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 report by recruitment agency Morgan McKinley and market data analyst Vacancysoft, risk and compliance vacancies within traditional banks are projected to experience a 17% drop in 2024 as banks focus on stabilisation in response to shifting market conditions.
In contrast, there is expected to be a 28% increase in vacancies for these roles in fintech companies, with 1,000 new positions anticipated in 2024. This trend underscores the growing demand to professionalise compliance and risk management as fintechs face increasing regulatory scrutiny.
Specifically, compliance positions are forecasted to rise by 56%, representing 28% of all compliance-related vacancies in the sector. Financial crime roles are also anticipated to grow by 16% year-on-year, although their overall share is expected to decrease slightly from 19% in 2023 to 17% in 2024. Notably, risk management roles are set for significant expansion, with a year-on-year increase of 115%, reaching 122 vacancies and accounting for 12% of the sector’s compliance positions. KYC (Know Your Customer) roles are thriving as well, with a projected 98.4% rise in vacancies, making up 10% of fintech compliance opportunities.
On the other hand, traditional banking is facing a decline in compliance and risk-related roles. Compliance positions are expected to decrease by 29% year-on-year, resulting in about 1,151 vacancies. Meanwhile, risk management roles will experience a 9% decline, maintaining a 13% share of vacancies. Financial crime positions will see a smaller reduction of 6%, holding a 10% share, while credit risk roles are projected to decline by 16%, with around 421 vacancies.
Greater London is expected to see the largest increase in risk and compliance vacancies in 2024, with a 72% year-on-year rise to approximately 738 roles. This marks a recovery following a 50% decline in 2023. The share of vacancies in London is projected to grow from 55% in 2023 to 72% in 2024, driven by advancements in fintech and economic stability, which are boosting investment.