It is no exaggeration to say that the UK, especially London, is a global financial powerhouse. The UK boasts a strong presence in the finance industry worldwide — to the extent that it is the largest exporter of financial services globally. Major banks, hedge funds, and trading firms operate in and from the UK. Reliance on policies, strategies, or even capital is insufficient to stay competitive and relevant; you need talented people. Getting the best talent in finance, finance management, and trading can be difficult, especially in today’s economic and technological climate. With all this in mind, it is no surprise that there have been some obstacles when hiring financiers and traders. We’ll explore this in this guide, uncovering insights to stay ahead despite these challenges.
1. Talent Shortages in Specialised Areas
Like most countries and regions worldwide, the UK has had significant shortages in finance-related talent over the last few years, especially regarding specialised areas of finance like FinTech, risk management, and regulatory compliance. This gap has been due to the rapid evolution of the finance industry and technological advancement. This has caused companies to seek a workforce proficient in specific niche skills. The big caveat is that the supply of professionals equipped to meet these demands is limited, creating a significant challenge for firms in the UK and worldwide.
Take, for instance, the world of trading. The rapid advancement in financial technology has caused the increased reliance of traders and other finance professionals on charting tools like TradingView to analyse markets. This means that firms who want to get and stay ahead are on the hunt for financially skilled and tech-savvy candidates. They need people who not only have the ability to interpret data but can also automate trading strategies by integrating AI tools to gain insights into financial markets faster. Considering all these requirements and the need for talent in these specialised areas, it becomes evident that the supply of these kinds of candidates isn’t enough. That is why many companies are investing in their staff to meet the demand for speciality.
2. High Competition for Top Talent
Every company on planet Earth (or at least those that want to succeed) goes for the best talent in the industry. It is a tale as old as time. If someone is excellent at what they do, companies fight to hire them. The fight for the best talent has become significantly tougher (even borderline unfair) for traditional banks and other finance firms, with tech companies like fintech startups gunning for the same people. These tech companies bring perks like flexible work schedules, impressive salaries, and benefits like better work-life balance and faster career growth, all of which traditional finance firms often struggle to match.
At the same time, more and more skilled traders and finance professionals are choosing to work for themselves or even freelance rather than join a firm. This is underscored by the unprecedented rise of retail trading — for example, CFDs and spot forex — alongside the growth of platforms like TradingView, MetaTrader, eToro, and ThinkorSwim. These factors have made it easier for individuals to trade independently. Now, with lower barriers to entry, more market access, and the potential for higher personal profits, many professionals see self-trading as a more attractive option than corporate finance roles, shrinking the talent pool even further for banks and trading firms.
3. Regulatory and Compliance Challenges
The financial sector here in the UK operates under strict regulations from bodies like the Financial Conduct Authority (FCA), and the industry also operates under frameworks like MiFID II and Basel III. These rules can be challenging to keep up with. Why? Because they are constantly evolving. This makes it hard for companies to find traders and sometimes even finance professionals who are market experts and compliance gurus. And this costs companies a lot of money. In 2024, Davies published a study that found that 36% of UK financial services firms faced penalties for compliance failures in 2023.
The problem? There aren’t enough professionals with up-to-date compliance expertise. Because of the competition for these talents and budget constraints, firms cannot meet their demand for compliance specialists, which leaves many of them at risk of falling behind, either getting bogged down in compliance issues or losing out on talent that prefers less restrictive environments.
4. Adapting to Remote and Hybrid Work Models
There’s no denying that the pandemic pushed remote and hybrid work into the mainstream, but the culture is dying out fast, especially in the finance space. Many companies worldwide, especially in the UK, are following a trend of returning to the office, requiring their employees to come in. One of the major companies doing this is the country’s biggest lender, Lloyds Banking Group, which requires employees to be in the office at least two days a week, even tying compliance to bonus eligibility.
On the other hand, some companies, especially fintech firms, fully embrace the flexible work culture. This divide in approach makes hiring more complicated, as firms trying to enforce stricter office policies lose talent to more flexible competitors.
Some experts argue that in-office work design is better for productivity, but most employees would instead work remotely while still delivering their best. So, right now, the challenge for financial firms isn’t just about hiring talent but designing hybrid work models that balance flexibility with operational integrity.
5. Economic Uncertainty and Market Volatility
Firms in the UK have felt the pressure from global economic uncertainty following the pandemic, which caused hiring to take a major hit. One of the most recent stats points to a 28% drop in job vacancies in London’s financial services sector, reaching a four-year low. Major financial institutions like Barclays, Citigroup, and Deutsche Bank all announced significant job cuts around the same time to reduce costs. Even PwC’s UK operations saw a record 123 partners exit in 2024.
So, with firms running on tighter budgets, they are turning to cost-efficient hiring strategies, including prioritising internal upskilling, automation, and outsourcing to freelancers. This cautious approach means fewer opportunities for finance and trading professionals in the UK as firms look for ways to maintain profitability while minimising hiring risks in an unpredictable market.
The Future of Hiring in UK Finance
Hiring in the UK’s financial sector is more demanding than ever, with challenges ranging from economic uncertainty and regulatory hurdles to shifting work preferences and increasing competition from tech and fintech firms. Adaptation is key for financial institutions that want to thrive and attract the best talent. This means offering more flexibility, investing in upskilling or finding ways to stand out in a shrinking talent pool.
