Teamlease anticipates that this trend will persist in the current fiscal year as retail lending institutions continue to prioritise market penetration.
A recent analysis conducted by TeamLease Services highlights a notable increase in employment demand within the retail lending sector in BFSI, particularly in Tier II and Tier III markets. The analysis, based on data from the firm's top clients, totaling a base of over 45,000 temp employees, underscores a significant trend in the industry.
Over the past two financial years, the retail lending sector, which includes personal loans, home loans, credit cards, and microfinance, has exhibited remarkable growth, with a 29 per cent increase in overall employment figures. Notably, the Tier II and Tier III segments have witnessed substantial growth rates of 21 per cent and 26 per cent, respectively, YoY between FY23 and FY24. This surge in employment demand reflects the expanding footprint of retail lending institutions in non-metropolitan and semi-urban areas.
The tier II and tier III cities that are driving workforce demand include Jaipur, Chandigarh, Coimbatore, Surat, Ludhiana, Indore, Amritsar, Mysore, Patiala, Bhatinda, Meerut, Kota, and more.
"This data sheds light on the evolving dynamics of the retail lending industry, particularly in Tier II and Tier III markets," said Krishnendu Chatterjee, VP and business head, BFSI, TeamLease Services. Chatterjee further added, "With employment demand soaring by 29% over the past two financial years, this underscores the urgent need for skilled professionals to fuel the growth engine of the retail lending industry."
Teamlease anticipates that this trend will persist in the current fiscal year as retail lending institutions continue to prioritise market penetration and customer outreach strategies in emerging markets.