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
FinTech BizNews Service
Mumbai, August 1, 2024: TeamLease Services, India's leading staffing conglomerate revolutionizing employment, employability, and ease of doing business, has released the ‘Employment Outlook Report’ for the first half of fiscal 2025 ( April 2024 to September 2025). The report provides an overview of the employment growth forecast and employers' intent to adjust workforce sizes within the BFSI (Banking, Financial Services, and Insurance) sector.
According to the report, the banking sector is poised to experience the most substantial net employment growth at an impressive 7.21%, positioning it as the leader in employment expansion within the BFSI sector. 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.
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. These results underscore the dynamic growth of the BFSI sector and its pivotal role in extending credit to the MSMEs. Consequently, the industry's revenue exceeded INR 320 billion in FY 24. 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.
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.
Mr. Krishnendu Chatterjee, VP and Business Head, TeamLease Services, said, “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.”
The resilient Indian banking industry is poised for significant development in growth areas such as retail lending, SME financing, and digital banking, driven by increased credit demand. Meanwhile, the FinTech and insurance industries, though slightly less optimistic, continue to grow steadily. FinTech is leveraging the rapid adoption of UPI and open banking, while the insurance sector is expanding its workforce to meet demands in regulatory compliance, cybersecurity, and enhanced customer engagement.
