R&C – UK Legal Labour Market Trends, November 2025
FinTech Outpaces Traditional Banks in Risk and Compliance Hiring
Key findings include:
- Risk and Compliance hiring in FinTech up 26.2% 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
DOWNLOAD THE REPORT
DOWNLOAD THE REPORT
Governance investment rebalances as FinTech eclipses banks
The Risk and Compliance labour market is undergoing a structural shift, as FinTech firms continue to expand while traditional banks consolidate. In 2025, FinTech has recorded its second consecutive year of double-digit hiring growth, with vacancies up by 26.2%, following a similar increase in 2024. In contrast, banking has seen another year of decline, albeit more modest at 1.0%. This divergence has reshaped the hiring landscape: FinTech now accounts for over a fifth of all Risk and Compliance roles, up from just 12.2% in 2023.
The trend reflects broader forces reshaping financial services. Speculation around the reintroduction of the higher Bank Surcharge, combined with the operational impact of the Leeds 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, by contrast, are still building their regulatory frameworks, particularly as supervisory expectations intensify.
Compliance gives way to specialist risk functions
The hiring mix across Risk and Compliance is also changing. In FinTech, while compliance remains the largest function, its growth has slowed sharply, rising by just 8.9% this year. Instead, demand has surged in Financial Crime, up 52.2%, 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.
Among banks, compliance hiring continues to decline. Reductions of more than 30% in 2024 have been followed by further cuts in 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.
Discover key insights into the latest Legal labour market trends and stay ahead in a competitive landscape. Download your copy below!
All data featured in this report is available in the Vacancy Analytics platform, which is updated in real-time and allows for interactive analysis, giving you the power to drill into trends to identify the key insights you need to power your business.
If you would like to book a consultation with us to analyse trends in your market, you can schedule one here.
