NBFC (Non-Banking Financial Services)

Non-Banking Financial Services: The Catalyst for India’s Economic Growth

Non-banking financial institutions, otherwise referred to as NBFIs, are a class of heterogeneous financial intermediaries that act, in a predominantly bank-based financial system, as an alternate channel of credit flow to the commercial sector. NBFCs have grown exponentially over the last ten years. Such growth can be attributed to broader macro-economic trends and institutional demand.

Commenting on the overall contribution of NBFCs to the Indian economy, Nitin Jain, Partner, Financial Services at PwC India, writes, “There is no denying the role of the non-banking financial company (NBFC) sector in the growth that India has experienced over the last couple of years.”. NBFCs have been instrumental in providing formal credit to the under-served retail and MSME segment, thereby increasing their contribution to India’s overall GDP.” He further adds, firmly believes that a healthy NBFC sector is key to maintaining India’s growth momentum and achieving the target of a USD 5 trillion Indian economy by 2024.

However, there is good recognition that due to the liquidity crunch, non-banking financial services are fighting a losing battle. NBFCs have several times tried to be resilient to such downturns by innovation in business. According to a report by CRYSIL, “Going forward, NBFCs would have to recalibrate their strategies to deal with the changing dynamics of the business.” This means every NBFC organization needs to bring in a renewed focus on all aspects of the business, including their people’s strategy, to ensure the right organizational frameworks are set up for long-term business excellence.

The NBFC sector requires highly skilled talent to achieve business excellence. After a few momentary challenges recently, this sector is back, full-blown, and grows at an increasing rate with each quarter. During the last ten years, PACE Recruit has developed the necessary infrastructure and expertise to offer much-needed talent management support in this complex, dynamic sector. We will recruit for highly skilled professionals, from newly qualified candidates through to top executives, on either a permanent or contract basis, whichever fits the needs. We have worked with some of the most recognizable faces in the industry. Our client base has comprised all major NBFC players, investment houses, and rating agencies. We are a highly regarded consultancy in NBFC and always rank among the best recruitment agencies in Non-Banking Financial Services.