London's financial technology sector has ignited a substantial hiring boom across the capital's financial services industry, according to new data from City recruiter Morgan McKinley. The report reveals that despite persistent inflationary pressures and economic uncertainty, the number of listed vacancies in the financial sector increased by 13 per cent in 2025 compared to the previous year.
Fintech Firms Lead Explosive Growth
Fintech companies were the standout performers, with hiring surging by an impressive 29 per cent throughout the year. This remarkable growth was particularly concentrated in specialised technical roles, with software engineering and product management positions showing exceptional strength.
Leading fintech players demonstrated particularly aggressive expansion strategies. Firms including Radius, Ebury Partners, and digital banking pioneer Monzo all significantly ramped up their recruitment efforts, with vacancies growing by between 50 and 90 per cent over the twelve-month period.
Maturing Ecosystem Shifts Focus
"The broader pattern suggests a maturing ecosystem: fintech firms are evolving from disruption to infrastructure, building out operational capacity across payments, credit, compliance, and SME services," Morgan McKinley's analysis noted.
More established financial technology companies like Sage and Revolut continued to expand their workforces, though at a more moderate pace than their rapidly growing counterparts. This indicates a sector that is developing greater stability while maintaining its innovative edge.
Banking Sector Maintains Dominance With Tech Focus
Despite fintech's dynamic growth, traditional banking remained the largest component of the financial hiring market, accounting for 61 per cent of all vacancies in 2025. However, the nature of banking recruitment has transformed significantly.
New hiring in banking concentrated overwhelmingly on technology-facing roles, with IT management positions growing by 42 per cent and banking operations roles increasing by 30 per cent. This reflects the sector's ongoing digital transformation and increasing reliance on technological infrastructure.
Commercial Banking Contraction Contrasts With Overall Growth
In contrast to the broader positive trends, commercial banking experienced a 10 per cent decline in vacancies during 2025. Morgan McKinley identified this as evidence of "ongoing cost control in client-facing areas" as institutions streamline their operations and focus resources on strategic priorities.
London Consolidates Position as UK Financial Hub
The capital reinforced its status as Britain's dominant financial centre, recording a 17 per cent increase in vacancies throughout the year. This strong performance elevated London's share of national finance vacancies to 53 per cent, demonstrating its continued appeal to financial employers despite broader economic challenges.
Market Enters More Selective Phase
Victoria Wallamsley, managing director at Morgan McKinley, observed that the financial jobs market has entered a more "selective and disciplined phase" following several years of post-pandemic disruption and adjustment.
"While hiring is no longer volume-driven, organisations are investing with greater precision in roles that support productivity, transformation and long-term competitiveness," she explained.
"This shift reflects structural change rather than short-term volatility, with employers positioning now for the next growth cycle."
The comprehensive data illustrates how London's financial sector is navigating economic headwinds through strategic hiring focused on technological capabilities and operational efficiency, with fintech innovation continuing to drive significant employment opportunities across the capital.
