India’s BFSI (Banking, Financial Services, and Insurance) sector is on a hiring spree, with the banking industry leading the charge. A new report by TeamLease Services reveals that the sector is set to witness a net employment growth of 7.21% in the first half of the fiscal year 2025.
Following closely, NBFCs (Non-Banking Financial Companies) are expected to witness significant employment growth with a projected net increase of 5.41%, signifying their ambitious workforce expansion plans. The insurance sector is projected to demonstrate steady growth, with a net employment increase of 5.25%, reflecting the industry’s focus on meeting requirements in regulatory compliance, cybersecurity, and heightened customer engagement.
Meanwhile, FinTech exhibits the lowest growth among the mentioned sectors, with forecasted net employment growth of 4.89%, albeit still indicating a favorable hiring trend. This growth is attributed to the rise of UPI and the expansion of the open banking ecosystem.
Here are the key takeaways of the report:
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The banking industry is expected to be the biggest job creator within the BFSI sector, with a projected net employment growth of 7.21%. -
Non-Banking Financial Companies (NBFCs) are also gearing up for significant expansion, with a forecasted net employment growth of 5.41%. -
The insurance industry is expected to witness a steady net employment increase of 5.25%. -
The FinTech sector is projected to grow at a moderate pace of 4.89%, driven by the expansion of the open banking ecosystem and the rise of UPI.
Regarding employers’ intent to calibrate workforce sizes, NBFCs demonstrate the highest propensity to expand their workforce. The findings of a survey-based report reveal that 65% of respondents plan to increase their workforce, while 16% intend to reduce it, and 19% anticipate no change. Within the banking sector, 60% of respondents express plans to enlarge their workforce, while 20% intend to downsize it, and an additional 20% foresee no changes.
“The banking industry is positioned for growth, evidenced by the credit growth for Scheduled Commercial Banks, which reached an 11-year high of 15.4% in FY 2023 compared to 10% in FY 22, as well as achieving a three-year high credit-deposit ratio of 75.8%. These indicators reflect robust economic activity and borrower confidence,” noted the report.
The FinTech sector is looking balanced according to the report. 57% of respondents plan to increase their workforce, 20% intend to decrease it, and 23% foresee no change. The sector’s growth is driven by innovations in digital payments and personalized financial product development. The insurance sector also shows a moderate intent to grow, with 56% of respondents planning to increase their workforce, 19% intending to decrease it, and 25% seeing no change.
“The BFSI sector’s growth trajectory underscores the critical role of continuous upskilling and technological adoption. As banking leads with a 7.21% increase in employment and 65% of NBFCs planning workforce expansion, it becomes evident that a tech-savvy, adaptable workforce is key to sustaining this momentum. Embracing innovation and fostering skill development will be crucial in meeting the employment demand in the financial services landscape,” said Krishnendu Chatterjee, VP and Business Head, TeamLease Services.
First Published: Aug 01 2024 | 3:40 PM IST
