India's fintech sector has seen a meteoric rise, with reports estimating it will reach a market value of $150 billion by 2025, driven by a surge in digital financial services and innovations. The growth is not only in startups but also in the expansion of Global Capability Centers (GCCs), which have witnessed a 25% increase in hiring within the last two years. As the demand for specialised fintech talent continues to outpace supply, companies like Finastra are leading the charge in nurturing this ecosystem.
In this conversation with Raja Vasudevan, Global Head, Talent Acquisition & Head of India, People & Communications at Finastra, we explored how the organisation is adapting to this dynamic landscape. Raja discussed the evolving strategies for talent acquisition, the importance of skill-based hiring, and how Finastra is shaping the future of finance through innovation, while also providing insight into the broader transformation occurring in India’s fintech GCCs.
Q/ How does Finastra's mission of ‘redefining finance for good’ translate into your hiring strategies? How do you attract and retain the right people to drive innovation at Finastra?
It all starts with workforce planning. Even before the talent team begins the hiring process, we focus on what skills are needed. We start by looking at workforce planning and talent mapping. This strategy aligns well with our overall employer planning and also helps us think about the flexibility we can offer potential candidates in today’s work environment.
We also believe that sticking only to industry-based experience isn’t always necessary. The world is changing, and we focus more on skills rather than experience. So, expanding our talent pipeline is key. And it's not just about bringing in external talent—we also prioritise internal talent. Upskilling and reskilling are crucial if we want to stay ahead in this evolving landscape.
Eventually, we aim to move completely towards skill-based hiring. For instance, right now, very few companies hire purely based on skills. Often, we just replace someone with someone else, without considering the actual skill gap. The focus should be on the specific skill needed, not just replacing the person.
We also make sure that our talent acquisition team is prepared to move quickly. In today’s fast-paced market, automation plays a big role in identifying process gaps and streamlining how we bring in external talent.
Q/ You mentioned the readiness of talent in recruitment teams. Could you elaborate on the challenges organisations are still facing, particularly the roadblocks?
While India has the supply of talent, the demand is outpacing supply. More importantly, the quality of that supply is a big factor. This is where we face a challenge as a country, we’re still relying on traditional education systems. If we don't modernise our approach, we could find ourselves in a difficult position.
There needs to be a stronger partnership between industries and universities. Industry-relevant courses should be introduced, and universities should prepare students with skills that are needed on day one. I’m not saying training isn’t important, but a significant portion of the learning could happen while students are still in school. We need both sides to collaborate more closely.
Mr. Vasudevan highlights the fresh perspectives and meaningful work the new generation looks for. He notes, “When I started my career 15-16 years ago, all we wanted was a job. Today’s younger generation isn’t just looking for a job; they want to know what value the company can add to their lives. They care about the support system the organisation provides, especially in terms of learning and work-life balance.
Raja appreciates the preparedness of this generation and the homework they do before joining an organisation. “They’re already doing extensive research about a company’s values, work culture, and what they offer. This shift is forcing companies to adapt. We also partner with universities and engage with students from their second and third years to ensure we’re on the same page.”
Q/ What do you think have been the key pillars of Finastra's retention strategies?
Raja: One of the main pillars is upskilling and reskilling. We focus heavily on developing our existing talent, which is at the core of why people stay. Benefits also play a significant role, but I’m not just talking about money. We offer a lot of flexibility—there’s no upper limit on leave, for example. The conversation is more between the manager and employee about what works for them.
We also have one of the best hybrid work cultures in the industry. Career growth and learning opportunities are integral to our retention strategies.
Q/ Let’s switch gears and talk about how Finastra is supporting smaller financial institutions and enabling innovation. How does this compare to more established banks with bigger setups?
At Finastra, we actively support smaller financial institutions by providing them with advanced technology solutions. Our mantra is about reducing their investment burden while offering cutting-edge solutions that help them innovate.
We’ve formed partnerships with several tech providers, which help address the challenges smaller businesses face in accessing formal financial services. We focus on personalised finance options, which are much more dynamic than traditional commercial loans. This is where we make an impact—whether we’re working with major banks like SBI, HSBC or smaller players.
In markets like South Asia, Japan, and Singapore, we’re seeing strong growth, and the SMEs we hire are crucial in shifting traditional products to modern, scalable solutions.
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Q/ What skills have become more critical in the fintech industry, especially in the context of AI, cybersecurity, and the modernisation of products?
Raja: Across the financial industry, the demand for specialised skills has surged, particularly in AI and cybersecurity. The percentage of recruiting in these areas has jumped significantly.
AI has seen an increase of 50 to 60%, while cybersecurity recruiting stands at around 25 to 30%. This trend is true for Finastra as well. When compared to other industries, like engineering or manufacturing, change is harder to implement because those sectors are more process-driven with set rule books. However, in fintech, companies are eager to modernise the moment they spot new opportunities.
For instance, in the banking sector, which has traditionally been resistant to change, fintech companies are taking bold steps towards modernisation, and that's where Finastra plays a crucial role.
Our focus is on modernising our products without disrupting the customer experience. To achieve this, we offer both existing and new solutions, allowing customers to use both concurrently while gradually transitioning to the new versions. This balanced approach minimises disruption and highlights the value of modernised solutions.
I can also link this back to the way our Talent Acquisition (TA) team operates. It's not just about recruiters and HR folks—it’s a holistic approach to workforce planning. As we move forward with product modernisation and development, our talent team plays an essential role in ensuring we have the right skills in place to support these strategic shifts.
Q/ As organisations evolve, are they ready to embrace skills-based hiring? Are job descriptions changing to reflect that?
Definitely. In the past, companies would often set strict requirements like “must have a degree” or “must have X years of experience.” But now, especially in fintech, the focus has shifted. Most companies, including Finastra, no longer have rigid educational requirements.
Instead, we focus on the skills and experience that matter most for the role. We believe in upskilling and reskilling people to meet the job requirements, so education isn’t a barrier. This change is happening fast, especially in fintech, where agility is key.
According to Raja, for Indian fintech companies to bolster India’s growing stature as a Global Capability Center (GCC) hub, it is crucial to attract greater investment from global players while also focusing on developing fresh talent.
"We need to increase our investment in academic partnerships and research. As a country, our R&D investment is not enough, and that needs to change if we aim to stay competitive on the global stage," he emphasises.
