Global: Fintech Growth Drives Surge in Risk and Compliance Hiring Amid Decline in Traditional Banking Roles

The UK labour market for risk and compliance professionals is experiencing a notable shift, with fintech companies compensating for a projected decline in demand within traditional banks. According to the latest report by recruitment agency Morgan McKinley and market data analyst Vacancysoft, risk and compliance vacancies in banks are forecast to drop by 17% in 2024 as institutions focus on market stabilization.

In contrast, fintech firms are expected to increase their hiring by 28%, adding approximately 1,000 new roles in 2024. This surge highlights the sector’s growing need for robust compliance and risk management practices as regulatory scrutiny intensifies.

Within fintech, compliance roles are predicted to rise by 56%, accounting for 28% of all compliance-related positions. Risk management vacancies will see a remarkable 115% year-on-year increase, reaching 122 roles and representing 12% of the sector’s compliance opportunities. Additionally, Know Your Customer (KYC) positions are set to nearly double, with a 98.4% increase, comprising 10% of compliance-related vacancies. Financial crime roles, while expanding by 16%, will see a slight reduction in their overall share from 19% in 2023 to 17% in 2024.

Conversely, traditional banking is set to see declines across the board in risk and compliance hiring. Compliance vacancies are projected to fall by 29% to approximately 1,151 roles, while risk management positions will decline by 9%, maintaining a 13% share. Financial crime roles will see a smaller decrease of 6%, retaining a 10% share of vacancies. Credit risk roles face the steepest reduction, with a 16% drop to approximately 421 vacancies.

Geographically, Greater London is poised to lead the recovery in risk and compliance hiring, with a 72% year-on-year increase to approximately 738 roles, rebounding from a 50% decline in 2023. London’s share of the UK’s risk and compliance vacancies is expected to rise from 55% in 2023 to 72% in 2024, driven by fintech growth and improved economic conditions encouraging investment in the sector.

This trend underscores the increasing professionalization of risk and compliance within fintech, reflecting the sector’s maturing response to regulatory demands and its growing influence within the financial ecosystem.