Morgan McKinley And Vacancysoft Risk And Compliance Report: Fintech Overtakes Banks In Risk Hiring As Sector Surges 26% - Governance Investment Rebalances As Fintech Eclipses Banks

• Risk and Compliance hiring in fintech up 26% year-on-year
• Banks cut oversight teams as cost pressures rise
• Demand shifts to Financial Crime and Credit Risk roles
• London remains dominant, but hybrid hiring gains traction

Fintech firms now account for over a fifth of all Risk and Compliance roles in the UK, up from just 12% in 2023 as the sector recorded its second consecutive year of double-digit growth with vacancies up 26%, according to the latest Morgan McKinley and Vacancysoft Risk and Compliance report. Meanwhile, traditional banks have cut hiring for another year, down 1% as cost pressures intensify.

This represents fintech's second consecutive year of double-digit growth in Risk and Compliance hiring, following a similar surge in 2024. Traditional banks, by contrast, have reduced hiring by 1% - another year of decline that reflects the sector's ongoing consolidation.

Speculation around the reintroduction of the higher Bank Surcharge, combined with operational pressures from regulatory reforms, has prompted many banks to reassess spending. In a sector where oversight is among the largest controllable costs, Risk and Compliance has become a target for rationalisation. Fintechs are still building their regulatory frameworks, particularly as supervisory expectations intensify.

"The contrast in the Risk and Compliance market couldn't be starker," said Ben Harris, Associate Director at Morgan McKinley. "We're seeing large-scale redundancies at bulge bracket banks who are streamlining their product offerings and leveraging technology to trim compliance departments, while mid-tier firms and fintechs are actively hiring especially in financial crime where regulatory pressure has made it the busiest area of recruitment across the governance space."

Compliance gives way to specialist risk functions

The hiring mix across Risk and Compliance is  shifting dramatically. In fintech, while compliance remains the largest function, its growth has slowed sharply, rising by 9% this year. Instead, demand has surged in Financial Crime, up 52%, as firms respond to increased regulatory scrutiny and recent enforcement actions. Credit Risk roles have also grown dramatically, rising by nearly 200%, reflecting the need for more sophisticated credit modelling as consumer lending platforms evolve.

In traditional banking, compliance hiring has fallen sharply, down more than 30% in 2024, with further reductions continuing into 2025. Instead, hiring is shifting towards risk analytics. Credit Risk and Risk Management roles are seeing strong growth, while Operational Risk and Risk Controls continue to contract. The market is moving away from routine oversight and towards governance structures grounded in predictive capability and data intelligence.

London leads, but regional and hybrid models gain pace

Regionally, hiring remains highly concentrated in London. In fintech, the capital now accounts for more than 74% of all Risk and Compliance roles, consolidating its status as the UK’s regulatory and innovation hub. Challenger banks and digital finance platforms continue to scale their operations in the capital, supported by a growing pipeline of regulatory professionals.

Elsewhere, the landscape is mixed. The North has recorded a sharp rise in fintech hiring, up nearly 85%, while Scotland has posted similarly strong gains. These increases reflect a wave of decentralised investment, particularly among mid-tier firms. However, other regions are seeing contraction. The South, Midlands and Wales all report declining or stagnant hiring, while Northern Ireland has fallen out of the dataset entirely.

The most notable development is the rise in vacancies listed under “various locations”, which have surged by 170% this year. This suggests that remote and hybrid governance models are gaining traction, particularly in the fintech sector, as firms distribute second-line functions across multiple geographies without committing to fixed office sites.

Top 5 Companies, Risk & Compliance, 2023 - 2025 *Est, UK

Background

 To download the report on Risk & Compliance by Morgan Mckinley and Vacancysoft please click here.

• The data contained within the report is gathered solely and specifically from the career pages of company websites, not job boards.
• Before publication, job postings are de-duplicated and verified as unique.  Every vacancy is assigned up to 20 data points through Vacancysoft’s proprietary algorithm, which is double-checked for validity by a data quality control team.