Most UK financial services firms plan to increase hiring in 2026 with recruitment driven largely by the need for AI expertise, according to KPMG’s UK Financial Services Sentiment Survey.
The quarterly poll, which tracks sentiment of 150 sector leaders, found that over half (55%) expect to hire more staff this year and more than eight in ten are confident about hiring the skills their businesses needs in the first quarter of 2026. This follows one of the worst years for hiring in the sector since the 2008/2009 financial crisis - 2025 was the only year apart from the pandemic (2020) that sector vacancies had fallen since 2008.*
The planned growth in headcount is being channelled primarily into technology and AI, while broader people investment and early-career hiring lag in some areas.
- 52% of firms hiring in 2026 expect recruitment to focus on technology
- AI skills are most in demand when it comes to hiring outside of the sector and upskilling (cited as the biggest focus among 44% and 43% of respondents respectively)
- 57% of those who are planning to increase Board level hiring say acquiring AI skills is the biggest focus this year
- AI development is the second biggest factor influencing hiring decisions for 2026 (25% of respondents), behind only the UK economic outlook (31%)
- Managing Director level was ranked the biggest recruitment priority, while only 4% said apprenticeships will be a priority — down from 20% in December 2024
Karim Haji, Global and UK Head of Financial Services at KPMG, said: “Given the wider declining jobs market, the fact that financial services, a sector that already creates 1 in 13 UK jobs, plans to hire more is a massive cause for optimism. It’s also reassuring to see that AI is creating demand for human skills. AI is no longer just a productivity tool, it is actively shaping who firms hire and who they don’t. As firms acquire more AI and technology specialists, the importance of diversity will be critical to responsible technology design and development. We're already seeing a rise in ethical AI leadership roles going to people with expertise in behavioural and social science, law or psychology rather than purely technical or risk based experience, this is helping firms design AI that is not only valuable, but safe, ethical and trustworthy.
“The focus on more senior, technology focused hires also raises questions about whether the sector is building enough depth and diversity of skills for the long term. As the world becomes increasingly volatile, the sector needs to ensure that recruitment doesn’t become overly concentrated in a narrow set of technical skills, when it also needs breadth, adaptability and robust future talent pipelines.”
Safeguarding investment tilts towards technology over people
Meanwhile, KPMG’s research also found that FS leaders are overwhelmingly prioritising technology when it comes to their resilience investment. When asked what they will do differently in 2026 to strengthen resilience to geopolitical disruption, cyber threats and financial crime, leaders overwhelmingly prioritised technology-led defences, with people investment lower down the list of priorities.
- 43% plan to invest more in technology
- 41% in AI
- 36% in cyber resilience
- 35% in data management and security
- 24% plan to invest more in people
This technology‑first approach is mirrored in fraud and financial crime strategies:
- 68% prioritise fraud prevention technology
- 20% are investing in employee fraud awareness and education
- 9% in human fraud expertise
Together, the findings suggest safeguarding strategies are increasingly built around systems, automation and analytics, with people investment focused on oversight rather than acting as the primary line of defence.
Karim Haji added: “Many financial services firms already have large, technical and highly experienced risk teams but technology is becoming the first line of defence for many – whether against cyber risk, fraud or geopolitical disruption. As technology develops, there is a risk that safeguarding becomes overly systems‑led unless investment in people, judgement and governance keeps pace.”
