30% Surge In job Demand For BFSI Sector In Tier 2 & 3 cities: Data

The Banking, Financial Services, and Insurance (BFSI) sector has witnessed a significant surge in demand for entry level positions, with a notable 24 per cent increase in 2024 compared to the previous year. Despite facing challenges related to high attrition rates, industry experts highlight a noticeable rise in demand, particularly in sectors such as insurance, housing, non-banking financial companies (NBFCs), and retail banking.

This heightened demand extends beyond major metropolitan areas, encompassing smaller cities in tier-2 and tier-3 categories, where substantial growth is observed. Krishnendu Chatterjee, VP and Business Head at TeamLease Services, notes, “Over the last two years, we've observed a 24 per cent overall growth in accounts. This expansion was predominantly in the Tier II and Tier III segments, which saw increases of 23 per cent and 37 per cent, respectively.”

Data analysis reveals growth trends across various city tiers. Tier I cities experienced a 5 per cent growth from 2021-22 to 2022-23 and a 9 per cent increase from 2022-23 to 2023-24. Tier II cities witnessed a 9 per cent rise in FY23 and a significant 23 per cent in FY24. Notably, Tier III cities showed a modest 2 per cent increase initially, followed by a remarkable 37 per cent jump.

According to estimates from Quess Corp and Teamlease Services, staffing mandates for frontline sales jobs in BFSI companies have increased by 14-20 per cent this year compared to the previous year. Additionally, a report by Quess Corp predicts that the IT and BFSI industries are expected to create approximately 5 million jobs through apprentice skilling by 2025.

Tier II cities experiencing high job demand include Jaipur, Chandigarh, Coimbatore, Surat, Ludhiana, Indore, Amritsar, Mysore, Nagpur and Vizag. Meanwhile, Tier III cities with rising job demand include Patiala, Bhatinda, Meerut, Jamnagar, Yamuna Nagar, Trichy, Hassan, Kota, Aurangabad and Rohtak.

The surge in demand can be attributed to India's expanding middle class and favorable economic conditions, leading to increased demand for financial products such as housing loans, personal loans, and credit cards. This growth necessitates the creation of more entry-level positions within the BFSI sector to cater to the growing customer base.