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Capital Funding and AI Adoption Drive Fintech Hiring Growth, as Banks Vacancy Numbers Fall
Nearly two-thirds (63 per cent) of UK financial institutions are now investing in artificial intelligence (AI), rising from 32 per cent in 2023, a new market trends report by Morgan McKinley, the global talent services company, and Vacancysoft, a labour market data and analytics provider, has revealed.
With the number of financial institutions putting money into AI almost doubling in the last year, combined with falling interest rates in the UK, optimism surrounding the financial and fintech industries has grown in the last year.
In fact, the fintech sector led the growth in professional vacancies in 2024, with a 44 per cent year-on-year increase across the UK. This surge appears to have been driven by a rise in venture capital funding, widespread adoption of AI and automation and the sector’s ongoing fragmentation, which has fostered the emergence of new companies. Fintech has become a magnet for talent, particularly in commercial roles.
Global money transfer company Wise Payments led the hiring charge, recording a 225 per cent rise in vacancies, reaching 335 total roles. Elsewhere, Ebury Partners posted a 148 per cent rise to 286 roles, highlighting its success in scaling operations and capitalising on international payment opportunities.
However, the banking sector did not enjoy the same levels of growth. Overall in 2024, banking vacancies actually contracted across most divisions and organisations by 11 per cent, as a result of ongoing restructuring and regulatory challenges
Banking sector challenges are evident
Risk and compliance roles, which have traditionally dominated hiring, saw a sharp 20 per cent drop, reflecting reduced regulatory activity. Meanwhile, major incumbents like NatWest and Barclays posted significant declines in job openings, with reductions of 51 per cent and 45 per cent, reflecting ongoing industry-wide restructuring.
However, certain areas, such as banking operations and IT development, displayed resilience, growing by six per cent and two per cent respectively. These gains highlight a pivot toward streamlining operations and embracing technology to enhance efficiency. Despite the contraction, initiatives like proposed regulatory reforms allowing investment banks to access retail capital could stimulate activity and unlock new growth opportunities in the years ahead.
Continuing past trends, London led the way regarding growth in the financial sector. The capital saw a seven per cent increase in finance sector vacancies, while the rest of the UK experienced a four per cent decline, exposing persistent regional imbalances in job growth. In the report, Morgan McKinley and Vacancysoft highlight that this disparity underscores the need for strategic efforts to decentralise opportunities and foster development in regions outside the capital, ensuring a more balanced market across the UK.
Growth in accountancy
The accountancy sector rebounded strongly in 2024, with a 29 per cent rise in vacancies, reaching its highest demand in five years making up 54 per cent of all openings. This resurgence was driven by increased investment in green services and deeper integration of AI, which created new opportunities for professionals, particularly in tax roles.
Tax professionals experienced a surge in demand, with vacancies reaching their highest levels in five years driven by evolving government policies and regulatory changes, which created opportunities for accountants and consultants with tax expertise. PwC reported a 30 per cent year-on-year increase in vacancies, surpassing 1,000 roles, driven by its growth into sustainable practices and enhanced usage of smart technologies. Regional firms such as Francis Clark and Azets recorded the most significant growth, with vacancies rising 76 and 59 per cent, respectively.
Victoria Walmsley, managing director at Morgan McKinley UK, commented: “The UK jobs market in 2024 demonstrated remarkable resilience, despite global uncertainties and economic pressures. Key sectors such as technology, healthcare, and renewable energy provided stability and growth, driving digital transformation and innovation.
“As we look towards 2025, challenges such as skills shortages, regulatory changes, and evolving workforce expectations remain, yet they also present opportunities for growth and innovation. With continued investment in emerging technologies and green energy, alongside strategic government initiatives to attract talent, the UK is positioned for further transformation.
“It is essential that businesses remain adaptable and collaborative, ensuring that we can navigate the evolving job market and continue to foster economic resilience and growth in the years ahead.”
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February 1, 2025 at 12:32PM