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In 2021, India’s fintech sector saw significant growth, with investments worth over $8 billion made at various stages. At the time, the industry’s market size was around $31 billion, according to BInC Insights. By 2024, the market will grow almost 3.6 times to reach an impressive $111.14 billion.
In the third quarter of 2024, the sector attracted $778 million in funding, an increase of 66% from the $471 million in the third quarter of 2023, according to Tracxn data. Furthermore, the market is expected to reach $421.48 billion by 2029, with a robust compound annual growth rate (CAGR) of 30.55%, 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 stores to renowned restaurants – has contributed significantly to this expansion into the mainstream. Leading fintech startups like Paytm, Pine Labs, PayU and Faircent have played a pivotal role in driving this growth.
Employment jump in 2024
The growth of the fintech sector also leads to an increase in job opportunities. According to a recent report from TeamLease, employment in the fintech sector is expected to grow by 7.5 percent in 2024. This increase is attributed to several factors, including a 7.3 percent net increase in employment in the banking sector, fueled by regulatory initiatives. and the growing demand for digital-centric services.
Non-banking financial companies (NBFCs) are also growing, with a net 5.1 percent increase in employment. Additionally, 63 percent of companies project growth and capabilities, focusing on improving their loan portfolios and expanding into underbanked regions. Additionally, insurance has the smallest net change in employment, at 2.0 percent, although 65 percent of companies anticipate an increase in their workforce. The industry is focusing on risk modeling, insurance collaborations and distribution innovation to drive market penetration. Recruitment is focused on actuarial experts, customer experience managers and data scientists to leverage big data analytics and AI-driven underwriting solutions, reflecting a conservative but focused recruitment approach technology.
Even if industry leaders are not significantly increasing their office headcount, they are prioritizing the skills of their workforce 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, loan management digital, etc.
Krishnendu Chatterjee, Vice President and Business Head at TeamLease, explained the changing business landscape: “The rise in cloud adoption, AI and IoT integration is not only reshaping the functioning of businesses, but also redefines the roles and skills required. growth becomes more qualitative, emphasizing productivity, innovation and adaptability as much as expansion.
Chatterjee added: “We have observed an important inflection point in India’s workforce dynamics. Beyond the numbers, what stands out is the growing interdependence of technology adoption and workforce efficiency.