With extensive experience in the financial services sector, Shipra Mishra, Director of Financial Services at Personnel Search Services brings a wealth of knowledge and insight into the evolving landscape of talent in the BFSI industry.
In this blog, she explores the outlook for talent in 2025, highlighting the challenges and opportunities that lie ahead for traditional banking and capital markets. As financial institutions navigate headwinds such as NPAs, liquidity constraints, and inflation, Shipra delves into the promising growth prospects for IPOs, bond issuances, asset management, and broking. Join her as she examines the critical technology areas and skillsets that will shape the future of the industry
1. While bank lending is expected to see headwinds early in 2025 with NPAs, liquidity and inflation, capital markets including IPOs, bond issuances, asset management/ broking looks set for a strong year. Do you see this divergence playing out?
Absolutely, I see this divergence playing out in the Indian BFSI industry in 2025. While traditional banking may face challenges such as rising NPAs, liquidity constraints, and inflationary pressures, the capital markets and asset management sectors are poised for significant growth.
Capital markets, including IPOs and bond issuances, are expected to thrive due to increased investor confidence and a robust economic outlook. The asset management and broking sectors will likely benefit from a growing middle class and rising disposable incomes, driving demand for investment products and services.
In contrast, banks will have to navigate the headwinds by focusing on digital transformation, risk management, and cost efficiency to remain competitive. The adoption of AI and blockchain technologies will play a crucial role in enhancing operational efficiency and customer experience.
The divergence between traditional banking and capital markets is likely to continue, with each sector facing distinct challenges and opportunities.
“As we navigate through 2025, the financial services sector in India stands at the cusp of transformative growth. The demand for skilled talent is at an all-time high, driven by technological advancements in areas such as Generative A.I., Blockchain technology, and Cloud computing, along with evolving regulatory landscapes.
Organizations that invest in continuous learning and adaptability will not only thrive but also set new benchmarks in the industry. The future is bright for those who are prepared to embrace change and innovate.”
– Shipra Mishra, Director Business Development, Personnel Search Services
2. Financial institutions have been at the forefront on technology adoption at scale to make business operations more efficient. Which technology areas and technology talent skillsets do you see being most in demand this year?
Global financial institutions have been advancing in technology transformation and adopting cutting-edge technologies to enhance business operations over the past few years. The Indian BFSI industry is keeping pace in technology adoption to improve operational efficiency across various functions. I foresee several technology areas and talent skill sets that will be in high demand within the Indian BFSI industry for the next 12 to 18 months at a minimum. Some of these technology areas include:
- Artificial Intelligence (AI) and Machine Learning (ML): These technologies are transforming financial operations by enhancing fraud detection, automating tasks, and improving decision-making accuracy.
- Cloud Computing: The adoption of cloud technologies is enabling institutions to scale operations and respond faster to market opportunities.
- Blockchain: This technology is revolutionizing BFSI services, from secure payments to seamless online verification processes.
- Cybersecurity: With the rise in cyber threats, roles like Cybersecurity Analysts and Information Security Officers are essential to protect sensitive financial data.
- Data Analytics: Organizations are increasingly relying on data analytics to drive decisions, making roles such as Data Analysts and Data Engineers highly sought after.
As I closely work with most of the top financial organizations in India, I have been supporting them in onboarding talent skillsets that include:
- Data Analysis and Interpretation: Professionals skilled in data analytics tools like Python, R, and Excel are crucial for cleaning, analyzing, and interpreting complex financial datasets.
- AI and ML Expertise: Roles such as AI Backend Engineers, Machine Learning Engineers, and Data Engineers are integral as companies continue investing in these transformative technologies.
- Cybersecurity Skills: Cybersecurity Analysts and Information Security Officers are essential to safeguard assets and ensure regulatory compliance.
- Blockchain Development: Blockchain Developers and Project Managers are in high demand as organizations adopt this technology for secure transactions and identity verification.
- Financial Modelling: Accurate financial modelling is a key skill for roles like Financial Analysts and Investment Planners.
The BFSI industry is rapidly evolving, and professionals with expertise in these technology areas and skill sets will be highly sought after in 2025.
3. Do you see tier 2 and 3 cities being major centres of hiring for banks, NBFCs, microfinance, and asset management companies in 2025?
Yes, I am part of the journey for several clients of PSS who are hiring talent across Tier 2 and 3 cities. Many of these cities are becoming major hiring hubs for banks, NBFCs, microfinance, and asset management companies in 2025.
Several factors are driving this trend:
- Remote Work and Digital Transformation: The adoption of remote work models has broken geographical barriers, allowing companies to tap into talent pools beyond Tier-1 cities. This flexibility has opened up new opportunities for professionals in Tier-2 and Tier-3 cities.
- Skilling Opportunities: These cities have witnessed significant improvements in skilling opportunities, with renowned management and engineering institutes and government initiatives empowering individuals with the necessary skills.
- Industrial Expansion: Many industries, including banking and finance, have expanded their operations to Tier-2 cities, creating employment opportunities and attracting professionals seeking career growth outside traditional metropolitan areas.
- Cost Efficiency: Employers can optimize costs by hiring talent at and from Tier-2 and Tier-3 cities, where the cost of living is generally lower.
Prominent Tier-2 cities for BFSI hiring include Nagpur, Jaipur, Vadodara, Trichy, Kanpur, Chandigarh, Bhubaneshwar, Varanasi, Raipur, Vishakhapatnam, Prayagraj, Gandhinagar, Lucknow, and Indore.
The shift towards Tier-2 and 3 cities is a positive development, providing diverse talent opportunities and contributing to the economic growth of the Indian states.
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