New Delhi | 3rd June, 2025: India’s Banking, Financial Services, and Insurance (BFSI) sector has firmly established itself as a $2 trillion economic engine, leading the country’s digital payments boom with transaction volumes exceeding $10 trillion in 2024. But a new report released by Hunar.AI reveals that this impressive growth is shadowed by an escalating frontline workforce crisis marked by unprecedented attrition, persistent hiring delays, and widening skill gaps.
“The BFSI sector’s rapid digital evolution has made it India’s largest corporate employer, but high frontline attrition and a persistent skills gap threaten its growth trajectory,” said Krishna Khandelwal Co-Founder & CEO Hunar.AI. “With AI adoption at 68%, BFSI is not only leading India’s digital transformation but is also at the forefront of reimagining workforce recruitment and retention.”
According to the Hunar.AI 2025 report, more than 60% of all transactions in the sector are now digital, reflecting strong progress in tech adoption. BFSI has also surpassed the IT industry to become India’s largest corporate employer, with nearly 2 million people working in listed companies. However, this success story is being undermined by severe talent instability on the frontlines. Attrition rates in frontline roles have reached 103%, with non-bank lenders and insurance firms reporting rates of 77% and 62%, respectively. Even minor salary hikes—sometimes as little as ₹1,000 per month—are triggering frequent job switches among entry-level staff.
Recruitment delays are further compounding the problem. Nearly 60% of HR teams report that it takes between 15 to 60 days to fill open roles, creating operational strain and increasing hiring costs. Legacy recruitment playbooks are proving ineffective, especially with only half of applicants meeting basic qualifications. Communication, analytical, and digital readiness remain key gaps. The report also highlights that only 30% of the sector’s workforce is female, with field roles showing even lower representation.
Despite these workforce challenges, the BFSI sector is leading the way in AI adoption, with 68% of companies integrating AI tools across operations. Hunar.AI’s proprietary voice agent technology is helping address the hiring crisis by cutting recruitment cycles by up to 75%, significantly reducing costs, and improving candidate engagement. Organisations using AI-driven channels like WhatsApp and voice bots have reported up to 82% higher response rates and 100–250 man-hours saved per month.
As the sector continues to scale, the Reserve Bank of India has flagged high attrition as a “significant operational risk,” warning of disruptions in customer service and long-term ethical implications. The Hunar.AI-2025 report underscores the urgent need to modernise frontline hiring systems to match the pace of digital growth.
