AI and Investment Trends Reshape the Financial Job Market

• Fintech Boom: The fintech sector experienced a 44% surge in job vacancies, driven by venture capital investment and AI
• Accountancy Resurgence: accountancy rebounded with a 29% increase in vacancies, fueled by a focus on green services and AI
• Banking Challenges: Banking vacancies declined by 11%, reflecting restructuring and regulatory pressures
• Regional Disparities Persist: London experienced a 7% increase in finance sector vacancies, while the rest of the UK faced a 4% decline

The combination of increased investment in AI, political shifts in the UK and falling interest rates has made 2024 a pivotal year for the finance sector according to the 2024 Year in Review UK finance market trends report by leading professional recruiter Morgan McKinley and market data analysts Vacancysoft. AI and machine learning continue to reshape the industry, with a 98% year-on-year increase in AI investments. Nearly two-thirds (63%) of financial institutions now invest in AI, a substantial rise from 32% in 2023.

Fintech drives Vacancy boom with record growth in 2024

The fintech sector led the growth in professional vacancies in 2024, posting a 44% year-on-year increase across the UK. This surge was 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.

Leading the charge, Wise Payments recorded a staggering 225% increase in vacancies, reaching 335 roles. In comparison, Ebury Partners posted a 148% rise to 286 roles, highlighting their success in scaling operations and capitalising on international payments opportunities. Business development and sales roles dominated, accounting for 1,277 vacancies—a 54% year-on-year rise and 10% of all openings.

Growth in accountancy

The accountancy sector rebounded strongly in 2024, with a 29% rise in vacancies, reaching its highest demand in five years making up 54% 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% 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%, respectively.

Banking sector faces significant reduction in vacancies

In 2024, banking vacancies contracted across most divisions and organisations by 11% in 2024, reflecting ongoing restructuring and regulatory challenges. Risk and compliance roles, which have traditionally dominated hiring, saw a sharp 20% drop, reflecting reduced regulatory activity. Major players like NatWest and Barclays posted steep declines in job openings, with reductions of 51% and 45%, reflecting ongoing industry-wide restructuring.  Lloyds Banking Group reported a smaller decline of 19%, with 1,931 roles posted during the year. Economic pressures and shifting priorities heavily shaped hiring trends within the sector..

However, certain areas, such as banking operations and IT development, displayed resilience, growing by 6% and 2. 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.

London leads growth in finance

While London saw a 7% increase in finance sector vacancies, the rest of the UK experienced a 4% decline, exposing persistent regional imbalances in job growth. 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.

Victoria Walmsley, Managing Director, 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."

Regional Breakdown - Professional Vacancies, Financial Sector UK, 2022-24

Annual Totals - Professional Vacancies, Accountancy vs Banking vs Fintech, UK, 2022-24

Top Fintech Companies, Professional Vacancies, UK 2022-24