The Complete Guide to Financial Services Recruitment

The financial services industry has undergone a massive shift over the past few years between the impact of the pandemic and the advent of more advanced AI technologies. Digital transformation is accelerating successes while an already heavily regulated industry is leveling up its need for governance and risk management. 

Almost gone are the days of bank tellers (hopefully they figure out a way to distribute lollipops through the ATM) and insurance agents (thankfully, Jake from State Farm is still killing it) in favor of more self-service solutions and AI agents. This evolution changes the game for financial services recruiters, altering how they source and what skills they need to focus on — and the stakes are high. But this transformation can drive a workforce transformation.

Financial services recruitment is not just about filling positions — it's about strategically identifying, attracting, and retaining professionals who can navigate the increasingly complex and technology-driven financial landscape. Let’s dive into the details of what these industry shifts mean for financial services recruiters, what skills will be the hottest investment in the future, and how the responsible use of AI can meet your hiring demands while satisfying the needs of your governance boards.

In This Article

What is Financial Services Recruitment?

Financial services recruitment is the specialized practice of talent acquisition focused on filling roles for a variety of financial institutions, including, but not limited to:

• Investment Banking

• Commercial Banking

• Asset/Wealth Management

• Private Equity & Venture Capital

• Insurance

• FinTech

• Hedge Funds

• Risk Management & Compliance

• Financial Advisory Services

Entry-level hiring in this sector has shifted away from traditional banking recruitment. Instead, there is now a focus on sourcing tellers and recruiting customer service agents for phone support. Employers also expect candidates to have some technical knowledge or basic project management skills to adapt to the ongoing digital transformation.

The need for specialized skills — including the critical understanding of how to recruit financial advisors — is still prevalent, but the increased competition for those skills is causing financial institutions to take a different approach to building, buying, or borrowing talent.

Understanding Financial Services Recruitment

According to recent data from the Bureau of Labor Statistics, employment in financial activities is projected to grow faster than other sectors through 2033, adding approximately 950,000 new jobs to the market each year. The unique challenge for financial services recruitment is filling roles with a combination of technical expertise requirements, regulatory compliance considerations, and the need for strong interpersonal skills. The current market faces several key challenges:

• 73% of financial services firms report difficulty finding candidates with the right mix of technical and soft skills

• 65% of organizations cite regulatory compliance as a major hiring consideration

• 82% of financial institutions are accelerating their digital transformation initiatives, creating new demands for tech-savvy talent

With a more intense focus on a wide variety of skills, there is a need for a more granular understanding of candidates and employees. This detailed analysis is also critical to counterbalance the talent shortage, but can only be accomplished at scale with the right technology. Before we get into that, let’s understand more about the specific requirements for different financial sector roles.

Key Sectors in Financial Services Recruitment

Investment Banking Recruitment

Investment banking recruitment remains highly competitive, with top firms typically hiring only 2-3% of applicants. Key positions include:

• Investment Banking Analysts (Entry-level: $85,000-$95,000 base salary)

• Associates (Post-MBA: $150,000-$180,000 base salary)

• Vice Presidents ($200,000-$300,000 base salary)

Qualifications involve a mix of technical financial skills and soft skills like entrepreneurial thinking and salesmanship. Most firms are looking for people with:

• Bachelor's degree in Finance, Economics, or related field

• MBA from a top-tier institution (for associate level and above)

• Series 79 and 63 licenses

• Advanced financial modeling skills for valuation

• Capital market knowledge

• Mergers and acquisitions or IPO experience

Entry-level work in this field typically starts with an internship before the last year of undergraduate studies or after the first year of MBA school. Investment banking is a highly-desired field for many Finance and Economics majors, as well as MBA candidates, so attraction is not typically an issue for financial services recruiters in this field. The bigger problem is selection: how to efficiently navigate a large pool of resumes to find the best talent.

