from usage of AI-powers technologies-for example, customized financial planning and automated trading. The first sector where AI will surely make its mark is in the domain of wealth management. The personal financial goals, risk tolerance, and investment preferences of an individual can be worked upon by AI algorithms to develop suitable strategies and make recommendations. This will optimize investment returns for wealth managers as well as allow for providing value-added services to clients. How AITD Can Help? Amity Institute of Training and Development (AITD) offers specialized bespoke courses to equip the professionals with knowledge and skills required to thrive in BFSI Industry. We tailor programs for financial management, risk assessments, and regulatory compliance for them, thereby making us a very important partner for anyone willing to advance in such a career path. Our programs are focused on the following: Building Digital Payment Interfaces Data Security and Data Breach in Banking Industry Credit Risk Management Program Program on Foreign Trade NPA Management Program Induction Program for New Hires Behavioral Training Finacle First time Managers/Branch Managers Core Banking System Business Ethics and Corporate Governance Interested in Learning more about the topics, here are a few links to relevant researches and studies conducted: BANKING AND FINANCIAL SERVICES INDUSTRY(BFSI) TRENDS IN 2023 AND BEYOND: EXCERPTS FROM LITERATURE From potential to performance by design, Banking, Financial Services & Insurance Report BFSI Industry – A Future Skills Perspective Final Thoughts on The Impact of AI on BFSI The impact that AI will have on the BFSI industry is nothing short of revolutionary. From bettering customer experience to changing the internal process, AI will be transformative in how banks and financial institutions are run. With this trend having the potential to continue, AI will make an even bigger mark on the BFSI industry going forward.

November 26, 2024, The BFSI sector is regarded as one of the most tightly regulated sectors around the world, encompassing banking, financial services, and insurance. Regulation performs an important function in safeguarding the integrity of financial institutions as well as ensuring that the interests of customers in the BFSI industry are being safeguarded. So, what all is included in the BFSI sector one may wonder… The BFSI sector includes banking institutions, financial services such as asset management and wealth management, payment processing, and insurance companies. This sector will greatly be playing its part in every economy by churning out the required financial services and products that the individual and the businesses require to sustain in the economy. Consequently, as integration in the global finance sector increases and with awareness regarding the peril of cyber security growing, regulation over the BFSI is further progressed. With the year going towards its end and changing over into 2024, it is essential that professionals working with BFSI update themselves about the changes in regulatory trends so that organizations do not fall behind but remain compliant and competing all the way. Did you know? Financial regulations contribute to stability in a market, protection of customers from fraud, and even advance the risk management of financial institutions. The Banking Regulation Act: The Critical Support Pillar The Banking Regulation Act, enacted in the year 1949, is the foremost legislation of banking in India. This act grants to the RBI regulatory powers to oversee and supervise banking institutions. This act enunciates the rules and regulations for banking activities, licensing, and operations in a manner that ensures transparency, solvency, and the security of public deposits. Significant aspects of the Banking Regulation Act Issue of banking licenses. Regulation of shareholding and voting rights in banks. Providing guidance on auditing and reporting of banking institutions. Effecting the mergers and liquidations of banking institutions. The Act has undergone a series of amendments to align with the changing needs of the bank industry, especially towards recent updates on issues concerning non-performing assets (NPAs) and corporate governance of banks. Top 10 Regulatory Trends in the BFSI Sector Strengthening Cybersecurity Regulation  With diversified digital services offered by financial institutions, cybersecurity has always been at the forefront. Regulation bodies are increasingly insisting on strong rules and guidelines to ensure that the data of customers is safe and online banking transactions secure. BFSI organizations need to review the risks and cybersecurity frameworks from time to time to create defence mechanisms against emerging cyber threats. Data Privacy Compliance The rampant collection of private data has seen regulations like the GDPR in Europe and India's Data Protection Bill give direction on how financial institutions collect, retain, and administer customer data. BFSI companies are now bound to collect, process, and store data on individuals considering privacy regulation developed to be very stringent in nature. Non-compliance would attract heavy penalties and a considerable reputational cost. Open Banking Regulations Open banking has changed the face of the banking industry by allowing third-party service providers to access consumer banking data through APIs. Regulatory frameworks have been developed to ensure that open banking practices remain secure, thus protecting consumers' financial information. This would also pave the way for fair competition as fintech firms develop innovative solutions for customers. Environmental, Social, and Governance (ESG) Compliance  The increase in sustainability consciousness around the world has increased regulations forcing financial institutions to adopt business operations that take into consideration environmental, social, and governance factors. Regulatory authorities are demanding sustainable practices from organizations and asking them to report on sustainability initiatives, lower carbon footprints, and responsibly invest in green finance. Consumer Protection Laws  Consumer protection has also come out as a focus of financial regulation. In recent trends, there is regulation of enforcing transparency in loan agreements, fees, and charges. Regulation bodies also focus on mis-selling of financial products and proper financial education given to customers by institutions. Banking Regulatory Reporting Financial institutions have the responsibility of making detailed reports on their health at financial, risk management, and operational performance to respective authorities. It is through such reports that allow the authority to get an overview of the monetary stability of the institution and act based on such information. It is expected that come 2024, pressure on accurate timely reporting will intensify. Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) Regulations AML/CTF Regulations The regulators are still very interested in the AML and CTF policies that help smoothen the way for the prevention of illegal activities in the financial system. BFSI organizations have to implement basic, stringent, and robust KYC protocols, reporting of suspicious activities, and strict monitoring practices. Digital Lending Regulations  The digital lending platforms should be operated within the confines of regulatory authorities to ensure that they continue operating ethically and in an openly transparent manner. New regulations are being introduced to reign in interest rates and fees and lending terms being charged to increase protection of borrowers along with fair lending practices. Risk Management and Capital Adequacy Regulations Capital adequacy and risk management regulations have become more stringent post the 2008 financial crisis. Strengthening guidelines of the Basel Committee, the regulatory bodies have made the capital requirements for the banks rise higher with implementation across the globe and in India. Thus, preparing the banks from shocks. Cross-Border Compliance  As the BFSI industry has become more borderless, compliance takes the form of international financial reporting standards (IFRS) and regulations for cross-border data sharing. Therefore, institutions in the BFSI sector have to comply not only with norms at home but also around the world. Role of Regulatory Bodies in India India has a complex banking and financial environment under the control of multiple regulatory bodies. Some of the most significant banking regulatory bodies in India include: LogoRegulatory AuthorityDescriptionReserve Bank of India (RBI)Central regulatory authority for banks and financial institutions.Securities and Exchange Board of India (SEBI)Regulates securities markets and protects consumer interests.Insurance Regulatory and Development Authority of India (IRDAI)Oversees the insurance sector in India.Pension Fund Regulatory and Development Authority (PFRDA)Manages pension funds and policies in India. These governing bodies ensure that the financial institutions operate within the purview of the law and protect the interest of the customers and also help to ensure financial stability. Do you know? RBI originates from the year 1935, while its principal work involves control of banknote issue and holds reserves and to operate the credit and currency system of the country. What does Compliance in BFSI mean? Adherence of financial institutions towards various regulatory requirements by the governing bodies is termed BFSI compliance. This encompasses anti-money laundering regulations, data privacy laws, capital adequacy norms, as well as cybersecurity guidelines. Dedicated compliance teams need to be in place within BFSI organizations to ensure that all regulatory standards are being met. Which are the major regulatory requirements by BFSI Organizations? BFSI organizations are under strict compliance regulations. Some of the requirements include capital adequacy, regulatory requirements for banking, liquidity management, and operational risk. A few of the things they have to comply with are consumer protection and data privacy guidelines, along with a thorough understanding of corporate governance limits that would prove these organizations operate ethically and transparently. How AITD Can Help? Amity Institute of Training and Development (AITD) has developed a number of specialized training programs designed to update BFSI professionals with the latest trends in regulatory necessities. With knowledge on Banking Regulation Act, mastering BFSI compliance, and far more, AITD readies professionals to meet the highly dynamic changes taking place in the regulatory landscape. Tailor-made courses are available for this modern day BFSI workforce from topics like financial management, risk assessment, regulatory reporting, etc. Our programs are focused on the following: Building Digital Payment Interfaces Data Security and Data Breach in Banking Industry Credit Risk Management Program Program on Foreign Trade NPA Management Program Induction Program for New Hires Behavioral Training Finacle First time Managers/Branch Managers Core Banking System Business Ethics and Corporate Governance Interested in Learning more about the topics, here are a few links to relevant researches and studies conducted: BANKING AND FINANCIAL SERVICES INDUSTRY(BFSI) TRENDS IN 2023 AND BEYOND: EXCERPTS FROM LITERATURE From potential to performance by design, Banking, Financial Services & Insurance Report BFSI Industry – A Future Skills Perspective Final Thoughts on Regulatory Trends in the BFSI Industry BFSI, today, is witnessing tremendous changes from the advancement of technology to customer demand and regulations. By 2024 and onwards, therefore, for BFSI professionals, it's only mandatory to be one step ahead of the regulatory curve so that, in terms of compliance, the organizations they work for are way ahead in the game. Understanding key shifts like cybersecurity measures, ESG compliance and new consumer laws can thus navigate some of the complications of the financial landscape. Did you know?  The new banking regulations keep coming in to avoid financial crises and safe-guard the economy. Therefore, it is crucial that the professionals of the BFSI sector also update themselves on the same.

