Figures from Morgan Mckinley and Vacancysoft have shown the UK’s banking sector has entered a period of renewed hiring, marking a turnaround after two subdued years. Confidence is returning across the industry, with vacancy volumes forecast to rise 11 per cent Year on Year nationally. London remains at the forefront, set to post a 15 per cent increase, reinforcing its role as the country’s dominant financial centre.
Hiring peaked in July before easing in August, in line with seasonal trends. However, the sharper volatility this year may also reflect shifting recruitment cycles as automation reshapes workforce needs. Across the country, regional demand has remained more stable, offering evidence of a broader, if uneven, recovery.
Technology and operations are now central to recruitment strategies. IT Management has become the fastest-growing discipline, with vacancies rising 43 per cent. Demand for development and engineering talent is also up, increasing 26 per cent YoY as institutions focus on AI infrastructure and digital integration.
Operations hiring is accelerating, with a 34 per cent rise in roles managing AI-enabled processes. In contrast, growth in Risk & Compliance remains flat at 1 per cent as automation takes over more regulatory tasks.
Commercial Banking continues to decline, contracting 10 per cent amid ongoing branch closures and shifting consumer behaviour. Accounting specialisms are diverging: Financial Accounting and Audit are gaining ground, while Tax roles and financial advisory positions are becoming less prevalent.
London is extending its lead in banking recruitment, with its national share nearing 50 per cent for the first time since the pandemic. The capital’s role in major transformation projects and AI investment continues to draw in headcount.
Scotland is seeing a mixed picture. Overall hiring is projected to rise 20 per cent, led by Glasgow, where volumes have surged 50 per cent. Meanwhile, Edinburgh saw a decline of 7 per cent, underscoring varied regional performance.
Northern Ireland stands out, with vacancy growth of 40 per cent, mostly concentrated in Belfast. By contrast, the North East recorded the sharpest decline at 29 per cent, while other regions posted modest single-digit improvements.
“After a subdued two years, the UK banking sector is now firmly back in growth mode,” said Mark Astbury, Director, Morgan McKinley. “What we are seeing in 2025 goes beyond recovery – banks are investing in AI-first infrastructures, which is driving demand for IT management, engineering and operations talent. London remains the powerhouse of hiring, but the rapid growth of hubs like Belfast and Glasgow shows how technology and operations talent is reshaping the industry across the UK. This rebound is not simply about recovery – it is about reinvention, resilience and long-term competitiveness.”
The full report, produced by Morgan McKinley and Vacancysoft, is available to download here.