Related: The Future of Financial Recruitment: How Regions Bank Harnesses AI for Smarter Hiring

Asset Management Recruitment

The asset management sector manages over $100 trillion globally, creating sustained demand for talent. Common positions include:

• Portfolio Managers

• Research Analysts

• Risk Management Specialists

• Client Relationship Managers

Skill sets here are very similar to investment banking but with a heavier focus on analysis and risk mitigation. Key technical skills in demand include financial modeling, risk assessment, and deep sector expertise in specific asset classes (fixed income, equities, alternatives). However, the impact of digital transformation is prevalent here with financial services recruiters in this space searching for candidates with quantitative backgrounds and programming skills as the industry embraces data analytics and algorithmic trading strategies.

Essential certifications in this space will vary depending on the assets under management, but minimally a CFP (Certified Financial Planner) certification is desired. Other certifications include:

• CFA (Chartered Financial Analyst)

• CAIA (Chartered Alternative Investment Analyst)

• FRM (Financial Risk Manager)

Market demand for asset management talent fluctuates with market conditions but remains strong in specialized areas. Environmental, social, and governance (ESG) investing has created significant demand for professionals with sustainability expertise. Similarly, private market specialists are highly sought after as institutions increase their alternative investment allocations.

Retail Banking Recruitment

Retail banking continues to evolve with digital transformation. In a recent survey, 8 out of 10 banks felt that technological innovation will ramp up competition in the medium term. While traditional roles aren’t going away completely, they are diminishing as the focus shifts toward acquiring critical technical skills that support future business needs.

Career progression in this space has historically started at the Personal Banker level with high-performing individuals moving to Branch Manager, then Regional Manager, and onto corporate roles as senior executives. The transition to a more digital landscape will change the dynamics of progressions in the space, allowing for more technical career paths to flourish alongside the financial ones.

As transactional roles decrease, selling services and sharing advice at each branch location becomes the new cornerstone of day-to-day activity. Besides soft skills like customer service and relationship building, there is a need for technical aptitude and a solid understanding of different financial instruments and how to package them appropriately. Skills for corporate roles are increasingly linked to digital strategy and execution, focusing on a need for AI design and implementation to help deliver the level of customer service expected by consumers from their bankers.

The challenge for financial services recruiters in this space is finding those digitally-skilled candidates. 67% of banking employers say that the transformation is moving too fast for them to keep up with, impacting not only their ability to find the right talent, but also their ability to create a culture that the right talent can fit into.

FinTech Recruitment

FinTech recruiting has evolved significantly as the industry bridges traditional finance with cutting-edge technology. Emerging roles include Blockchain Engineers who develop decentralized finance solutions, Financial Data Scientists who build predictive models for risk assessment and trading, and Digital Payment Solutions Architects who design seamless payment infrastructures.

Technical requirements increasingly blend financial and technological expertise. Beyond traditional programming languages like Python and Java, candidates often need experience with specialized tools such as:

• Hadoop for big data processing

• SQL for database management

• Knowledge of RESTful APIs 

Understanding regulatory frameworks like PCI, PSD2, and GDPR has become crucial, as has experience with cloud platforms (AWS, Azure) and cybersecurity protocols. The proliferation of AI is also driving demand for skills like Natural Language Processing and Explainable AI to help responsibly add tools that will pass the sniff test in a highly regulated environment.

Finding talent that fits the culture of FinTech companies means finding candidates who understand the complexities of being innovative while working within the confines of a heavily regulated industry. This requires a strong technical background with the ability to translate technical details for non-technical stakeholders to help satisfy risk concerns and compliance requirements. 

For people who have this mix of skills and understanding, there are a variety of opportunities for career growth, moving beyond traditional architecture or lead development roles into strategy and product management areas. The industry's rapid evolution has also created opportunities for specialists to become subject matter experts in emerging areas like open banking, embedded finance, or regulatory technology (RegTech).

Related: AI in Action: How 5 Major Organizations Are Transforming Recruitment and Talent Management

Insurance Sector Recruitment

The insurance sector faces unique recruitment challenges with a large part of the workforce expected to retire within the next decade as part of the continuing Great Retirement. The increased ability to fully automate sales and claims processing also shifts the dynamic for financial services recruiters in this sector, leading to high demand for professionals with both insurance knowledge and technology expertise, particularly in areas like InsurTech, data analytics, and digital customer experience.

