The banking, financial services and insurance (BFSI) sector is poised to witness a substantial increase in the net employment in the first half of FY25, as per a report by the staffing firm Teamlease Services. In the April to September 2024 period, Teamlease expects the banking sector to register the highest growth in net employment at 7.21% which will be followed by the 5.41% growth in the non-banking financial companies (NBFCs), signifying their ambitious workforce expansion plans.
The other components of the BFSI space – insurance and fintech sectors – too are likely to see growth in H1FY25. For instance, the insurance sector, with a net employment increase of 5.25%, is going to hire more people on account of meeting requirements in regulatory compliance, cybersecurity, and heightened customer engagement, as per the report. The fintech sector, on the other hand, is expected to witness net employment growth of 4.89% which has been attributed to the rise of UPI (unified payments interface) and the expansion of the open banking ecosystem.
The report highlights that NBFC companies have the highest propensity to expand their workforce. For instance, 65% of respondents plan to increase their workforce while 16% intend to reduce it, and 19% anticipate no change. In the banking sector, however, 60% of respondents have expressed plans to enlarge the 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 FY23 compared to 10% in FY22 as well as achieving a three-year high credit-deposit ratio of 75.8%. These indicators reflect robust economic activity and borrower confidence,” the report added.
Krishnendu Chatterjee, VP and business head at TeamLease Services said that the BFSI sector’s growth trajectory underscores the critical role of continuous upskilling and technological adoption. “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,” he said.