AI Can’t Replace Human Touch: Why Soft Skills Are Now Critical In BFSI Jobs

soft skills are becoming essential for job readiness in the bfsi sector.

By Dr Soumyadip Roy

For many years, educational credentials were seen as the principal means for people to achieve career success. The world of work has changed, and it is more challenging to uphold this measurement of what is required to be ’employable’ in the workplace. For example, an aspiring graduate eager to enter the BFSI domain may have a strong academic record and the technical skills necessary for the job, but employers now seek candidates who can build relationships, critically think through complex problems, and adapt to an emerging and quickly changing workplace.

The Limits Of A Degree

If institutions do not provide these necessary soft skills and interpersonal skills, there will be a significant gap between what the academic learning structure provides and what prepares students for success in the workplace. Degrees are no longer enough to be on the hiring list; today companies value those who balance a good degree with job-ready skills such as critical thinking, communication, and teamwork, among others.

It is assumed that higher education equips students with these essential skills; but findings from academic and industry reports say otherwise, this needs more attention and structured development.

The Employability Gap Widens

According to India’s Graduate Skill Index 2025, a comprehensive study by Mercer | Mettl on the employability of India’s graduates, it was reported that only 42.6% of graduates who apply for jobs are employable, a number that has dropped from 45% in 2023. There exists a significant gap between what is taught in academic institutions and what the contemporary workplace demands. While our institutions are teaching theory and imparting technical know-how, the Indian job market demands practical skills that make students real-world ready.

BFSI: A Sector Under Pressure

The situation becomes even more pronounced in certain critical sectors—Banking, Financial Services, and Insurance (BFSI) being a prime example. In the financial world, every role is ultimately customer-facing. Even beyond sales, BFSI professionals are required to engage with customers, critically solve their problems, maintain relationships, and carry out operations. According to a report by the BFSI Sector Skills Council, teamwork, people management, communication, product knowledge, and technical know-how are some of the most important skills a BFSI professional must possess.

This skill gap is more pronounced in students from non-metros. In many cases, students already possess the technical foundation, but they cannot get employed simply because they have poor communication and interpersonal skills. Institutions in small towns lag further behind major urban institutes in terms of soft skills and exposure to real-world workplace experiences.

The Human Edge In An AI World

In a time when AI can replicate many technical skills and functions, human skills – soft skills – such as empathy, communication, flexibility, adaptability, and critical thinking are the true indicators of employability in today’s workplace. It is now necessary that students take more initiative outside of their institution to upskill themselves for jobs based on what would help them become employable, rather than on what is simply required of them in the formal curriculum.