Data Governance in 2025: The hidden hiring challenge for financial services
Data governance has always been a critical foundation for financial services firms
In 2025, however, the landscape has shifted dramatically.
The rise of AI is fundamentally reshaping how data is created, processed and used across financial institutions (although admittedly maybe less emphasis as yet on the how data is created). With more decisions becoming data-enabled and automated, the need for robust, transparent governance frameworks has never been greater. Meanwhile, new regulations like the EU’s Artificial Intelligence Act and a focus on ISO 42001 are introducing stricter requirements for explainability, data traceability and accountability in AI systems, raising compliance demands across the sector. Alongside these shifts, public scrutiny of how organisations manage personal data has intensified. Clients, investors and regulators alike now expect higher standards of data privacy, security and ethical usage.
It is no longer enough to have a framework ‘on paper’; financial institutions now need dynamic, embedded data governance strategies that support both innovation and compliance.
Yet, as the need for stronger governance grows, an important challenge is emerging: finding the right talent to lead and deliver it.
So in this industry, why is Data Governance under a new spotlight?
Financial services organisations today are navigating a complex environment. There’s AI and machine learning adoption, requiring robust data lineage and model explainability. On top of this there are tighter regulations on data movement and cloud storage and increasing board-level scrutiny, as governance failures are seen as direct business risks. Client expectations around transparency and data ethics are rising. In short data governance has evolved. It is no longer simply about compliance and having standards in place; it is about enabling safe, sustainable data usage.
To answer this, the hiring challenge is becoming increasingly clear. Blended skillsets are rare. Companies need professionals who can define, build and embed a governance framework and the knowledge of the technical side of modern data stacks. More than ever, communication skills are critical because data governance leaders must bridge and engage multiple business areas like legal, risk, business and technology teams and this can be a rare combination when so many isolated data governance programmes have happened in the past. For those that are open to transferable skills from other industries, competition is fierce. Financial services firms are battling tech companies, fintechs and consultancies for the same pool of data-savvy talent. However this route at least widens access to available talent, rather than relying on the network of candidates with a data background within financial services.
We have noticed that contractor demand is rising. When permanent hiring projects are causing delays, organisations are turning to interim leaders and specialist consultants to fill urgent gaps.
How can financial services organisations stay ahead?
1. Hire for potential, not perfection. The "unicorn" candidate may not exist. Focus on adaptable, high-potential hires who have the required soft skills and can grow into complex governance roles.
2. Invest in cross-training. Future governance leaders may already be within your other teams.
3. Offer visible, influential roles. Data governance must be positioned as a strategic careerpath, not just regulatory box-ticking or stand-alone programme of work
4. Streamline your hiring processes. In a competitive market, speed and decisiveness are critical to securing top talent.
At least for now, data governance is a strategic enabler for financial services organisations. Those who act now to secure and grow the right talent will be best placed to lead in an increasingly complex, regulated and data-driven future.
At KDR Talent Solutions, we specialise in helping financial institutions find the next generation of data governance and leadership talent. If you would like to discuss your hiring strategy, we would love to hear from you.