January 6, 2025, Professional communication skills make a difference in today's modern, fast-moving time in the business world while working up the career progression. Effective communication will help sets of people work cohesively as a team, establish relationships with clients, and build productivity. Now we're going to do some very down-to-earth, real-world ways to bump your career up a notch. You'll find out how to develop verbal and non-verbal skills to listen effectively, and finally adjust/be adaptable-all those little tips that will make you much more confident, engaging and overall more persuasive at work. This blog will explore 10 professional tips on how to improve one's communication skills. It draws together some ideas from leading professional courses and training programs in the area of communications. Key Takeaways 1. Effective communication takes place in the form of talking, writing, non-verbal cues, listening, and analyzing situations. 2. Better Communication by interacting with Audience, Clarity on throughs , Face-to-Face Discussion. 3. Effective communication within a project can boost the success rate as high as 20% while the collaboration goes up by approximately 15%. 4. Non-verbal cues and feedback increase communication by 25% and 30%, respectively. 5. Poor communication in the workplace costs US businesses $1.2 trillion every year. Fewer than 13% of leaders communicate effectively (Source:forbes) What are Professional Communication Skills? Professional communication skills are the abilities required in the workplace to effectively convey information, ideas, and messages. These skills are essentially very different. Writing skills, just like in emails and reports, are essential in the workplace. Communication is considered the top skill that would bring in performance at the workplace. The Importance of Professional Communication It is said that communication skills form the core of today's fast-moving world in business. Emotional intelligence is the key to having hard conversations and it will have emotional relations. Networking becomes crucial today in the building of key liaison connections. Good communication also facilitates the high posting of relationships and their nourishment in the field. Speaking assists people in communicating clearly, emphatically, and professionally with clients, which helps build trust, understanding, and rapport. It helps develop long-lasting relations, delights clients, and advances the business with more work. Good communication, on the other hand, in team settings will bind the team together, foster teamwork, and help all of them work for common goals. Only those leaders who can easily define goals, expectations, and feedback will really understand how to get teams working together to bring better productivity and build a place where innovation is thriving and successful. "The single biggest problem in communication is the illusion that it has taken place." George Bernard Shaw LATEST FACT: As per the National Association of Colleges and Employers, in 2022, 80% of employers rated communication skills as the most required element when it comes to freshers graduated from college. (Source:communicationguru) DO YOU KNOW :Employers of all types report that effective communication skills are what they look for most in their job candidates.. (Source:communicationguru)  This graph indicates the percentage improvement in professional success due to different communication skills; the highest rated were 'Know Your Audience' and 'Practice Active Listening'. 10 Tips to Improve Professional Communication Skills Improving your professional communication skills is key to doing well at work. 1. Be Clear About Your Purpose Be quite sure of what you desire to say before you say it. What do you want to tell your readers, listeners, or viewers? What would you want them to know, feel, or act on? Reorganize your communication so that it meets this objective—making sure every point you make contributes towards this end. 2. Use Easy, Simple Language No jargons, technical words, and complicating matters Use the words which are easily understandable for your readers. Be brief and get straight to your point. 3. Active listening Listen to the speaker. Never interrupt and don't prepare your response to what they are saying. Ask questions to check you're getting their message. Repeat in your words what you heard to check that you've understood.  (Source:Dan Brodnitz) 4. Pay Attention to Nonverbal Cues  Everything that you do comes under body language, your voice, your facial expressions—that speaks everything. Be able to identify your non-verbal behavior and what it is possibly communicating. Observe others for non-verbal behavior that picks up feelings and reactions to the message or conversation. 5. Tailor Your Communication Style Everybody is different and has his or her own choice of communication modes. Be sensitive to the audience's needs, personality and recent cultural background. Flexibility—that is, be willing to change and adjust. 6. Organize Your Thoughts. Define clearly what you want to say, or the outline/framework of your message, before you begin. Plan key points to be included in your message and in what order you will present your points. Transitional words that influence your message to the audience. 7. Edit and Proofread Always proofread any written document before clicking that send button. Always check the grammar, spelling, and punctuation carefully. The words to be used in the message should be simple, concise, and free from ambiguity. (Source:simonandsimon) 8. Practice, Practice, Practice The more interaction, the better the performance. Diverse opportunities for practice in front of diverse audiences. There may be times when you would wish to take a communication class or join one of the public speaking groups that exist locally. 9. Seek Feedback Ask colleagues, mentors, or even friends in communication you respect for feedback. Invite feedback to improvise in your interaction with others. Feedback is one of the important ways of finding your learning areas; a continuous process to measure your performance.  (Source:communicationguru) 10. Continuous Learning and Improvement Communication is one learning activity that never stops. Keep oneself updated on best practices, emerging technologies, etc. Read books, journals, and blogs on communications. Attend the workshop, webinar, or training session when informed about the same. According to a research paper by Smith et al. 2023 on "The Role of Effective Communication Skills in Professional Life "it states that developing effective communication skills is one major component for successful professional life. The authors affirm that high-order communication competencies will benefit an individual through the building of strong relationships with other people around them and collaboration well; it brings out ideas clear enough, which increases career advancement and success of an organization. Overcoming Communication Barriers While developing communication skills, look out for the barriers which may stop one from talking well. The key differences are language, culture, conflicts, and feelings.1. Language Barrier: One of the problems which comes up, when there is cross language communication between people.2. Cultural: Different Cultures Can Result in Misunderstandings and Poor Communication.3. Interpersonal Barriers: Broken trust, lack of interest, and disagreement are among the common factors for miscommunication.4. Emotional Factors: If you are angry, frustrated, or feeling anything along those lines, it really brings down the effectiveness of the communication. Be flexible, show some empathy, be open to questions and feedback. This way, you will get confidence to speak up at work and develop strong relations. Final Thoughts on Professional Communication Tips Professional business communications skills are one area that underpins professional success in today's tough, competitive business environment. Good communication is crucial for doing well at work, making things more productive and efficient, reducing conflicts, and improving teamwork.  By focusing on communication, companies can create a positive work environment that boosts productivity and teamwork. Also, using clear language, listening actively, and understanding different cultures are key to professional communication at work.  It is by aligning communication tips with the training philosophy of AITD (Amity Institute of Training & Development) that readers will be empowered with a feasible guide to professional skills in their communication It is by aligning communication tips with the training philosophy of the Amity Institute of Training & Development (AITD) that readers will be empowered with a feasible guide to professional skills in their communication.

