Start with the climate, not the job spec. Against a subdued 2025 economic backdrop, businesses took a cautious approach to hiring, but there were clear demand hotspots for specialist tech skills including AI, data, enterprise applications and cyber security Computer Weekly (tech recruitment outlook 2026). Regtech sits right on top of that overlap: it needs the data and cyber skills that are in shortest supply, plus the regulatory knowledge that most sectors don't require at all.
So the picture is mixed in a useful way. Overall hiring is careful, which can ease competition for generalist roles. But the exact skills regtech depends on are the ones employers are chasing hardest. Reading that before you write a job description tells you where you'll have to work hardest and move fastest.
Two shortages matter most for regtech. The first is seniority in financial services itself. In the Financial Services sector, recruitment was generally for Regulatory Qualification Framework (RQF) 6+ roles, rather than RQF 3 to 5 GOV.UK - Temporary Shortage List: Stage 2 report. In plain terms, demand clusters around degree-level and above, the experienced compliance and regulatory people, not entry-level hires.
The second is cyber. There are approximately 143,000 people in the UK cyber security workforce, with growth moderately accelerating from 2% in 2022 to 5% in 2024 Cyber security skills in the UK labour market 2025 - GOV.UK. The pool is growing, but slowly against the demand. And the squeeze is real: 70% of cyber firms reported at least one hard-to-fill vacancy AI Labour Market Survey 2025 (Gardiner & Theobald), GOV.UK / publishing.service.gov.uk. If your regtech role leans on cyber skills, expect a thin and contested pool.
Scope to the market you've just read. If demand clusters at RQF 6+ GOV.UK - Temporary Shortage List: Stage 2 report, decide honestly whether every part of your role needs that level, or whether you can split the work and grow some of it in-house. Separating must-haves from nice-to-haves widens your pool without lowering the bar on what matters.
Then plan for speed and scarcity. With 70% of cyber firms reporting at least one hard-to-fill vacancy AI Labour Market Survey 2025 (Gardiner & Theobald), GOV.UK / publishing.service.gov.uk, the strongest people rarely stay on the market long. Shorten your process, line up interviewers in advance, and give quick decisions. Be specific in the advert about the regulatory frameworks and tools you use, so the right person recognises themselves and the wrong fits self-select out.
Finally, look beyond people actively applying. In a cautious market, many of the best people are employed and passive. Reaching them means going to them rather than waiting for inbound applications.
That's where Reed.ai fits. We search a database of 15 million candidates to find the people with the regulatory and technical skills your role needs, then manage recruitment end to end so you can keep moving while the market stays tight. Our recruitment agent manages recruitment end to end for 8% on a successful hire, with no monthly fee and no upfront cost. Tell us about your regtech role and see your shortlist.
