Why Graduates from Tier 2 and Tier 3 Cities Are Choosing Careers in the Banking Sector

The demand for jobs in the BFSI sector grew by 30% in Tier 2 and Tier 3 cities (Source). To many graduates outside metropolitan cities today, banking is no longer a far-off dream but a realistic as well as impactful career choice.

The sector’s presence in these small cities opens entry points in retail banking, insurance, NBFCs as well as microfinance, which offer decent salaries, a well-defined progression path along with work that contributes to the local community. This begs the question – is banking a good career? Well, students are increasingly aiming for courses that translate classroom learning into job-ready skills for the banking sector.

UNext Manipal Academy of BFSI stands as their bridge – industry-aligned courses, hands-on simulations, internships and pay-after-placement facilities make BFSI careers within reach and desirable for Tier 2 and Tier 3 India graduates.

Let’s now look at why graduates from Tier 2 and Tier 3 cities are increasingly choosing careers in the banking sector.

The Rise of BFSI Opportunities Outside Metros

The Indian BFSI is growing rapidly, with retail lending reaching INR 34 trillion in FY22, up 12% YoY (Source). The demand for frontline and back-office talent is shifting to smaller cities. UNext MABFSI aligns student learning with these opportunities through partner-led curricula and placement pathways that place learners directly into the expanding local markets.

Why Students from Tier 2 and Tier 3 Cities Are Attracted to Banking Careers

Approachable career prospects –

Banking jobs are now available at the local level. Currently, high-demand jobs include sales and relationship management, credit procurement, debt recovery, back-office operations as well as IT/data security.

For graduates, that means immediate entry points into the sector after college without the expense of relocation. UNext MABFSI’s Axis Bank Young Bankers and Axis Bank Operations Program, for example, prepare learners for branch-level customer servicing and operations.

Economic empowerment & stability –

Banking jobs come with competitive starting pay, benefits and structured career ladders. For many families in Tier 2/3 cities, this is a game-changer. UNext MABFSI’s job-assured programs with pay-after-offer letter model reduce financial risk for learners, enabling them to invest in upskilling with employment outcomes.

Impactful community work –

Graduates in the fields of microfinance, retail lending, and NBFCs directly contribute to local enterprises and households by increasing access to housing loans, small-business credit as well as insurance.

At UNext MABFSI, programs focus on imparting practical skills related to lending, client management and risk assessment. Opting for a career in BFSI is both a professional choice and a social contribution, as students become agents of financial inclusion in their hometowns.

Skills That Translate to BFSI Roles

Here are the essential skills required to get into the BFSI sector, irrespective of whether one comes from a Tier 1, 2 or 3 city –

1. Technical & banking skills

• Knowledge of banking operations such as deposits, loans, KYC, payments, regulatory compliance, and more.
• Credit and loan management which involves assessing creditworthiness and management of housing/LAP/personal loans.
• Insurance fundamentals, including policies, underwriting and claims.
• Customer relationship management-client engagement, upselling and grievance resolution.
• Digital banking and FinTech knowledge — UPI, mobile banking, wallets.

These topics are taught extensively in the Axis Bank Operations Program, Axis Bank Young Bankers Program and Kotak Ignite Programme – LAP, offered by the UNext Manipal Academy of BFSI.

2. Analytical & cognitive skills

• Financial analysis, reporting and data interpretation
• Risk assessment and compliance – RBI/Bank norms.

This is covered thoroughly in Axis Bank Young Bankers and Equitas Small Finance Bank Ignite Program[1] [2] , provided by the UNext Manipal Academy of BFSI.

3. Soft skills

• Communication and negotiation – explaining products, persuading, conflict resolution
• Time and task management – prioritising work in fast-paced environments
• Teamwork and leadership – leading teams, collaborative work

Role of Tier 2/3 Cities in the BFSI Workforce

Tier 2 hubs like Jaipur, Chandigarh, Coimbatore, Surat, Ludhiana, Indore and Amritsar, along with Tier 3 centres like Patiala, Bhatinda, Meerut, Jamnagar and Trichy, are coming up as growth engines for BFSI.

This is driven by an expanding middle class, a growing requirement for housing and personal loans, along with concerted financial-inclusion efforts by banks and NBFCs. Government and private skilling initiatives further accelerate readiness.

How Skilling with UNext MABFSI Bridges the Gap

Academic degrees rarely touch upon operational realities of banking. Employers want graduates capable of managing transactions, making sense of credit data and offering service from Day 1.

UNext MABFSI does this through industry-co-created curricula, programs such as HDFC Bank Future Bankers 2.0, which mimic branch and sales environments, mandatory internships along with assessment-driven shortlists for recruiters.

The job-assured programs and provisional offer letters ensure that the training is directly linked to hiring; students train to perform a certain role that they will actually do, removing the gap between academic learning and practical banking work.

With an legacy of 17+ years and partnerships with 50+ BFSI organisations, the advantages of upskilling with UNext MABFSI include –

• Job-assured programs with provisional offer letters + placement support.
• Co-created with industry experts; certified by Manipal Academy of Higher Education.
• Programs for fresh graduates and career changers.
• Hands-on internships and industry exposure for practical learning.

Empowering the Next Generation

People from Tier 2 and Tier 3 cities are actively opting for careers in the BFSI sector because of its high profitability and fulfilling nature; professional banking and insurance programs nowadays offer clearly defined pathways to employment.

UNext MABFSI provides mentorship, simulation-based assessments as well as soft-skill training, ensuring learners step into jobs with competence and confidence. Their benefits go beyond the individual – graduates acquire financial independence, supplement family incomes and help spread financial literacy in their native communities.

Conclusion

So, why choose banking sector oriented jobs? For many young professionals, a BFSI sector job is a stable career path and also a means to achieve tangible social change in their hometowns.

With entry-level BFSI roles also increasing manifold across Tier 2 and Tier 3 India, this is the best time to take a fresh leap into the banking career. Graduates with technical, analytical and interpersonal skills will thus be in the strongest position to capitalise on this rising demand.

UNext Manipal Academy of BFSI offers industry-aligned programs, practical training and job-assured pathways that bridge the gap between education and employment. So, if you are a graduate from a Tier 2 or Tier 3 city, willing to build a stable and impactful career in banking, take a look at UNext MABFSI’s courses and start your risk-free journey to a lucrative career in banking today.