Increase in Finance Sector Creates Jobs in India
For India’s rural youth, employment opportunities in the banking and finance sectors are showing great promise. Many big banks are looking to rural areas of India to recruit large numbers of staff, whilst private banks have already been seeking staff from less populated areas of the country (tier 3-6) for the past few years, forming 50-80% of their total recruitment.
Rise in Rural Recruitment
The future’s looking bright for banking recruits in India, where there are expected to be 12,000 people hired this year alone to work in the finance sector. Officials state that much of this recruitment initiative will take place in semi-urban and rural locations – mainly tier 4 and 5 areas. The rationale for recruiting rural staff locally is that they are already acquainted with the geography and demography of the area. By concentrating on hiring banking staff at a local level, it can achieve two things. As well as providing much-needed employment to areas that may be developing or may lack many alternative job opportunities, it also enables banks to take advantage of gaining local knowledge, which can be beneficial for improving customer service and relations.
Such a change in India’s banking recruitment policies has happened fairly swiftly. Just a few years ago, most of the banks were hiring from the biggest cities, or tier 1 locations. Increasingly, the banks are turning away from these large conurbations and seeking new recruits from smaller, more rural places. Experts believe this trend is likely to continue.
Excellent Potential for the Banking Sector
With more jobs available in the banking sector, data has also shown that youth in India are prepared to move locations in order to find employment. It is believed that more than 22 million young people in India are willing to move over the next ten years from rural belts to urban areas to seek employment. This offers great opportunities for the banking and finance sector, both for the rural youth in India and the businesses themselves looking to recruit eager workers willing to learn. Although there is a growing need for banking professionals both in India and worldwide at all different levels, rural recruitment may be considered more expensive for some mid-level positions, as many of these workers may have already migrated to the bigger cities. This can prove a challenge and an opportunity for banks, yet financial institutions are increasingly relying on workers who have extensive local knowledge and networks, so they may be willing in these instances to pay more for the right person.
Wherever a company decides to look for new staff, research suggests that, overall, recruitment in India’s banking sector is likely to rise by 25% this year compared to last year. This is primarily due to a growing economy and positive global outlook, stable government, improved business sentiments and policy overhauls. Growth in jobs available in banking and finance is forecast to be at all levels, although entry-level and middle-management positions are likely to be the most prevalent.