September 24, 2024, Positive thinking is about much more than experiencing happiness or feeling positive. It goes further deep into a strong level of optimism and a constructive approach toward life and work. Positive thinking within the workplace can infectiously affect productivity, relationships, and the overall atmosphere in the workplace. This paper explains what positive thinking is, how beneficial it is and in what way it may transform the workplaces into more engaging and successful environments. Did you know?Positive thinking enhances creativity and problem-solving skills by encouraging a more open and flexible mindset. Understanding Positive Thinking: Its Definition and Importance in the Workplace Positive thinking is focusing on the bright side of things in every circumstance. Having a positive attitude means that a person should be hopeful and full of optimism, even if a challenge comes his way. In most cases, the meaning of positive thinking is usually portrayed by a positive attitude. This action impacts your thoughts, behaviours, and how one reacts to situations. Positive Attitudes and Work Environment, The Power of Positive Thinking in the Workplace An optimistic work environment offers many benefits for employees and the organization. Optimistic attitudes towards the workplace can:Create Better Collaboration:  With an optimistic attitude, employees will be able to work together with better collaboration. Boosted Morale:  High gauge job satisfaction and morale. Improved Productivity:  In general, an employee with an optimistic attitude will be more self-motivated and productive. Examples Of Positive Thinking in Action Constructive Feedback:  Feedback has to be constructive to upbuild and polish rather than breaking and condemning. Positive Goal Setting:  Goals set and chased with a positive attitude would lead to better solutions. Resilient:  Taking the problems as motivating, providing a chance to learn and evolve, not as obstacles. Leadership – An Essential Aspect: Positive Thinking in Leadership Leadership is one of the most pivotal tools that can be put in place to develop a culture of positive thinking in the workplace. A leader who thinks positively can stimulate those around him or her also to think with the same mindset. These leaders are in the position of setting organizational tones that largely impact the overall organizational working environment and employees' attitude. Key Leadership Practices for Positive Thinking:Lead by example through actions and decisions that demonstrate positive thinking. Facilitate Open Communication:  Encourages a culture in which employees share their ideas and feedback. Rewarding Successes:  Celebrate and acknowledge success—big or small to enhance motivation. How Can Positive Thinking Improve Employee Well-being? Positive thinking plays a great role in improving employee well-being when it comes to mental and emotional health. It encourages: Few Relevant studies related to the impact of Positive Thinking Positive Psychology at Work: Research and Practice Positive Practices in the Workplace: Impact on Team Climate, Work Engagement, and Task Performance Stress Reduction:  Employees who think positively get a good way to reduce stress and, therefore, avoid burnout, as a result of less stress. Better Relations:  There are better interpersonal relations due to positive thinking, and it cultivates an assisting and cooperative work atmosphere. More Motivation:   A positive attitude can make you more motivated and committed; hence, there is likely to be better performance and more job satisfaction. What Techniques Can Be Implemented to Promote Positive Thinking? There are multiple techniques available that an individual or an organization can adopt for attaining the purpose of positive thinking. Few of the techniques can be briefed as: Mindfulness techniques:  Various kinds of techniques like meditation, deep breathing can be applied to add on to the positivity. Positive statements:  The statements that are positive in nature help to repeat them regularly and, therefore, tend to substantiate positive thinking. Gratitude Journals:  Maintaining a journal to write down what one feels grateful for will bring the focus on what is right in life and work. Did You Know?Positive thinking enhances the immunological functioning of the body and leads to better health overall. How can an Organization Measure the Results of Positive Thinking? The organization's results of positive thinking can be measured through: Employee Engagement Surveys:  Surveying how satisfied and engaged employees are. Performance Metrics:  Measuring their enhanced level of productivity and performance. Measuring Good Health and Well-being:  Stress-related illness and absenteeism are going down. How can AITD Help? Amity Institute of Training and Development (AITD) offers tailor-made programs infused with positive thinking in the workplace. Bespoke Course Advantage: Tailored Learning, AITD does not believe in one glove fitting everyone. It designs courses customized according to your needs. With this technique, the training directly addresses the soft skills most vital to your career or the needs of your team. Personalized Focus:  You can declare the specific soft skills you would like to develop, whether it is communication, leadership, conflict resolution, etc. AITD will tailor a course based on what subjects you declare, therefore maximizing your learning effect. . Interested in Learning more about the topics, here are a few links to relevant researches and studies conducted: The Role of Positive Psychology in Improving Employees’ Performance and Organizational Productivity: An Experimental Study Evaluating Positive Psychology Interventions at Work: a Systematic Review and Meta-Analysis Fostering a Positive Workplace Culture: Impacts on Performance and Agility Did You Know?Positive thoughts result in stress decrease, as they bring about control as well as resilience. Final Words on Positive Thinking and it’s Impacts Numerous studies demonstrate the power of positive thinking to become a game-changer for the workplace — positive attitudes and behaviours can change the very results an organization produces, while improving the lives of the people in it. The leaders set the context for a working atmosphere full of positive thinking and favourable conditions. Such methods as mindfulness, positive affirmations, and gratitude practices are also provided in order to establish a more positive culture. Any organization can achieve these benefits with appropriate support and training. Did you know?The more the organization focuses on positive thinking, better the morale and engagement of employees, the better the situation with customer satisfaction.

