Top 3 recruitment challenges for financial and insurance companies

TL;DR  

Recruitment in financial services and insurance is very specific and shaped by different forces. A combination of regulatory complexity, digital transformation, and changing candidate expectations affects recruitment in this industry, as it does in many others. And while demand for specialized skills continues to grow, competition for talent is intensifying, both within the sector and beyond it. 

Based on insights from our 2026 HR Report, built on responses from over 5,000 candidates, as well as conversations with HR leaders in financial services and insurance, this article outlines the three most pressing recruitment challenges organizations in the sector face today. 

Overview 

• Why competition for specialized and compliance-heavy roles remains intense 
  
• Why digital transformation talent is increasingly hard to attract 
  
• Why employer brand perceptions impact recruitment outcomes 
• What this means for recruitment in financial services and insurance 

1. Competition for specialized and compliance-heavy roles

Roles within risk management, compliance, actuarial science, and financial analytics are among the most difficult to fill in the sector. These positions require highly specialized knowledge, relevant certifications, and a deep understanding of regulatory frameworks. 

This significantly narrows the talent pool. Candidates who meet both technical and compliance requirements are limited and often already employed. As a result, recruitment processes for these roles are frequently long and resource intensive. 

Therefore, for recruiters, this process means balancing thorough assessment with the need to move efficiently, as vacancies that remain open for extended periods can increase workload on existing teams and heighten operational risk. 

2. Growing demand for digital transformation talent 

Banks and insurers are not competing just with each other for talent. As digital transformation accelerates, they increasingly find themselves competing with technology companies for data scientists, cloud engineers, cybersecurity specialists, and AI experts. 

These candidates often have multiple options, with many outside the financial sector, and may prioritize aspects such as innovation, flexibility, and modern ways of working. In fact, this is reflected in our 2026 HR Report, where candidates ranked:

• career development potential (24%)
• and company values and culture (24%) as the most important factors when deciding which roles to apply for, ahead of salary, which ranked fourth at 14%.
  

Traditional role descriptions and lengthy recruitment processes can therefore become a disadvantage. 

For HR teams, the challenge lies in clearly communicating how digital roles within financial services contribute to meaningful transformation, while ensuring that recruitment processes match the expectations of highly sought-after technical talent. 

3. Employer brand and perception challenges

Despite ongoing innovation, financial services and insurance are still often perceived as traditional or slow-moving industries, particularly among younger candidates. The sector is also frequently associated with long working hours, constant availability, and limited flexibility. 

Even when roles offer modern work environments and flexibility, outdated employer narratives may overshadow reality. And ultimately, these perceptions can discourage potential candidates before they even engage with a job ad. As part of our 2026 HR Report, we asked over 5,000 candidates about what catches their attention first when they look at a job ad. And the top three answers?

• job title and headline
• company culture and values
• key responsibilities

Notably, company culture and values ranked second, reinforcing how strongly employer branding influences early candidate engagement, often long before they even consider applying.

This places increased importance on employer branding, transparency, and candidate experience. Organizations that fail to clearly communicate how they are evolving risk losing talent to sectors perceived as more progressive. 

What's next?

Recruitment in financial services and insurance is unlikely to become simpler in the near future. Regulatory demands will remain high, digital transformation will continue, and competition for specialized talent will intensify. 

For HR teams, this makes clarity, structure, and credibility in recruitment processes more important than ever, not only to attract talent, but to challenge outdated perceptions and position the sector as a modern, sustainable career choice. 

At Talentech, we work with financial and insurance companies across the Nordics and The Netherlands to:

• Build long-term talent pipelines for specialized and compliance-heavy roles

• Reduce time-to-hire through structured workflows and automation

• Strengthen employer branding with clearer, more transparent candidate journeys

Explore how our recruitment solutions support financial and insurance firms HERE.