Risk and Control Roles to Dominate BFSI Leadership Hiring in 2026: Venator Search Partners

Leadership hiring across India’s BFSI sector is entering a consolidation phase, with institutions signalling a clear shift towards stability, risk management and governance as they prepare for 2026, as per a survey conducted by Venator Search Partners, a retained executive search firm. 

The leadership mix in 2025 sends a clear message for the year ahead with  Chief Risk Officers making the most sought after function outside the CEO role. When combined with Chief Compliance Officers and Chief Financial Officers, control functions represented 22.4 percent of the total leadership replacement cohort. This concentration indicates that nearly one quarter of senior leadership bandwidth is focused on safeguarding asset quality, capital adequacy and regulatory compliance, a trend expected to continue through 2026.

Venator Search Partners came out with the findings after tracking 76 leadership movements at MD and CEO plus other CXO levels across 16 large NBFCs and HFCs during 2024 and 2025. Of these organisations, 6 were NBFCs and 10 were HFCs, including 9 listed and 7 unlisted companies, representing a significant share of India’s retail and wholesale credit ecosystem.

One of the most significant developments in 2025 has been the noticeable turnover at the top management level. The data shows that there have been multiple transitions of Managing Directors (MDs) and Chief Executive Officers (CEOs), emphasizing how the role has become increasingly demanding. Heightened regulatory scrutiny, pressure on unsecured portfolios, and rising expectations from boards have collectively raised the standards for leadership performance. This trend reflects the broader corporate environment in India, which recorded 141 CEO exits in FY25, compared to 119 in FY24. This further reinforces the perception that leadership tenures are becoming shorter and more results-oriented.

Hiring strategies across BFSI institutions show a careful balance between continuity and change. 55.3 percent of leadership roles were filled through internal promotions, while 44.7 percent were external hires, indicating confidence in internal talent pipelines alongside selective external hiring. Notably, 6 of the 16 organisations relied entirely on internal promotions, while 2 organisations adopted a 100 percent external hiring approach, pointing to strategic resets rather than routine succession.

When institutions did look outside, they stayed close to familiar ground. 58.8 percent of all external hires came from the banking sector, while 29.4 percent were sourced from other NBFCs or HFCs. This underscores the premium placed on regulatory understanding and credit experience, particularly as asset quality concerns remain top of mind.

Beyond control roles, business leadership hiring reflects a recalibration of priorities. Business Heads and Product Heads accounted for 26.7 percent of leadership movements, signalling a shift away from growth led expansion towards portfolio resilience. These leaders are increasingly tasked with improving loan mix, strengthening secured lending and protecting margins amid elevated funding costs.

Operational efficiency has also moved up the agenda. People and Operations roles represented 24.4 percent of leadership appointments, highlighting a transition from large scale hiring to productivity and cost optimisation. Operations teams are being reshaped around digital processes, while HR leadership is focusing on specialised skills in underwriting discipline, fraud management and digital collections.

Women made up just 14.5 percent of leadership moves, or 11 of 76 appointments, despite a 100 percent step up rate, underscoring strong merit based progression but limited senior level representation.

Professional diversity also remains constrained. 87.8 percent of leaders came from financial services, including 39.2 percent from banking and 33.8 percent from NBFC or HFC backgrounds, while only 12.2 percent were drawn from non financial sectors, reinforcing the sector’s preference for domain familiarity over cross industry hires.

Commenting on the outlook, Deepraditya Datta, Founder of Venator Search Partners, said, “Leadership hiring today reflects a sector that is prioritising discipline over disruption. Boards are signalling that resilience, judgement and regulatory comfort will define leadership success over the next cycle.”