October 18, 2024, Agile leadership is the requirement for new managers to succeed in today's dynamic business environment. An agile leader promotes adaptability, collaboration, and continuous improvement amongst teams. Managers, by applying effective agile practices, empower their teams to improve team performance and drive success. Key agile metrics of leadership track effectiveness and adaptability, and core agile development of skills empower teams. Research proves that companies led by agile executives outperform their peers 3.5 times more often. Agile leaders spread leadership among many, giving increasingly important lateral managers roles - such as product owners or scrum masters - significant content and methodological leadership. Agile coaching and workshops can bring in a sea of change in the manager's capabilities.  In this blog, we will see how the adoption of an agile mindset gives you the power to transform your leadership approach and drive sustainable success in your organization. Understanding the Foundations of Agile Leadership Agile Leadership is a management style focused on flexibility, empowerment, and responsiveness to change. Moving away from top-down management styles, the Agile leader is concerned with creating an environment where teams self-organize, innovate, and grow in their work. This would be particularly helpful for new managers who have to lead complex and diverse groups in dynamic settings. (Source: management30) “Agility means you're faster than your competition. Agile time frames are measured in weeks and months, not year”. —Michael Hugos, agile network architect. What is Agile Leadership? Agile is an organizational philosophy built on flexibility, collaboration, and responsiveness. It motivates the leader to offer a working environment where teams will thrive, become innovative, and thus be adaptive to changing circumstances. Agile leaders empower their teams, create a culture of trust, and drive continuous improvement. (Source: McKinsey) Agile Leadership Theory The agile principles and theory take the view that organizations need to respond to the changing market or customer needs. Agile leaders develop a mindset focused on adaptability and innovativeness, with an understanding that traditional hierarchical leadership structures more often than not hinder responsiveness. Adopting agile theory will help the leader in building a culture that aspires to collaboration, learning, and growth. How Does Agile Leadership Differ from Standard Leadership? What differs in Agile stewardship from more conventional approaches is the way long-term planning and decision-making take place. In a more formal approach to leadership, big decisions are made by the "higher-ups", and planning is typically made around a long-term plan that has some sort of distant goal. (Source:linkedin) In contrast, an agile approach to management would be far more holistic, with decision-making done around new issues, new goals, and what is currently going on. This method puts a strong emphasis on culture and community to ensure the involvement of all the organization's members in decision-making—not just a hierarchical approach. The Challenges of COVID-19 further underlined the need for agility. According to a study, 93% of business units that fully transformed into an Agile model outperformed those that were not in this category prior to the current pandemic (Global SAFe Summit, 2020). Measuring Agile Metrics for Leadership Effectiveness The following agile metrics for leadership can be used by organizations to measure the effectiveness of agile Stewardship: Employee Engagement: The employee engagement level metrics explain whether leaders are truly developing a positive work environment or not. The agile principle goes hand in hand with highly engaged workers. Project Success Rates: The success rates of projects can be termed to evaluate how much continous leadership practices have influenced an organization. Agile methodologies commonly produce higher success rates of projects in contrast to traditional approaches. Time to Market: The time taken to launch a product or service in the market itself could be considered to be one measure of the efficiency of agile development. Agile organizations face reduced time frames due to their responsive nature. Team Productivity: It will help in assessing the team's productivity by performance metrics, hence depicting improvement areas in current function while showcasing agile practices. Do You Know? Before the current pandemic, 93 percent of business units that had fully adopted an agile model did better than those that hadn't. Transformative Agile Leadership Practices for Modern Managers 1. Co-Creation and Visioning Agile leaders co-create with their teams a vision and a direction. Through this approach, ownership and commitment are created amongst the people who constitute the working team since all are invited to share ideas on how things can be done better. By asking team members to participate in visioning, agile leaders come up with aligned and motivated teams toward common goals. 