Candidates typically need industry-specific certifications like the CPCU (Chartered Property Casualty Underwriter) or CLU (Chartered Life Underwriter), which demonstrate deep technical knowledge and commitment to the field. State licensing requirements add another layer of complexity, with insurance agents and brokers needing to obtain and maintain appropriate licenses for their specific roles and jurisdictions. Many positions also require Series 6 or Series 7 licenses for selling certain insurance products.

Remote work adoption has expanded the talent pool, allowing insurers to recruit nationwide while managing costs. However, this has intensified competition for qualified candidates, especially in specialized roles like actuarial sciences and risk management. Companies are also emphasizing diversity and inclusion initiatives, recognizing the need to better reflect their customer base and bring fresh perspectives to the industry. 

Many insurers now offer mentorship programs and structured career development paths to attract and retain talent. This is critical for early talent as there’s an increasing demand from young financial professionals for companies to demonstrate investment in their employees’ careers.

The Financial Services Recruitment Process

The overall process is roughly the same for financial services recruitment across different sectors, but focus areas will vary based on need. For instance, investment banking recruiters don’t need to focus as heavily on candidate attraction, but insurance recruiters do. The overall process is roughly as follows:

1. Initial Talent Sourcing

For areas that are struggling to attract talent (retail banking, insurance), a robust career site is a necessity to highlight company culture. Authentic employee feedback in the form of video testimonials helps reinforce the quality of that culture and the availability of career growth opportunities. Early talent recruiting events are another good source of attraction, giving financial services recruiters the ability to engage with a number of candidates in one setting.

For sectors that are overwhelmed with applications (investment banking, asset management), there are AI tools, like Phenom Fit Score, that can be used to help narrow the list to candidates that best fit the job requirements.

A robust alumni network can also help fill critical roles faster. Creating an exclusive digital environment and automatically registering employees if they end up leaving gives financial services recruiters the ability to promote jobs for a referral or possibly for someone to boomerang back into the organization.

2. Screening and Assessment

A mix of assessments are used due to the variety of positions available across the industry. Customer-facing positions will typically have a behavioral or situational assessment as part of the application process, with technical assessments being used in traditional positions that involve financial modeling and newer positions that are driving digital transformation.

In the past, the initial screen was done via phone by a recruiter, but more recently, one-way interviews have been used to give recruiters more flexibility in engaging candidates with questions that require a video or audio response. Case studies and scenario handling are also supported through these newer tools to give recruiters additional options to make the screening process more effective.

3. Interview Process

The interview process varies greatly based on the financial sector as well. Investment banking firms will typically use a “super day” process where candidates will come in and go through multiple rounds of interviews, both individual and panel, to rigorously test the candidate’s qualifications. 

Many financial institutions still prefer traditional, in-person interviews that span multiple rounds. Some distributed enterprises in the retail banking industry will leverage video interviews to accommodate remote candidates, but will still typically have someone from the branch also participate in the interview process.

4. Final Selection

There are a number of positions in this industry that require certifications in order to execute transactions like trading and selling financial products. Employment is contingent on having these certifications, or achieving them in a certain period of time after starting. This requires a lot of flexibility in the offer management and onboarding processes, including varied background check processes and document collection capabilities.

Essential Candidate Requirements

Qualifications and Certifications

Most traditional financial services positions require a bachelor’s degree in finance, economics, accounting, or a related field. With digital transformation in full swing, bachelor’s degrees in engineering, computer science, or data science are also applicable for many technical positions. Most positions that only require an associate’s degree are going away in favor of more skilled positions. Many institutions prefer an MBA or Master’s in Finance (depending on the position), or an equivalent accredited certification program.

As a heavily regulated industry, there are a number of certifications that are required in various roles to meet regulatory requirements. Licenses like Series 6 or 7 are required for various positions that involve the buying and selling of mutual funds, stocks, and other securities.

Additional certifications are usually desired to provide client confidence, including Chartered Financial Analyst (CFA) and Certified Financial Planner (CFP) certifications for finance jobs and Chartered Property Casualty Underwriter (CPCU) for insurance. There are many others that can be pursued based on specific job requirements and career goals.

