The Growing Demand for Financial Management Professionals in India Inc

The Growing Demand for Financial Management Professionals in India Inc

The Growing Demand for Financial Management Professionals in India Inc
The Growing Demand for Financial Management Professionals in India Inc

September 03, 2021

The Covid-19 pandemic may have turned the world upside down, but financial wealth in India grew from 2015 to 2020 by 11% per annum to $3.4 trillion and is projected to reach $5.5 trillion by 2025. By as early as 2028, India is expected to be the fourth largest private wealth market globally. Given this rapid rise in India's financial wealth and the financial services sector, financial management is witnessing a colossal and continuous rise in operational efficiencies, job growth and domestic and international demand.

Need for Effective Financial Management
Amidst India's accelerated phase of growth in the post-pandemic era, there is a need for effective financial management that encompasses planning, organising, directing, and controlling financial activities. The need is evident if we look at the data. Financial wealth accounted for $250 trillion (52%) of global wealth in 2020, with the asset management industry growing by 11% in 2020 to $103 trillion. Such exponential growth provides ample opportunities for India’s finance sector. As per reports, over the next decade, India has the potential of becoming the world's future investment hub. As such, there is a need for effective financial management that primarily focuses on the procurement, allocation, utilisation, and control of financial resources within organisations.

Financial Management Requires a Diverse Set of Skills
Whether it is young professionals who have just started their career in financial management or experienced executives who are deeply rooted in the management domain, they all face a need for upskilling in the face of today's fast-evolving market paradigms. This is because the role of finance professionals within businesses is evolving.

Over the last decade, the economic upheaval has made many business leaders emphasise recruiting finance professionals who function as fully integrated partners in the business, providing financial insight to the company's leadership. They are required to demonstrate skills ranging from commercial acumen to razor-sharp analytical abilities. To thrive and survive in a constantly morphing business environment, finance professionals must possess the knowledge of contemporary strategic financial management, statement analysis, risk management, derivatives, accounting, financial reporting, IT skills, and quantitative skills.

However, amidst evolving industry needs, there is a dire shortage of upskilled financial management professionals. In a survey by Robert Walters, 61% of CFOs said they had issues sourcing candidates from traditional talent pools, and 49% said they preferred to fill skills gaps in their finance team by upskilling current employees.

Career Advancement in Financial Management
A combination of both technical and soft skills is necessary, as the role of finance professionals has become more prominent within organisations. As such, finance professionals are looking at executive education programmes from top-tier B-Schools to upskill and gain formal qualifications and broader people management skills. In India, IIM Kozhikode has established a legacy of providing quality management education through executive postgraduate certificate programmes. IIM Kozhikode's Executive Post Graduate Certificate in Financial Management (EPGCFM) will be accepting applications for its 13th Batch this year, which has emerged as a lucrative option among finance professionals due to its advanced curriculum and immersive pedagogy.

The programme offers a range of foundational and advanced courses in Management Accounting, Security Analysis, Risk Management, Portfolio Management, Valuations, Mergers and Acquisitions, Financial Derivatives, and Strategic Financial Management.

As finance leaders grow their businesses, they are bound to face new challenges. Better financial management is the need of the hour as it will lead to better growth of both companies and employees. For professionals who possess the financial management skills relevant in industry 4.0, the career growth opportunities will be ample.

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 Sources:
[1]https://bfsi.economictimes.indiatimes.com/news/financial-services/indias-financial-wealth-expected-to-grow-by-10-to-5-5-trillion-by-2025-bcg/83541710
2 https://www.ibef.org/industry/financial-services-india/infographic#
3https://www.bcg.com/en-in/press/10june2021-despite-covid-19-global-financial-wealth-soared-record-high-250-trillion-2020
https://www.bcg.com/press/8july2021-asset-management-industry-emerged-strong-from-pandemic-crossing-100-trillion-threshold
4 https://blogs.cfainstitute.org/investor/2019/07/12/india-the-worlds-future-investment-hub/
5https://www.robertwalters.co.uk/content/dam/robert-walters/country/united-kingdom/files/whitepapers/Bridging-The-Skills-Gap-In-Finance-Functions.pdf
6https://www.bcg.com/en-in/press/10june2021-despite-covid-19-global-financial-wealth-soared-record-high-250-trillion-2020
https://www.bcg.com/press/8july2021-asset-management-industry-emerged-strong-from-pandemic-crossing-100-trillion-threshold,https://bfsi.economictimes.indiatimes.com/news/financial-services/indias-financial-wealth-expected-to-grow-by-10-to-5-5-trillion-by-2025-bcg/83541710, https://www.ibef.org/industry/financial-services-india/infographic#,

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