Fintech Employment Soars with 7.5% Growth in 2024 Although industry leaders are not significantly increasing headcounts in offices, they are prioritizing workforce skills to align with evolving business models

In 2021, the Indian fintech industry experienced a significant boom, with investments worth over USD 8 billion made across various stages. Back then, the market size of the sector stood at approximately USD 31 billion, according to BLinC Insights. Cut to 2024, the market has grown nearly 3.6 times to an impressive USD 111.14 billion.

In Q3 2024, the sector attracted USD 778 million in funding—a 66 per cent increase from USD 471 million in Q3 2023, as per the Tracxn data. Additionally, the market is projected to reach USD 421.48 billion by 2029, growing at a robust compound annual growth rate (CAGR) of 30.55 per cent, according to Mordor Intelligence.

This growth is largely driven by the integration of emerging technologies, including artificial intelligence (AI), blockchain, and data analytics. The widespread adoption of fintech applications by businesses of all sizes—from small kirana stores and medical shops to renowned restaurants—has significantly contributed to this expansion with the common public. Prominent fintech startups like Paytm, Pine Labs, PayU, and Faircent have played a pivotal role in fostering this growth.

Employment jump in 2024

The fintech sector's growth is also driving a surge in job opportunities. According to a recent report by TeamLease, employment in the fintech industry is projected to grow by 7.5 per cent in 2024. This increase is attributed to several factors, including a 7.3 per cent net rise in employment within the banking industry, fueled by regulatory initiatives and the growing demand for digital-centric services.

Non-banking financial companies (NBFCs) are also witnessing growth, with a 5.1 per cent net rise in employment. Also, 63 per cent of firms project growth, capabilities, focusing on enhancing their lending portfolios and expanding into underbanked regions. Also, the insurance sees the lowest net employment change at 2.0 per cent despite 65 per cent of firms anticipating headcount expansion. The industry is focusing on risk modeling, insurtech collaborations, and distribution innovation to boost market penetration. Hiring is centered around actuarial experts, customer experience managers, and data scientists to leverage big data analytics and AI-driven underwriting solutions, reflecting a cautious yet technology-driven hiring approach.

Although industry leaders are not significantly increasing headcounts in offices, they are prioritizing workforce skills to align with evolving business models. Recruitment is particularly active in areas such as blockchain developers, digital product management, AI-enhanced fraud detection, credit risk analysis, cyber risk analysts, digital lending management, and other.

Krishnendu Chatterjee, VP and Business Head at TeamLease, elaborated on the changing job landscape, "The surge in cloud adoption, AI, and IoT integration is not just reshaping how businesses operate but also redefining the roles and skills required. These trends suggest that workforce growth is becoming more qualitative, emphasizing productivity, innovation, and adaptability as much as expansion."

Chatterjee further noted, "We've observed an important inflection point for workforce dynamics in India. Beyond the numbers, what stands out is the increasing interdependence of technological adoption and workforce efficiency."