Technical Skills

For financial advisors, there is a need to be proficient in financial analysis and modeling, with an aptitude for using trading platforms and the ability to navigate a Bloomberg terminal. Depending on the position, there may be a need to have a working knowledge of accounting or finance software like NetSuite. Risk management and compliance monitoring skills are also critical in a space ruled by market and regulatory fluctuations. Programming proficiency in Python, R, and SQL is also desired for development roles to support cloud solutions that have heavy statistical and analytical components.

Soft Skills

Customer or client relationship management is a huge soft skill required across a number of different financial services sectors. Hand-in-hand with this are communication and collaboration skills as well as problem-solving and entrepreneurial thinking. Creativity and innovation are paramount for an industry bent on reinventing itself.

Compensation Packages

Given the wide variety of roles in the financial services industry, there are a wide range of compensation options, including:

• Entry-level: $65,000-$85,000

• Mid-level: $100,000-$150,000

• Senior-level: $150,000-$300,000+

• Executive: $300,000-$1,000,000+

Financial advisors will typically receive a commission that’s a percentage basis of assets being managed, or based on the number of financial instruments sold (depending on the institution). This can also include a performance “kicker” if assets do well over time. Some advisors will charge a flat fee instead of a commission, or there may be a combination of the two.

Career Development

Many financial institutions have made investments in cultivating their talent, creating more transparency for their associates related to opportunities to move up and across the organization. Companies like SEI have created a culture of internal mobility that has helped them not only combat the talent shortage, but also reduce attrition by promoting movement opportunities to their employees in the internal talent marketplace. Other organizations are taking a skills-centric approach to career planning, and supporting employees with upskilling opportunities through online learning and mentorships.

Market Trends and Future Outlook

Current Trends

Besides the advent of more jeans in an industry that has historically been buttoned up, the residual effect of the pandemic has led to a more prevalent hybrid work model at a lot of financial institutions. This has helped tremendously with retention and talent attraction.

If you didn’t just skip to this section and read what came before, you noticed the trend of digital transformation. This is prevalent across all sectors in retail and institutional sides of the business. It’s not just about moving things online, but also creating self-service opportunities at branch locations and introducing AI to augment conversations with potential investors or insurance purchasers.

There has also been a big push for ESG-related roles to cover specialized investing concerns. With the younger generations starting to accumulate more wealth, the interest in responsible investing is growing and pushing financial institutions to come up with more dynamic services that can fit these needs.

Future Predictions

Driven by the focus on digital transformation, and the desire to use technology as a differentiator, financial companies are creating new roles to solve their technical challenges. Emerging roles include Financial Data Scientist, Robo-Advisor Developer, and RegTech Solutions Architect. Due to the nature of regulation in the industry, scrutiny of AI is high, so roles like AI Risk Analyst and AI Governance Specialist are also starting to grow in prevalence.

Growth in electronic and cryptocurrency investments is driving the need for specialization in blockchain and understanding of crypto markets. The expansion of sustainable investing options will also drive specialized skill growth and create more investment options.

The protection around digital assets will need to be as foolproof as if the funds were in a vault, so there is a big push for skills around cybersecurity, digital identity management, and AI-powered fraud detection. You can read more about trends in this industry as well as emerging roles and skills in our State of Skills report here.

7 Recruiting Tips for the Financial Services Sector

With all the changes going on in this industry, it’s hard to know where to focus to make financial services recruitment effective and efficient. Here are a few tips to point you in the right direction.

Invest in Your Employer Branding

Build a strong employer brand that resonates with financial professionals. There are a lot of players in this market, so having an authentic brand that stands out and highlights a culture of growth and innovation will attract the cream of the financial crop. Create video testimonials with your employees so candidates can hear firsthand what it’s like to work at your company.

Use Social Media and Other Channels to Connect With Candidates

Leverage LinkedIn, Twitter, and other platforms where financial professionals engage. Reflect your employer brand in these channels and the success you’ve had in your digital transformation efforts and dedication to growth areas like responsible investing. Port similar content over to as many channels as you can so you can meet candidates wherever they are.

