Paytm's regulatory setback sparks talent acquisition battle in Fintech: Rivals eye company's top professionals

By Sunita Iyer | First Published Feb 6, 2024, 3:42 PM IST

Recruitment services firms have reported a surge in interest from Paytm employees exploring new opportunities, particularly in tech and sales roles.

In the ever-evolving landscape of India's fintech industry, the recent regulatory scrutiny on Paytm's payments bank unit has not only led to business opportunities for its competitors but has also triggered a talent acquisition race. Rival companies are strategically eyeing professionals from Paytm, leveraging the central bank's crackdown as a gateway to strengthen their teams.

Recruitment services firms have reported a surge in interest from Paytm employees exploring new opportunities, particularly in tech and sales roles. However, a notable trend reveals a lesser demand for legal and compliance professionals, especially in senior and mid-level positions. While companies officially deny actively pursuing Paytm talent, insiders acknowledge the ongoing recruitment battle.

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Also read: RBI's action on Paytm payments bank: Here's what Paytm wants users to know

Phonepe, a prominent competitor of Paytm, disclosed plans to expand its sales teams to cater to rising demands from merchants. Although they hinted at the possibility of hiring business development executives from Paytm, they clarified that they are not actively soliciting CVs. Similarly, MobiKwik expressed efforts to recruit new talents from diverse industries without specifying details, emphasizing a broad-based approach to talent acquisition.

Bankbazaar took a stance against discrimination, asserting that their hiring decisions are solely based on individual capabilities, irrespective of their previous employers. However, recruitment services firms have observed heightened interest in Paytm's talent pool. Michael Page, a leading recruitment agency, reported inquiries from multiple unicorns and startups in the fintech, e-commerce, and direct-to-consumer (D2C) sectors.

The demand for Paytm's product and technology professionals is particularly noteworthy, reflecting the industry's appetite for top-notch tech talent. Pranshu Upadhyay, regional director at Michael Page India, highlighted the significant interest in compliance teams and the challenges faced by professionals in legal and compliance roles.

“Product and technology professionals at Paytm are hot in demand as they make for excellent tech talent … we have seen in the past that when such an instance happens, compliance teams, in particular, face a tough task ahead. However, the impact still needs to be seen with Paytm,” Pranshu Upadhyay - regional director at Michael Page India was quoted in Economic Times.

CIEL HR Services reported a threefold surge in activity from Paytm employees on public job boards, showcasing a proactive approach from individuals in sales, business development, channel management, product management, and various tech roles. Conversely, professionals in operations, legal, and compliance roles encounter hurdles in finding favorable market opportunities.

Also read: RBI bars Paytm Payments Bank from accepting deposits after February 29

While resumes from legal and compliance professionals are not outright rejected, the market dynamics suggest a preference for strengthening risk, compliance, and legal departments in non-banking financial companies (NBFCs) and fintech firms. Leadership and senior management roles, in particular, demand individuals with a proven track record in key responsibility areas.

As the fintech talent wars escalate, industry players are strategically positioning themselves to capitalize on the shifting dynamics, underscoring the critical role that talent acquisition plays in maintaining a competitive edge in the rapidly evolving fintech landscape. The aftermath of Paytm's regulatory challenges serves as a catalyst, reshaping the talent landscape within the industry.

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