Mutual Fund and Wealth Management Firms to drive hiring surge, with 15%+ deployment focused on Tier II & III cities

Hiring to be driven by a mix of specialized talent and large-scale advisor roles, as financial firms ramp up digital and regional expansion

Mumbai : India’s BFSI (Banking, Financial Services, and Insurance) sector is undergoing a structural transformation, not only with how Indians save and invest, but also how financial institutions hire and deploy talent. As digital finance gains unprecedented traction, traditional banks digitize and investor base expand beyond metros, BFSI companies are rapidly evolving their workforce strategies. Hiring in the BFSI sector is projected to grow by 8.7% in FY25–26 and 10% by 2030 adding 2,50,000 permanent roles, with a marked shift in hiring mandates from Tier I to Tier II and III cities. In fact, more than 25% of hiring mandates in 2025 are already coming from beyond the top eight metros.

H1FY25 saw a 27%+ increase in hiring activity compared to H1FY24, signalling strong momentum across frontline, digital, and compliance functions. Candidates with local language proficiency and grassroots sales experience are now 2.5x more likely to be shortlisted and command 10%-15% higher compensation.

As households move from traditional assets to market-linked instruments like ULIPs, mutual funds, and pension products, talent demand is rising across the board. Banks have increased hiring for Sales & relationship executives, digital product managers, credit risk analysts are some of the most sought out roles in traditional BFSI hiring this year. AI/ML, Data scientists,  cybersecurity experts, UX/UI, cloud and ERP migration specialist are the most hired role in BFSI GCC’s and the hiring across the sector these GCC increased by 11% YOY. While wealth and insurance firms are increasingly seeking for financial planners, investment advisors, digital underwriters, and claims automation specialists amongst others. Markets like Indore, Coimbatore, Nagpur, and Guwahati saw 15-18% increase in hiring, alongside rising traction in Surat, Jaipur, Lucknow, and Bhubaneswar by 11-13%

According to Mr. Karthikeyan Kesavan (KK), Director and Head of Business – Permanent Recruitment, Adecco India, “The hiring landscape in the BFSI sector is being redefined by two converging shifts: the rapid rise of digital-first investors and the pivot towards Tier II and III cities. While hiring demand remains strong across BFSI sector, mutual fund companies and wealth management firms are leading the surge by 9%+, as market-linked investments gain traction beyond metros. Firms today need multilingual, digitally fluent talent with deep regional context to manage these relationships.” “Upskilling is gaining more traction with businesses evolving at a much faster pace. Case in point; in the insurance category, 78% insurers have prioratized upskilling and they have seen 30% boost in claim efficiency just by addressing the knowledge barrier”, he added.

In banking, hiring across tech and compliance-led hiring has increased by 9.75%. Public and Private sector banks are strengthening their digital teams with talent across core banking modernization, and cloud-based infrastructure, Interactive chatbots and seamless digital app experience There is also 7%-8.25% growth in hiring for credit underwriting, collections, and regulatory compliance as credit penetration rises across MSMEs and rural segments. Additionally, the launch of digital-only branches in Tier-II and III towns is driving demand for operations, customer experience, risk management and customer support by 15%.

In financial services, particularly wealth management and fintech, the growing appetite for market-linked investments and the rapid rise of digital distribution platforms are fuelling hiring. With demat accounts doubling since pre-pandemic levels, mutual fund and SIPs hitting record highs, nearly 50% of new SIP inflows and demat registrations now coming from non-metro cities – this is an opportune time for job creation. In response, mutual fund companies, wealth management and stock broking firms have been aggressively expanding their advisor networks beyond metros, driving a 100% increase in demand for SEBI-certified investment advisors, Certified Financial Planners (CFPs), regional relationship managers behavioural analysts amongst others. At the same time, fintech firms are scaling their technology, data science, and product teams to power hyper-personalized financial planning, embedded finance, and advisory tools. Additionally, growing regulatory oversight and cybercrime threat has led to a 9% uptick in hiring across KYC, fraud prevention, and grievance redressal roles.

In insurance, digital transformation and deeper rural outreach are reshaping the talent landscape fuelled by 100% FDI. Hiring has seen moderate 6%-9% uptick for roles like digital underwriters, AI-based claims specialists, fraud detection analysts , digital appraisers alongside frontline distribution roles like Micro Insurance agents, Field sales and advisors in emerging markets. Life and health insurers are also ramping up actuarial talent and customer servicing teams by 5%-7% to handle higher volumes and improve turnaround times. With IRDAI pushing for insurance inclusion and tech-first processes, the sector is seeing sustained Y-o-Y 5%-7% hiring across both tech and traditional functions.

“We are also witnessing consistent momentum with a 30% surge in mid-to-senior hiring across ESG strategy, AIF/PMS compliance, and digital wealth functions, areas that didn’t even exist at scale a few years ago. To support this evolution, we’ve strengthened our internal skilling stack using AI-led assessments, microlearning formats, and mobile onboarding, all geared towards faster, regionally attuned deployment.” Added Mr. Karthikeyan Kesavan (KK), Director and Head of Business – Permanent Recruitment, Adecco India

The heartland of India is emerging as a powerful engine of talent demand in the BFSI sector, with nearly 48% of new roles now originating from Tier II and III cities. As financial literacy deepens and investment awareness spreads beyond metros, the demand for permanent, locally based professionals is poised to accelerate. Diversity also remains a key focus, with hiring of underrepresented groups in these regions projected to grow by more than 30%. Adecco India is strategically positioned to support this shift, enabling financial institutions to access high-quality talent and build future-ready, inclusive teams across the country.