Fintech leads surge in London finance hiring
Fintech helped lead roaring growth in London’s finance hiring for the second quarter of the year as demand for risk professionals surged amid a more moribund jobs market for traditional lenders.
New financial services jobs vacancies rose three per cent quarter-on-quarter, according to Morgan McKinley’s London Employment Monitor while Greater London fintech hiring is expected to surge 72 per cent for 2025.
A string of recent cyber attacks on top retailers, such as Marks and Spencer’s near-£700m cyber blow, has sparked a hiring spree for compliance and risk experts.
London’s thriving fintech scene has continued to beef up its workforce after posting record numbers in 2024.
Firms are expected to bulk up their headcount beyond the City with neobanks Starling and Monzo projected to hire 471 and 312 employees.
London rises but still lags
Financial services vacancies in London were up 14 per cent year-on-year to 4800 but this was 11 per cent below the beginning of 2023 levels, indicating the market was still reeling from the year’s sharp decline.
The fresh data from Morgan McKinley found hiring sentiment remained “cautious” as global volatility, trade uncertainty and Chancellor Rachel Reeves’ Autumn tax hikes weighed on employers.
Mark Astbury, director at Morgan McKinley, said: “Many firms remain cautious on headcount due to ongoing cost-cutting and economic uncertainty and the government’s decision to raise employer National Insurance Contributions (NICs) have tempered business confidence and impacted hiring.”
Reeves’ hike to employer’s NICs has dampened outlook across sectors, with the boss of retail giant Next stating the hike means “the axe had fallen particularly hard” on entry-level jobs.
Astbury said the Chancellor Mansion House speech set for July 15 would be “closely watched” by the financial services industry.
“The industry is hoping for clear, actionable measures that translate into real-world hiring and business confidence.”
Structural changes were also anticipated to have an impact on recruitment, with the rise of AI expected to “reduce reliance on traditional entry-level roles”.
Morning Wire previously reported the Big Four accountancy firms – KPMG, Deloitte, PwC and EY – were leveraging AI to strip back early-career hiring. Intakes slumped by as much as 29 per cent since 2023, as graduates fell to 942 from 1,399.