2. Facilitation and Support Instead of control, agile leaders provided an environment in which teams could thrive. They provided the support and tools necessary for such individuals to take an innovative program upon themselves in a drive toward independent decisions. It improves not only morale but also engenders accountability and innovation. 3. Encouragement to experiment Agile leaders encourage experimentation, whereby teams try out new ideas and learn from the results. This is an iterative process in search of innovation and resilience while the teams are learning how to move fast due to changing circumstances. 4. Leading by Example Agile leaders lead by example. Living by agile assessment with adaptability and open-mindedness, showing commitment toward continuous improvement tends to inspire similar agile behaviors in teams. Leading by example sets up a feeling for the culture regarding agility within an organization. The Need for Agile Leadership Skills in Today’s Business Landscape To this effect, agile leaders must develop a variety of skills, which include: Adaptability: The leader needs to be adaptive to the environmental situation regarding both strategic and tactical vision.  Emotional Intelligence: Understanding and managing one's own emotions—and others'—with whom the individual interacts, to facilitate collaboration between all parties and earn trust. Communication: Clearly conveying ideas and views to others and encouraging the same in open dialogue. Coaching and Mentoring: Assisting in the growth and agile development of staff through guidance and feedback. Decision Making: Make data-driven decisions based on your insight, supplemented by insights from team members. DO YOU KNOW? According to a new study by Betterworks, agile management supports continuous learning and innovation-oriented settings. This, in essence, compels people to be more engaged and motivated in work. Key Agile management Questions: That Every Leader Should Ask for Continuous Improvement New managers might ask themselves the following questions to accelerate their agile leadership practices: Empowerment: How will I empower my team to own their work? Communication: What will I do to create an open communication and collaboration environment? Safe Environment: How can I contribute to a safe environment for experimentation and learning? Modeling Behaviors: How am I modeling agile leadership behaviors for my team? These key components can help newly minted managers in the leadership development of agile capabilities, which support high-performing teams and organizational success. The above works, studies, and paper discussed to date explain the effective factors in determining agile methodology research conducted by "A Research on Determining Effective Factors in Agile Leadership", by Akkaya, Cavaliere, Aktaş, and Kargın, 2022. Agile leaders Favor Teamwork Flexibility in Adopting Change in Modern Rapid Business Environment: Enhances Employee Engagement and Project Performance which revs up Total Agile Thinking with Innovation and Pliability in Team. How Can New Managers Achieve Success with AITD? At the present times, agile management is a serious business mandate if new managers are to drive success in an organization. Agile leaders emphasize adaptiveness, collaboration, and a focus on people. They drive innovation and foster continuous improvement in the work culture. In adopting agile management practices, new managers can empower their teams, increase productivity, and feel more confident about embracing change. Amity Institute of Training and Development (AITD) identifies agile development as important for a new manager and offers a line of agile leadership workshops and coaching to help in the acquisition of skills and mindset. In workshops on agile framework under the key themes, AITD defines and explains the Agile leader and Agile leadership practices, and agile leadership theory. 1. Agile management Skills and Behaviors AITD develops some agile management skills in managers, which involve adaptability, emotional intelligence, and communication. New managers exercise these capabilities when wading through complexities and forming collaborative teams. 2. Agile coaching and leadership development  Through one-on-one coaching, AITD will help fine-tune the practice of agile among leaders in order for them to support further growth and innovation of teams. Such agile coaching deals with real applications of agile theory. 3. Agile mindset and assessment of leadership AITD fosters an agile mindset in the background of continued learning and resilience. It helps leaders recognize their areas of strengths and weaknesses so that their efforts are aligned with agile values. Agile management workshops at AITD provide hands-on experience with Agile methodologies and agile networks, effective communication techniques, and strategies for creating a culture of continuous improvement. Coupled with the development of one's skills through AITD's agile governance, this will help fledgling managers further their practice and keep up with the latest innovative leadership trends. Bring your leadership to a new height with AITD Agile Mentorship Programs. Contact us to discuss how we at AITD can help you on your path to an Agile Leader.