Festive Surge Drives 12% Increase in Loans, BFSI Sector Strengthens Workforce

Loan demand for two-wheelers and four-wheelers has surged by 12% over the past four months, driven by the festive season. The BFSI sector is gearing up with increased hiring and upskilling to manage the surge. Job openings in retail lending and MFIs are expected to rise significantly.

The demand for personal and vehicle loans, including two-wheelers and four-wheelers, has surged by 12% in the last four months, according to a report by Teamlease Services. The report states that with the festive season onset, the Banking, Financial Services, and Insurance (BFSI) sector in India is preparing for increased customer activity and transactions.

To manage this, financial institutions are focusing on building a skilled workforce capable of delivering efficient customer service and enhancing digital banking operations during this busy period. The report also highlights a significant rise in job opportunities within the BFSI sector, particularly in retail lending, microfinance institutions (MFIs), and payment services. The increased demand is attributed to the festive shopping season, which began with Ganesh Chaturthi in September and will continue until November.

The festive season is expected to directly impact job openings in the retail lending and MFI space, with openings projected to rise from 12,000 to 19,000 between July and November 2024. The report predicts a 25% growth in demand for MFI services, emphasizing the sector's focus on financial inclusion and small-scale lending.

Moreover, hiring in payment services is expected to rise by 41%, and the credit card segment is projected to see a 32% increase in job openings. This surge is driven by the expanding use of digital payment solutions and credit offerings during the festive season. Financial institutions are not only expanding their workforce but also focusing on upskilling current employees to meet high market demands during this busy season.

"The festive season is always a high-pressure time for the BFSI sector, but this year, we are seeing exceptional growth in demand for skilled employees. From retail lending to payment services, the sector is evolving rapidly, and our data shows that companies are responding by expanding their workforce and focusing on upskilling initiatives to deliver seamless services during this crucial period," said Krishnendu Chatterjee, VP and Business Head, TeamLease Services. With a strong emphasis on digital innovation and customer-centric services, financial institutions are well-prepared to handle increased activity and deliver exceptional service through a well-prepared workforce.

(With inputs from agencies.)