Fintech growth reshapes risk and compliance hiring landscape

The UK job market for Risk and Compliance roles is undergoing a significant transformation, with the fintech sector leading the charge.  According to the latest UK labour market trends for Risk and Compliance report by leading global professional recruiter Morgan McKinley and market data analyst Vacancysoft, the risk and compliance vacancies within the banks is projected to experience a 17% drop in vacancies in 2024 as banks focus on stabilisation in response to shifting market conditions.  However, there is set to be an increase of 28% in vacancies for risk and compliance professionals in fintech companies . This sector is set to see 1,000 new roles in 2024, underscoring the growing demand to professionalise compliance and risk management as fintechs continue their rapid expansion.

The report highlights that geopolitical and regulatory challenges could reignite demand for specialised risk roles in 2025. As organisations navigate evolving market risks and heightened scrutiny in an increasingly dynamic global landscape, the need for skilled Risk and Compliance professionals is expected to rise.

The fintech sector is experiencing significant growth, with compliance positions set to rise by 56% in 2024, comprising 28% of all compliance-related vacancies. Financial crime roles are anticipated to increase by 16% year-on-year, although their share of vacancies is expected to drop slightly, from 19% in 2023 to 17% in 2024. Risk management roles are poised for notable expansion, with a 115% year-on-year increase, reaching 122 vacancies and representing 12% of the sector’s compliance positions. Know Your Customer (KYC) roles are also thriving, with a projected 98.4% rise in vacancies, accounting for 10% of fintech compliance opportunities

In contrast, compliance and risk-related roles within traditional banking are projected to decline. Compliance positions are set to decrease by 29% year-on-year with vacancies falling to approximately 1,151. Risk management positions will experience a decline of 9% year-on-year, maintaining a 13% share of vacancies. Financial crime roles will see the smallest decline at 6%, holding a 10% share of vacancies. Credit risk positions are expected to face a significant reduction of 16% year-on-year, with approximately 421 vacancies.

Regional insights: London powers ahead

Greater London is expected to see the largest increase in Risk & Compliance vacancies in 2024, with a 72% year-on-year rise, reaching approximately 738 roles. This marks a recovery after a 50% decline in 2023. London’s share of vacancies is projected to grow from 55% in 2023 to 72% in 2024, driven by Fintech advancements and economic stability boosting investment.

In contrast, the North of England will see a 42% decline, reducing its share to 6%. The Midlands is projected to drop by 30%, while the South of England faces a 26% decrease, with vacancies falling below 100 for the first time since 2022. Wales sees the smallest decrease at 22%.

Ben Harris, associate director, head of governance, compliance, risk, internal audit recruitment, recruitment solutions, Morgan McKinley comments: “The compliance and risk market faced significant challenges throughout 2024, driven by stagnant UK economic growth, high interest rates, and political uncertainty surrounding a new UK government and the US presidential election. These factors led many businesses to tighten budgets and scale back hiring, further compounded by redundancies at bulge-bracket banks in early 2024. Additional, constrained budgets led firms to implement hiring freezes reversing post-Covid overhiring, leaving candidates with fewer opportunities despite their expertise. Signs of recovery emerged in the latter half of 2024, particularly in Compliance, where new roles started to appear. Nevertheless, the influx of applications from candidates affected by redundancies caused recruitment processes to slow with banks adopting a cautious and selective approach, extending hiring timelines and selecting candidates before making offers. In this uncertain climate, there has been a noticeable shift toward short-term contract hiring over permanent roles, as firms prioritise flexibility and reduced long-term costs.”

“Looking ahead to 2025, there is growing confidence across banks and financial services firms. An increase in job openings toward the end of 2024 suggests that this positive trend will continue, with momentum expected to accelerate into 2025 from Q2 onwards.”

Investment banks surge in vacancies for 2024, while retail banks decline

Notable growth is expected from Citi (46%), Goldman Sachs (34%), and Visa (30%), reflecting their investments in Risk and Compliance capabilities. Meanwhile, Fintech’s sole representative among the top 20 recruiters, Starling Bank, shows signs of stabilising hiring following its 2023 surge driven by regulatory fines.

The report underscores how shifts in market conditions, from inflation to geopolitical tensions, are reshaping the demand for Risk and Compliance professionals across the UK.

 Top 5 Company Table

Top Companies, Banker, Risk & Compliance, UK 2022 – 2024 (Jan-Oct) (see report for Top 20)

1. 1.  

28/11/2024