01
A bifurcated market
While most banks, asset managers, insurers and fintech firms are actively recruiting again, the market is far more selective than the post-pandemic hiring boom. The reality on the ground is that candidates feel the market is difficult, while employers feel talent remains scarce. Surprisingly, both are correct.
The Asian financial services talent market has become increasingly bifurcated. Exceptional talent is receiving multiple approaches and counteroffers, while average candidates face longer processes, more interviews and greater scrutiny than at any point since 2020.
02
Hiring is up — but mostly replacement hiring
One of the biggest misconceptions in the market is that hiring activity equals headcount growth. Across Singapore and Hong Kong, much of the hiring being observed is replacement hiring rather than net-new headcount creation. Financial institutions remain cautious due to geopolitical uncertainty, regulatory pressures and ongoing cost-management initiatives. Many approved roles are linked to attrition, internal restructuring or capability upgrades rather than business expansion.
Clients continue to invest in strategic functions, but they are demanding immediate productivity. The era of hiring potential alone has largely passed; employers increasingly want candidates who can deliver impact from day one.
For candidates, this means opportunities exist, but moving jobs has become materially harder than in 2021–2023.
03
Risk and compliance are no longer "support functions"
The strongest structural trend across Asia is the continued elevation of risk, compliance and governance functions. Financial crime compliance, AML, sanctions, regulatory reporting, operational risk, third-party risk management, digital risk and cybersecurity governance all remain priority hiring areas. Regulatory scrutiny continues to intensify, and firms recognise that failures in these functions can have immediate reputational and financial consequences.
In Singapore specifically, compliance hiring has remained relatively resilient even as traditional enterprise risk management hiring has moderated. Industry reports continue to highlight sustained demand for governance, legal and compliance professionals despite broader headcount constraints.
What is particularly notable in 2026 is the return of "traditional" risks. According to the EY and Institute of International Finance global survey of banking CROs, credit risk, fraud and financial crime have moved sharply back up the agenda alongside cyber and technology risks. Cybersecurity remains the dominant concern for bank CROs globally — cited by 86% of the 101 banks surveyed — while digital fraud jumped to 59% (from 23%) and financial crime to 43% (from 23%) as board-level issues.
For compliance professionals, this means demand remains strongest in:
- Financial crime compliance
- AML and sanctions
- Regulatory reporting
- Operational resilience
- Technology and cyber risk
- Third-party and vendor risk
- Digital assets regulation
- Conduct and governance oversight
04
The rise of the "hybrid" risk professional
Perhaps the most important shift in hiring expectations is that technical expertise alone is no longer enough.
Clients increasingly want risk and compliance professionals who understand technology, analytics and transformation programmes. Risk managers are expected to interpret data, challenge AI models, oversee vendor ecosystems and engage with technology stakeholders. Compliance leaders are expected to drive change initiatives rather than simply interpret regulations.
AI literacy, analytics capability, digital risk knowledge and technology awareness are rapidly becoming baseline expectations rather than differentiators. Similarly, the EY/IIF survey of bank CROs highlights growing demand for stronger analytical capability, data expertise and organisational agility within risk functions, with 71% of CROs naming digital acumen as the most important skill set for their teams.
The result is a growing premium for professionals who can operate across regulatory, operational and technology domains simultaneously.— Weiyun Teo, Director, Risk & Compliance, Arctiva Partners
05
Candidates have more choices than employers think
Another disconnect in the market concerns candidate sentiment. Many employers believe candidates are becoming more risk-averse. While partially true, top talent continues to move when the right opportunity emerges. However, compensation is no longer the sole driver. Increasingly, candidates evaluate employers based on:
- 1
Leadership quality
- 2
Career progression
- 3
Exposure to regional work
- 4
Organisational stability
- 5
Flexible working arrangements
- 6
Technology investment
- 7
Learning opportunities
Reports across Singapore show professionals continuing to place significant importance on flexibility, development and workplace culture alongside pay. Job movers still expect meaningful salary increases, often in excess of 10%, especially for specialist skill sets — one 2026 salary survey found 83% of professionals changing jobs expect an increment above that level (The Business Times).
The challenge for employers is that many continue to sell jobs the way they did five years ago, while candidates increasingly assess careers through a broader lens.
06
Singapore remains the talent hub — but not the only one
Singapore remains Asia's premier hub for governance, regulatory oversight and regional leadership functions. The city-state's financial sector created an average of approximately 4,200 net jobs annually between 2021 and 2025 (The Straits Times) while continuing to grow across banking, asset management, insurance and sustainable finance.
A growing number of firms are willing to place functions in Malaysia, Thailand, India and other lower-cost jurisdictions when talent availability and economics justify the decision. The historical assumption that every regional role must sit in Singapore or Hong Kong is gradually disappearing.
For candidates, this creates broader regional opportunities. For employers, it expands talent pools during a period when specialist risk and compliance expertise remains in short supply.
07
What clients are really worried about
In boardrooms across Asia, three concerns consistently dominate talent discussions:
- 1
Can we find the right skills?
- 2
Can we retain them once hired?
- 3
Do we have future-ready leaders?
Talent shortages remain most acute at senior manager, director and executive levels, particularly where regulatory credibility, stakeholder management and regional exposure are required. Several market studies continue to identify shortages of experienced governance and risk leaders across Asia's financial centres.
Many organisations are now less concerned about volume hiring and more concerned about succession planning. The key question is no longer simply who can do the job today, but who can lead through the next regulatory cycle.
08
The outlook
The 2026 Asia financial services talent market is neither a candidate market nor an employer market. It is a specialist market.
Candidates with expertise in financial crime, regulatory reporting, operational resilience, technology risk, cyber governance, digital assets, AI governance and strategic transformation remain highly sought after. Average talent faces increasing competition. Exceptional talent remains scarce.
For employers, the winning strategy is becoming clear: move faster, assess better and sell opportunities more effectively. For candidates, the lesson is equally obvious: domain expertise remains valuable, but future career acceleration increasingly depends on combining regulatory knowledge with technology, analytics and business transformation capability.
In short, 2026 is not a hiring boom. It is a battle for specialist talent — and nowhere is that more visible than in risk, compliance and governance.— Weiyun Teo, Director, Risk & Compliance, Arctiva Partners
Talk to Arctiva Partners about specialist risk and compliance hiring
Arctiva Partners places risk, compliance, middle office, legal and governance talent across Singapore and Asia. Whether you are hiring for a specialist mandate or weighing your next move, we are glad to give you a confidential read on the market.