Decoding L&D Trends in Indian Banking | Balasundaram Athreya | President & Head – Campus Operations | Manipal Academy of BFSI

The rapid evolution of customer expectations, product innovation, regulatory landscapes, and intensified competition is reshaping the Indian banking sector. To keep pace with the swift adoption of digital assets and emerging technologies, banking professionals need to develop new skills and competencies. These factors are driving a renewed emphasis on Learning and Development (L&D), as the sector’s focus increasingly shifts toward cultivating digital expertise, agility, and customer-centric approaches essential for modern banking success.

Investments in L&D gain impetus
Recently, Indian banks have significantly increased their investments in Learning and Development (L&D) initiatives, underscoring their commitment to nurturing employee growth. Notable banks like HDFC Bank and Axis Bank are leading the way with substantial investments in programs focused on leadership development, digital upskilling, and specialized training for various banking roles. These programs are designed to align with the fast-changing demands of the banking sector.

In addition, institutions such as ICICI Bank, HDFC Bank, Axis Bank, Bank of India, and Kotak Bank have partnered with prominent educational and postgraduate training institutions to offer tailored programs that cover a wide range of functional and operational areas within the banking system.

One of India’s largest banks, SBI, has always been a leader in staff training. It has recently made considerable strides in L&D through its Strategic Training Unit (STU), ensuring that employees are equipped with the necessary skills and resources. The STU represents a critical component of SBI’s strategy to prepare its workforce for evolving challenges and opportunities in the banking landscape.

The role of L&D in banking today
As financial inclusion scales new highs in India, demand for banking services including consumer credit and investment products is on a constant rise. This demand growth alongside India’s complex regulatory landscape demands ongoing training to ensure employees remain compliant with constantly evolving standards. Staying updated on regulatory changes and best practices must be a top priority. With 27.3 million workers, or 7% of India’s workforce, requiring skills across 360-degree relationship banking, operational management and digital skills, the need for robust training initiatives is critical. In particular, major players in the industry are also now investing in creating inhouse digital competence and skills spanning cloud computing, cybersecurity, and digital content creation.

Currently, Indian banks invest about 1.5-2% less in technology than their global counterparts, who spend 7-10% of their annual revenue on tech. However, with the expectation that 71.7% of all payment transactions in India will be digital by 2025, and services adoption by customers will go increasingly digital platform based, the demand for digitally skilled professionals is projected to increase ninefold. This shift will likely drive increased investment in training and upskilling programs to meet the future workforce’s neds that will witness relationship banking evolve in an increasingly digitally served world.

L&D programs must prioritize digital and emerging technology skills while tailoring learning to individual needs and preferences to maximize adoption and effectiveness. Additionally,enhancing customer experience and retention remains crucial. For this, banking professionals must develop strong interpersonal, empathetic, and problem-solving abilities alongside technical skills. Balancing technical proficiency with soft skills is essential for planning comprehensive L&D strategies in the banking sector.

L&D best practices
As banking gets more competitive, gaining excellent leadership capabilities stands paramount. Leadership development including strategic thinking, decision-making, and team management should be focused on. Additionally, fostering a healthy and inclusive workplace culture requires promoting diversity and inclusion. Unconscious bias, cultural sensitivity, and best practices for diversity and inclusion should all be part of L&D.

Optimizing Training Methods for Maximum Adoption and Retention
A holistic adoption of L&D initiatives will also require easy enablement. For this, it is important to combine self-paced online learning with conventional classroom practice alongside practical training. This integrated learning strategy provides a thorough and efficient means of giving staff members the skills to handle the changing landscape. This alongside experiences like OJTs, gamified content, hybrid training, flipped classes, microlearning, and the use of emerging technologies – AR/VR classrooms are effective and rapidly gaining appeal among learners.

Challenges to address
Banks recognize the importance of learning and development (L&D), but constraints both in terms of a nurturing culture as well as learning resources can limit the scope and frequency of their training programs. Personalized learning often takes a backseat when catering to mass requirements, leaving little time for training new hires. Additionally, balancing job demands with L&D obligations, especially for mid-to-senior professionals, presents a significant challenge.

Misaligned L&D efforts can result in disengaged employees and wasted resources. For these programs to be effective, they must align with the broader business goals. Resistance to change is another obstacle, as seasoned professionals may hesitate to adopt new technologies and skills. However, overcoming this reluctance is crucial for the success of these initiatives.

Some banks lack the internal expertise to design and implement comprehensive L&D programs. These institutions often rely on external banking training academies with specialized resources, trainers, and infrastructure. Certification-led programs also foster engagement, driving higher participation and follow-through.

With Indian banks on the verge of a major technological transformation, it is critical to upskill the existing workforce in digital and emerging technologies to meet the demands of Industry 5.0. Moreover, behavioural alignment and competency-building will empower professionals to navigate the evolving landscape, anticipate industry trends, understand customer expectations, and adapt quickly to succeed.