Data Governance Isn’t Optional And Financial Services Know It

If you work in financial services, you’ll know that “data governance” has become the backbone of compliance, customer trust and competitive advantage. Yet across the UK, banks and insurers are finding that while the need for governance expertise has grown, the supply of qualified talent simply isn’t keeping pace.

So why exactly is demand for data governance professionals rising so sharply and what can organisations do to secure the skills they need?

Why Data Governance Matters More Than Ever

Financial services firms are under pressure from every angle. Regulators like the FCA expect robust data governance frameworks, while GDPR and other global standards have raised the bar on compliance. For firms that get it wrong, the consequences include eye-watering fines and reputational damage that can last for years.

But governance isn’t only about risk management. Companies with strong governance benefit from cleaner data, faster reporting and better decision-making. It also enables innovation, whether that’s in customer personalisation, product development, or AI adoption. Put simply: if the data isn’t well governed, the strategy will fail.

The Hiring Bottleneck
The challenge is that demand has outstripped supply. Right now, UK firms are competing not just with each other, but also with technology companies, consultancies and even start-ups, all chasing the same pool of experienced governance professionals.

This has led to inflated salaries in London and other financial hubs, as well as longer time-to-hire for senior roles. We’re also seeing a trend towards hybrid skill sets, candidates who can combine regulatory knowledge with technical expertise, which narrows the pool even further.

The Skills in Highest Demand

From our work in data recruitment, three skill areas stand out as most sought after:

Data lineage and metadata management, ensuring firms know exactly where their data comes from and how it is used.

Regulatory knowledge, from GDPR to Basel III, organisations want candidates who understand the rules inside out.

Cross-functional communication, governance professionals must be able to bridge the gap between IT, compliance, risk and senior leadership.

These aren’t just technical skills; they’re strategic capabilities that directly impact a firm’s ability to operate effectively.

What Can Firms Do?

So how can UK financial services firms respond to this talent shortage? Investing in long-term pipelines provides a real boost. That means graduate programmes, upskilling initiatives and apprenticeships that build capability from within.

Second, employers must think carefully about their employer brand. Data professionals want to work somewhere that values governance as a strategic function, not a back-office task. Messaging matters and so does culture.

Finally, partnering with a specialist recruitment agency can make all the difference. Generalist recruiters may not understand the nuances of these roles, but a data-focused agency can help map the market, identify the right candidates and reduce your time-to-hire.

The demand for data governance talent in UK financial services isn’t going away. If anything, it will intensify as regulation tightens and competition for data-driven advantage grows. Firms that act now by investing in talent pipelines, strengthening their employer brand, and working with the right partners will be best placed to secure the skills they need.

At KDR Talent Solutions, we specialise in data recruitment for financial services. If you’re struggling to attract or retain governance talent, get in touch…we’ll help you build a team that lasts.
 
FAQs

Q1. Why is data governance so important in financial services?
Data governance ensures financial institutions meet regulatory requirements, reduce risk, and maintain customer trust. Without strong governance, firms face compliance fines and struggle to make accurate business decisions.

Q2. The most in-demand skills for data governance roles include:

• Data lineage and metadata management to ensure transparency and traceability across the data lifecycle.
• Regulatory and compliance expertise – particularly around GDPR, Basel III, CCPA, and emerging AI/data regulations.
• Data quality and stewardship – the ability to define, monitor, and enforce data standards.
• Communication and stakeholder management – bridging the gap between IT, compliance, and business leadership.
• Tool proficiency – experience with platforms like Collibra, Informatica, or Alation is increasingly desirable.

As data governance matures into a strategic function, employers are also looking for professionals who can align governance with business outcomes and support broader data initiatives like analytics, AI, and digital transformation.

Q3. Why is it hard to recruit data governance professionals in the UK?
There’s a shortage of experienced candidates, especially in London. Competition from tech companies and consultancies, combined with rising salaries and demand for hybrid skill sets, can make hiring challenging.

Q4. How can financial services firms attract more data governance talent?
Firms could invest in graduate pipelines, strengthen their employer brand (and more specifically their data team brand) and work with specialist recruitment agencies who understand the data talent market.