The pace of digital transformation in financial services has been relentless, introducing new risks that traditional frameworks weren’t built to handle.
Meanwhile, regulatory bodies in Australia are tightening their grip, with mandates like CPS 230 forcing firms to rethink their approach to operational risk management.
In this high-stakes environment, the challenge isn’t just about compliance - it’s about securing the right talent to manage technology-driven risks before they turn into costly failures.
Cyber-threats, AI governance, and third-party risks have evolved from niche concerns to boardroom priorities.
And Darren Kingston, specialised financial services recruiter couldn’t agree more. As a dominant player in this niche market with a high level of technical knowledge relating to regulation, banking and insurance, Darren has seen how the digital revolution has changes how firms operate. Over his 10 years’ experience in financial services recruitment, Darren says hiring needs have changed drastically to keep up with the changing world.
“I have seen a critical shift from traditional finance roles to positions demanding expertise in AI, data analytics, and cybersecurity. Firms have their sights set on candidates who not only understand financial principles but can also navigate the complexities of digital transformation.”
But many financial firms are finding themselves ill-equipped with the right expertise to address them.
As financial services recruitment experts, let us walk you through everything businesses need to know about hiring for digital transformation in financial services, so you can rest knowing the talent in your workforce is equipped for anything that comes their way.
What’s driving the demand for new risk talent?
The transformation of financial services has introduced complexities that go beyond traditional risk management.
Regulatory scrutiny is intensifying, and firms must now contend with evolving frameworks such as CPS 230, which demands a more structured and proactive approach to operational resilience.
Simultaneously, cyber-threats have become increasingly sophisticated, with financial institutions remaining prime targets for data breaches and fraud. The rapid adoption of cloud computing, AI, and digital banking means risk teams must extend their capabilities beyond conventional compliance measures.
Another challenge lies in third-party and vendor risk management. As firms lean more heavily on external providers for essential functions, they expose themselves to new vulnerabilities. Risk management professionals now need to possess expertise in assessing vendor risk exposure and ensuring compliance with resilience frameworks.
Additionally, AI and automation are reshaping how risk functions operate, and firms must identify professionals who can navigate the ethical and operational risks associated with these technologies.
The skills in-demand
Despite the urgency to address tech risk, financial firms are struggling to secure professionals who possess both industry knowledge and the technical acumen required for modern risk management.
The market demand is shifting toward individuals with deep expertise in cyber-security, data governance, and IT risk controls. Specialists who can integrate regulatory compliance with emerging technologies are particularly valuable.
Operational and third-party risk managers are also highly sought after, as firms recognise the need to mitigate risks across interconnected business networks. The challenge is no longer just about compliance; it’s about hiring individuals who can think strategically and anticipate risks before they materialise.
However, the competition for this niche talent is fierce, leaving many organisations struggling to fill critical positions.
Darren says his advice to businesses who are seeking talent with these in-demand skills need to ensure they are offering competitive salaries to attract high performers.
“Paying the correct, competitive salary for the roles you need is essential to attracting the right talent. Even if these professionals are already in roles, people are willing to move for the right price. Check sources like the Robert Half Salary Guide to get accurate salary ranges of roles in cyber-security, data governance, IT risk and more.”
How firms can overcome the hiring challenge
Australian financial institutions need to rethink how they attract and develop tech risk professionals.
One effective approach is expanding the talent pool beyond traditional risk backgrounds, considering professionals from cyber-security, IT, and data science fields. This shift requires a change in mindset, as many of these candidates may not have the financial services experience but bring valuable insights into emerging threats.
Investing in upskilling existing teams is another way to bridge the talent gap. Instead of competing for a small pool of external candidates, firms can develop internal talent through structured training programs focused on AI governance, cloud security, and digital risk management.
Beyond skill development, financial firms must reconsider how they position risk careers within their organisations. Too often, risk functions are perceived as rigid compliance-driven roles rather than strategic business enablers.
The demand for tech risk professionals is not confined to Australia or any single market, and many firms are looking internationally for talent. Robert Half research conducted in November 2024* found 72% of Australian employers have hired a skilled applicant from another country in the past two years and 65% of employers believe Australia’s labour market is now more reliant on skilled migration compared to five years ago. Global hiring trends show that risk specialists with expertise in AI ethics, cyber-security, and cloud security are in high demand, and firms that remain open to international talent sourcing will have a competitive advantage.
And, Darren says, you can engage with specialised financial services recruiters to help you overcome hiring challenges.
“We can source qualified candidates through our extensive database, referrals, network, and by proactively approaching talent who were not actively looking for a new role, for both permanent and contract needs.”
The future of risk hiring
The transformation of risk hiring isn’t slowing down - if anything, it’s accelerating.
In the coming years, firms will need to prioritise professionals with expertise in AI and automation, as risk functions increasingly rely on technology-driven compliance tools. Finance workers are privy to this, as 82% of them say learning and enhancing AI skills related to their role is necessary for future career success*. The traditional, siloed approach to risk management is becoming obsolete, and financial institutions must build cross-functional teams that integrate risk, compliance, IT, and operations into a cohesive strategy.
Hiring for adaptability rather than rigid skill sets will become crucial. The tech risk landscape in Australia is evolving rapidly, and firms that focus solely on past experience may find themselves hiring for skills that are soon outdated.
Instead, organisations must seek professionals who demonstrate strong problem-solving abilities and the agility to navigate an unpredictable regulatory and technological landscape.
Want to know the trends unfolding in financial services? Access our latest Salary Guide.
The financial industry is at a turning point
Digital transformation in financial services is creating both opportunities and vulnerabilities, and regulators are paying closer attention than ever.
Firms that take a proactive approach to hiring - investing in the right mix of talent, technology, and training - will be best positioned to navigate the risks ahead.
Hiring managers must act now to secure top-tier risk professionals before demand outstrips supply. The firms that rethink their hiring strategies today will be the ones leading the way in tomorrow’s evolving risk landscape.
*The study is developed by Robert Half and was conducted online in November 2024 by an independent research company of 500 hiring managers workers in finance, accounting, business support, and IT and technology. Respondents are drawn from a sample of SMEs as well as large private, publicly-listed and public sector organisations across Australia. This survey is part of the international workplace survey, a questionnaire about job trends, talent management, and trends in the workplace.
Frequently Asked Questions (FAQs)
How is technology transforming the financial sector?
Technology is transforming the financial sector by automating processes, enhancing customer experiences through digital platforms, enabling data-driven decision-making with AI, and introducing new financial products and services, like mobile banking and blockchain, while also demanding increased focus on cybersecurity and regulatory compliance.
Why is digital transformation important for financial institutions?
Digital transformation is crucial for financial institutions to remain competitive, meet evolving customer expectations for seamless digital experiences, enhance operational efficiency, and adapt to changing technology.
What are the key drivers of digital transformation in the financial sector?
Evolving customer expectations for seamless, personalised experiences
The rise of fintech competitors
The need for increased operational efficiency and reduced costs
Rapid advancement of technologies like AI, cloud computing, and blockchain
What are some common digital transformation initiatives in the financial sector?
Implementing mobile banking and digital wallets
Leveraging AI for fraud detection
Leveraging AI for personalised customer service
Adopting cloud computing for data storage and processing
Utilising blockchain for secure transactions
Enhancing cybersecurity measures to protect digital assets
How will digital transformation affect the workforce in financial services?
Digital transformation in financial services will lead to a shift in hiring, emphasising scrutiny on regulation and compliance.
While some traditional roles may diminish, demand will surge for those capable of bridging the gap between finance and technology, requiring continuous upskilling and adaptation from both employers and potential hires.