Design a Candidate Experience With Intention

Every touchpoint a financial services recruiter has with a candidate is an opportunity to create an experience, a lasting impression. This starts with the first time they land on your career site, and doesn’t end until they accept an offer, so you need to be thoughtful about all your interactions. This means understanding how to balance automation with a more hands-on approach and finding intelligent technology that allows for personalization without a ton of manual effort. 

Assess Compensation Competition

Regular market analysis ensures competitive offers. With the growth of need for technical roles, this needs to involve a wider view into other industries, including Information Technology, to compete properly. Compensation analysis shouldn’t be limited to salary and bonus. Include additional perks like flexible work arrangements and other important factors to younger workers like corporate social responsibility and how that impacts their compensation (e.g. birthday contributions to charity). 

Emphasize the Importance of Diversity

If you have an authentic core value around diversity, equity, inclusion, and belonging, then make sure you are making candidates aware through your career site content and outreach. Weave it into the training of your recruiters so they understand the diversity goals of the organization. Many companies look to technology to solve their diversity problems, but those problems stem from a lack of a diverse mindset ingrained into the talent acquisition culture.

Invest in AI-powered Recruiting Software

The AI tools available to financial services recruiters can significantly improve the candidate experience and talent acquisition’s ability to move candidates through the process swiftly and pleasantly. Unfortunately, within HR, there is somewhat of a stigma attached to these tools, and the Financial Services industry places even more scrutiny on AI solutions. This doesn’t mean you should shy away from using these tools, but instead invest smartly with vendors that have a culture of ethical and transparent AI that can stand up to scrutiny and deliver results that reduce bias.

Nurture the Next Generation of Talent in Finance

Having a robust internship program is already a central tenet of many high-performing financial firms, and is critical for these organizations to align themselves with early talent. University recruiting events, sponsorships, and rotational summer internships are key to engaging with students that are in the thick of deciding their career.

Frequently Asked Questions

What is financial recruiting?

Financial recruiting is a specialized form of talent acquisition focused on placing professionals in the finance industry. It involves finding and screening candidates for roles in investment banking, private equity, hedge funds, asset management, corporate finance, retail banking, insurance, and other financial services sectors.

Financial recruiters handle positions at all levels, from entry-level analysts to C-suite executives. The work involves sourcing candidates through various channels, including professional networks, job boards, social media, industry events, and referrals. They must assess not only technical competencies but also cultural fit, as many financial institutions have distinct workplace cultures and demanding environments.

What is the best way to recruit financial advisors?

Best practices for recruiting financial advisors start with representing your employer brand boldly and authentically to make it stand out in a crowded market. With a solid employer brand in place, recruiters should focus on using their own professional networks as well as engaging with official bodies like the Financial Planning Association to get exposed to as many potential hires as possible. 

Leverage your existing advisors to make referrals, and look into industry conferences and networking events. Many financial advisors are not actively looking for jobs, so focus on building a relationship that will lead to them thinking of you first when they do want to move.

Competitive compensation is a must, but so is providing a clear understanding of career advancement and opportunities for them to expand their skill set. Testimonials from current advisors at your organization that speak to the ease of onboarding, the comprehensive training, the inclusive culture, and the care for long-term growth are especially important to dispel any concerns about making a jump.

Tackle Financial Services Recruitment with Confidence

You’re reading this because you work for a company you believe in and you want to bring the right people in to make it successful. This is a great start, so make sure you are reflecting your beliefs and the quality of the organization in your efforts to attract talent. Regardless of the sector of the financial services industry you’re in, here are the things to remember to make financial services recruitment successful:

• Highlight your employer brand authentically

• Engage with passive talent and build relationships that can bear fruit long-term

• Invest in technology that helps you understand emerging skills and which roles of today can be cultivated to support those skill needs

• Create a compelling candidate experience that delights your hires and makes them brand ambassadors for future hires

• Stay in touch with your alumni as they leave the organization to leverage them for referrals and as possible boomerang employees

As the financial service industry starts to use more AI tools to deliver value to their customers, they will understand the importance of using similar tools to deliver value to their employees and candidates, so stay the course and keep up to date on the best technology to help you solve your recruiting challenges.

If you want to learn more, let’s chat. Book a meeting today and we can share some success stories from customers in the Financial Services industry and how they’ve solved the challenges outlined above.