Case Study

EQUIPPP’s PPP Initiative to Bridge the Skill Gap in the BFSI Industry

Background

The BFSI (Banking, Financial Services, and Insurance) sector faces significant challenges in recruiting skilled fresh graduates and managing high attrition rates. To address this, a group of C-level executives from prominent multinational corporations, including State Street, HSBC, LSE, MassMutual, and JPMorgan, formed a consortium. Their mission was to bridge the skill gap between the BFSI industry and educational institutions. Recognizing the urgency and scale of the issue, EQUIPPP stepped in with an innovative Public-Private Partnership (PPP) approach.

Formation of BFSI Consortium Foundation

EQUIPPP initiated the formation of a legal entity, the BFSI Consortium Foundation, and facilitated the signing of a Memorandum of Understanding (MoU) to formalize the initiative. The Telangana State Council of Higher Education (TSCHE) was brought on board, and a strategic meeting with the Hon’ble Chief Minister and Hon’ble IT Minister of Telangana was arranged by EQUIPPP. This meeting was pivotal in converting the skill development initiative into a PPP model.

MoU and Training Program

An MoU was signed between TSCHE and the BFSI Consortium Foundation, committing the consortium to train 5,000 B.Com students and 5,000 B.Tech students in the BFSI domain at no cost. This initiative aimed to equip students with industry-relevant skills and enhance their employability.

Leveraging EQUIPPP Subsidiaries for Successful Execution

EQUIPPP DESI

To address the issue of course fees, EQUIPPP’s subsidiary, EQUIPPP DESI, proposed an outcome-based funding model. EQUIPPP DESI agreed to set up a revolving fund, with the first-year expenses borne by EQUIPPP. This groundbreaking idea was presented at an event organized by EQUIPPP in collaboration with the National Stock Exchange, showcasing case studies on outcome-based funding by other governments. EQUIPPP DESI’s financial innovation was crucial in making the training program accessible and sustainable.

EQUIPPP 3.0 Labs

EQUIPPP’s technology arm, EQUIPPP 3.0 Labs, developed an AI-enabled BFSI Hire Portal. This platform not only monitors the progress and funding status of each student but also analyzes their skills and matches them with the staffing requirements of BFSI companies. This AI-driven approach ensures that the right candidates are matched with the right job opportunities, enhancing placement efficiency and effectiveness. By leveraging cutting-edge technology, EQUIPPP 3.0 Labs ensured transparency, efficiency, and accountability in the program’s execution.

Utilizing EQUIPPP Technology Platforms

EQUIPPP IX Platform

For outcome funders, EQUIPPP leverages its EQUIPPP IX platform to provide impact assessments. This platform tracks the performance and outcomes of the training programs, ensuring transparency and accountability. The detailed impact assessments help demonstrate the value and effectiveness of the investments in students’ education and training, which is crucial for securing continued support and funding.

EQUIPPP Book Building Platform

To secure CSR grants and additional funding, EQUIPPP uses its Book Building platform. This platform facilitates the gathering of CSR contributions by showcasing the impact and potential of the training initiatives. By presenting compelling data and success stories, EQUIPPP can attract more CSR participation and ensure sustained financial support for the program.

Staffing and Placement

A Key Business Opportunity for EQUIPPP

A significant business opportunity for EQUIPPP lies in the staffing and placement of trained students into the BFSI industry. By equipping students with the necessary skills and connecting them with potential employers through the AI-enabled BFSI Hire Portal, EQUIPPP positions itself as a crucial intermediary between educational institutions and the BFSI sector. This creates a steady pipeline of qualified candidates, addressing the industry’s talent needs while generating revenue for EQUIPPP through placement services.

Benefits to Stakeholders

Students

  • Enhanced skill sets.
  • Guaranteed placement opportunities in Telangana.

Government of Telangana

  • Creation of 30,000 jobs for local youth over three years.
  • Attraction of Global Capability Centers (GCCs) to Telangana with industry-friendly policies.

BFSI Industry

  • Access to a skilled local talent pool.

  • Reduced attrition rates.

BFSI Consortium Foundation

  • Emergence as a successful non-profit, attracting CSR participation.
  • Potential to scale the model globally.

EQUIPPP

  • Proof of Concept (POC) for its innovative models.
  • IT revenue and gains on outcome investments.
  • Revenue from staffing and placement services.
  • Enhanced ability to secure CSR grants through impact assessments and the Book Building platform.

    Conclusion

    EQUIPPP’s intervention and innovative PPP approach, leveraging its subsidiaries EQUIPPP DESI and EQUIPPP 3.0 Labs, have effectively addressed the major challenges faced by the BFSI sector. By aligning the interests of educational institutions, government bodies, and industry stakeholders, EQUIPPP has created a sustainable model for skill development and job creation. This initiative not only benefits the students and the BFSI industry but also contributes significantly to the socio-economic development of Telangana. Additionally, the staffing and placement services provide a substantial business opportunity for EQUIPPP, ensuring a continuous revenue stream and reinforcing its role as a vital link in the talent supply chain. EQUIPPP’s use of its IX and Book Building platforms further enhances its ability to secure funding and assess impact, solidifying its leadership in this innovative PPP model.

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