Credit Risk hiring in Q2 has been mixed. April and May was very quiet and this could be due to the bank holiday season and many hiring managers not being able to move processes along. However, June was a busy month and we have seen a demand for financial institution credit analyst’s from a variety of backgrounds, as well as an increase in job seekers looking at emerging markets for their next role. Post general election, hiring requirements have remained the same and whilst credit might not be as busy as previous years, demand is always steady for top candidates.
Regulatory exposure and job seekers with a strong product knowledge asset class are also being sought after. We expect the next big thing to be e-trading in the market and candidates with experience will be very sought after.
In Q2 real estate lending, business finance and SME lending were key areas that experienced high levels of demand across Fintech. Given the demand for candidates, roles are ranging from entry level graduate mandates for talented analysts, but we are also still seeking experienced individuals who can comfortably step into the more senior mandates like deputy or head of credit positions.
Peer to peers and challenger banks who had their FCA licences approved are continuing to gain momentum in the market and are increasing market share, hence the need to source talented credit analysts and underwriters who can share their insights on risk, credit policies and frameworks. As Fintechs continue to innovate and develop new products, experience within payments, pricing and products such as cards are also in demand.
In terms of specific skills, given the growth of these sectors, candidates who have strong excel, SAS and VBA skills bring an added value as they can get involved in the modelling aspects of the credit function and given that most clients have European customers/exposure, having additional language skills such as French, Italian or German as most welcomed.
We have noted a number of roles within counterparty exposure management looking at pre-trade approval. Knowledge of risk measures such as PFE, EPE, VAR and Wrong Way Risk is key as is strong asset class knowledge, therefore, a quantitative market risk background is relevant.
This also includes, portfolio market risk with cross asset exposure and traded market risk modelling spanning across regulatory capital models such as VaR / Stress VaR and risk management models such as stress testing.
Hiring in model validation/model risk remains buoyant with increasing regulation and with new initiatives from the EBA further increasing workload. It meant that most banks needed to increase their functions - exposure to pricing models was particularly in demand, ideally with strong programming skills in Python. Another busy area is related to IMM and IRB regulation and new stress tests related to IFRS9 which has seen a notable increase in roles within counterparty risk and CVA modelling. In addition, we have continued to see banks look to grow their functions around model risk governance.
After a busy two years of hiring within quantitative projects, most banks have put a number of roles on hold while they reassess their global structure.
The demand for investment risk specialists within specific asset classes has become the norm and job seekers with a clear product focus, dynamism and excellent programming or coding skills are in high demand. The period of cross asset knowledge has passed and SME’s are valuable in the current market.
Other opportunities on the increase within investment risk functions are more aligned to risk analytics and enhanced collection, analysis and presentation of data. These sort of opportunities require adaptability in terms of programming languages and coding in particular the need for individuals with strong skills in VBA, SQL, Matlab or Python.
Q2 has shown to be a busy period for operational risk hiring, particularly at VP Level. The main focus areas for clients during Q2 were capital markets and project management skills around the development/design of operational risk frameworks and their implementation across organisations. Risk and control assessments, scenario analysis, capital and risk appetite appeared to be the most common elements of role requirements.