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.
However, there is set to be an increase of 28% in vacancies for such roles 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 increasingly come under the regulatory microscope.
Within the sector, compliance positions are 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.
Greater London is expected to see the largest increase in risk and 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.