Synopsis: There's a growing demand for personnel in India's banking and financial sector to sell credit cards and loans, despite regulatory constraints and a slight downturn in loan growth. Staffing service firms report a significant increase in frontline sales job openings, with an estimated hiring of 25,000-30,000 personnel in the coming quarter.
Despite the Reserve Bank of India's caution on unsecured loans and the slowdown in personal loan growth observed in February, the demand for personnel to promote credit cards and loans is steadily rising in India.
Staffing service firms and executives from the banking and financial sector report a significant surge in frontline sales job openings compared to the previous year, estimating a hiring spree of 25,000-30,000 sales personnel in the April-June quarter to meet the escalating demand in the retail and unsecured loan segments.
Kartik Narayan, Teamlease Services' Chief Executive of Staffing, notes a 14-15% increase in demand for staffing in credit card and personal loan sectors, reflecting intense competition among banks and NBFCs to enhance market share, especially in mid- and large-ticket consumer credit categories.
Meanwhile, Lohit Bhatia, President of Workforce Management at Quess Corp, observes a growth of 15-20% in the credit card and personal loan segment, driven by increased credit card penetration and rising EMI purchases, which is expected to sustain.
Although the RBI's data shows a slight moderation in the year-on-year growth of unsecured personal loans in February, experts like Abheek Barua, HDFC Bank's Chief Economist, emphasize the long-term opportunities in retail and unsecured loans for banks, necessitating adequate manpower to tap into these markets.
While acknowledging the cyclical nature of RBI's guidance, Barua stresses the importance for banks to leverage credit cards and personal loans strategically while adhering to risk management protocols.
Madan Sabnavis, Chief Economist at Bank of Baroda, underscores the underpenetrated nature of credit card and personal loan markets in India, signaling substantial room for growth amidst increasing consumption levels and the proliferation of online and e-commerce transactions.
With outstanding credit card loans comprising a mere 1.6% of banks' overall loan portfolios, Sabnavis highlights the immense potential for expansion in this segment, further emphasizing the need for banks to bolster their workforce accordingly.
In conclusion, despite regulatory cautions and a temporary slowdown in certain loan segments, the demand for personnel to promote credit cards and loans in India is experiencing a notable surge. This trend underscores the ongoing competition among financial institutions to capture market share and meet the evolving needs of consumers.
With experts emphasizing the long-term opportunities in retail and unsecured loans, banks and NBFCs must strategically leverage these offerings while prioritizing risk management practices. As the Indian market continues to witness rising consumption levels and increased adoption of digital transactions, the expansion potential in credit card and personal loan sectors remains substantial, necessitating proactive staffing strategies to capitalize on this growth trajectory.
