 "Tier 2, 3 cities see 30% rise in demand for jobs in BFSI sector, shows data")
The demand for entry-level positions in the Banking, Financial Services, and Insurance (BFSI) sector has seen a substantial increase of 24% in 2024 compared to the previous year, even as the sector faces challenges related to high attrition rates.
"This heightened demand is particularly noticeable in areas such as insurance, housing, non-banking financial companies (NBFCs), and retail banking," according to industry experts.
Notably, this increase is not confined to major metropolitan areas; smaller cities in tier-2 and tier-3 categories are also witnessing significant growth.
Krishnendu Chatterjee, VP and Business Head at TeamLease Services, said, "Over the last two years, we've observed a 24% overall growth in accounts. This expansion was predominantly in the Tier II and Tier III segments, which saw increases of 23% and 37%, respectively."
"Our data reveals growth trends across various city tiers. For instance, Tier I cities experienced a 5% growth from 2021-22 to 2022-23 and a 9% increase from 2022-23 to 2023-24. Tier II cities saw a 9% rise in FY23 and a substantial 23% in FY24. The most significant growth was seen in Tier III cities, with a modest 2% increase initially, followed by a dramatic 37% jump," added Chatterjee.
Staffing mandates for frontline sales jobs from BFSI companies are reportedly 14-20% higher this month compared to last year, according to estimates from Quess Corp and Teamlease Services.
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A report by Quess Corp titled ‘Apprentice Skill Trends’ predicts that the IT and BFSI industries are poised to create approximately 5 million jobs through apprentice skilling by 2025.
Tier II cities where the demand for jobs is high are:
Jaipur
Chandigarh
Coimbatore
Surat
Ludhiana
Indore
Amritsar
Mysore
Nagpur
Vizag
Tier III cities where the demand for jobs is high are:
Patiala
Bhatinda
Meerut
Jamnagar
Yamuna Nagar
Trichy
Hassan
Kota
Aurangabad
Rohtak
Why is the reason behind the surge?
The surge in demand can be attributed to India's growing middle class and favourable economic conditions, which have increased the demand for financial products like housing loans, personal loans, and credit cards.
"This has, in turn, driven the need for more entry-level positions within the BFSI sector to handle the growing customer base," Krishnendu Chatterjee said.
The influx of entry-level BFSI jobs in smaller cities is reshaping the hiring landscape, providing career opportunities to aspiring professionals outside major urban centres.
Need for upskilling
"With the growing demand for these positions, there is an urgent need for skill development and talent acquisition. BFSI firms are increasingly investing in training programmes and recruitment drives to build a workforce that can meet evolving customer needs.
The proliferation of entry-level BFSI jobs in smaller cities is also seen as a chance for economic empowerment, especially among youth and first-time job seekers", Krishnendu said.
Jobs in demand
"In the BFSI industry, roles in microfinance, credit procurement, debit recovery, and back-office executives are in high demand," explained Krishnendu. Additionally, positions related to data and IT security are also well-compensated entry-level opportunities within the sector.
Role of BFSI Socio-economic upliftment
BFSI firms are contributing to socio-economic development and upliftment by providing meaningful employment opportunities. The advent of microfinancing is aiding economic development, particularly in rural and semi-urban areas, by providing small-scale loans that can be transformative for local economies.
Chatterjee elaborated on the impact, "The introduction of microfinancing and the data it encompasses have significantly influenced the economic future of individuals and communities. Microfinancing companies, some of which specifically target marginalised populations, are playing a pivotal role in this shift, bringing banking services directly to people’s doorsteps, thereby fostering growth and lifestyle changes."