Why It’s Harder to Hire Credit Risk Quants Than Front Office Quants in London
By Campion Pickworth – Specialist Credit Risk and Executive Search Partner in London
In London’s competitive quantitative talent market, a paradox has emerged. While banks continue to compete aggressively for front office quantitative talent, many are finding it significantly harder to hire credit risk quants.
At Campion Pickworth, where we specialise in risk recruitment and executive search in London, we consistently see greater scarcity, longer hiring cycles, and higher candidate drop-off rates in credit risk quant roles compared to front office quant positions.
This article explores why credit risk quant hiring has become one of the most challenging talent markets in financial services—and why the gap between front office and risk quant talent is likely to widen.
Credit Risk Quants vs Front Office Quants: A Structural Talent Imbalance
At first glance, front office and credit risk quant roles draw from similar talent pools: highly analytical professionals with strong mathematical, statistical, and programming skills.
Yet in practice, the dynamics of supply and demand are very different.
Visa Sponsorship Favouring Front Office Roles
One of the most practical reasons is immigration policy and hiring behaviour.
In London, banks are often more willing to sponsor visas for front office quant roles than for credit risk positions. Front office roles are perceived as directly revenue-generating, making the business case for visa sponsorship easier to justify.
As a result:
- International candidates are more likely to secure front office roles.
- Credit risk teams have a smaller global talent pool.
- Competition for domestic credit risk talent intensifies.
This structural imbalance makes credit risk quant recruitment in London disproportionately difficult.
Candidate Preference: Everyone Wants Front Office
There is also a clear behavioural trend in the candidate market.
Most quantitative professionals—particularly at junior and mid-level—aspire to front office roles due to:
- Higher compensation potential
- Stronger career visibility
- Perceived prestige
- Closer proximity to trading and markets
Even candidates with strong risk backgrounds often view credit risk roles as stepping stones rather than long-term career paths.
For banks, this creates a persistent retention and attraction challenge within credit risk modelling teams.
The Expansion of IFRS 9 and Regulatory Complexity
The growth of IFRS 9 has fundamentally changed the scale and complexity of credit risk modelling.
Banks are facing:
- More sophisticated Expected Credit Loss (ECL) models
- Increased model documentation requirements
- Greater regulatory scrutiny of assumptions and overlays
- Ongoing model recalibration and enhancement
This has significantly increased demand for:
- Credit risk quants
- IFRS 9 specialists
- Model development professionals
- Risk analytics experts
Yet supply has not grown at the same pace.
External reference:
IFRS Foundation – IFRS 9 overview
https://www.ifrs.org/issued-standards/list-of-standards/ifrs-9-financial-instruments/
SS1/23 and Rising Pressure on Model Governance and Validation
Regulatory expectations around model governance have intensified following the UK Prudential Regulation Authority’s SS1/23.
Banks are now required to demonstrate:
- Stronger model risk management frameworks
- Independent validation capability
- Enhanced documentation and auditability
- Clear model lifecycle governance
This has triggered a surge in demand for:
- Model validation quants
- Model risk professionals
- Governance and oversight specialists
However, these skillsets are highly specialised and rarely found in abundance.
More details on the SS1/23 from PRA
Bank of England – SS1/23 Model Risk Management
https://www.bankofengland.co.uk/prudential-regulation/publication/2023/ss1-23-model-risk-management-principles-for-banks
IRB Repair Programmes: A Multi-Year Demand Cycle
IRB (Internal Ratings-Based) repair programmes continue to drive structural demand for credit risk quantitative expertise.
Across London, banks are still engaged in:
- IRB model remediation
- Methodology redesign
- Regulatory feedback implementation
- RWA optimisation initiatives
These programmes are multi-year in nature, meaning demand for credit risk quants is persistent rather than cyclical.
Unlike front office hiring, which fluctuates with market conditions, IRB-driven hiring is structural and ongoing.
This further exacerbates the talent shortage.
Junior Talent Flowing to Tech, Not Banking
Another critical factor is the changing aspirations of junior quantitative talent.
Increasingly, high-potential graduates and early-career quants are choosing:
- Big tech firms
- Fintechs
- AI and data science roles
- Start-ups
over traditional banking careers.
For many, tech firms offer:
- Faster innovation cycles
- More flexible cultures
- Stronger perceived career optionality
- Competitive compensation
As a result, the pipeline of junior credit risk quants entering banks is shrinking, even as demand continues to rise.
This creates a fundamental misalignment between supply and demand.
The Next Challenge: Validating AI Models in a Regulated Industry
Looking ahead, the next major challenge for credit risk teams will be the validation and governance of AI-driven models.
Banks are increasingly exploring:
- Machine learning credit models
- Alternative data sources
- AI-driven decision engines
However, deploying AI in a highly regulated environment raises complex questions around:
- Explainability
- Model risk
- Regulatory approval
- Governance frameworks
This will create a new category of demand for professionals who combine:
- Quantitative expertise
- AI and machine learning knowledge
- Regulatory and model governance experience
In other words, the scarcity of credit risk quants is likely to intensify, not diminish.
What This Means for Banks and Hiring Strategy
For banks, the implications are clear:
- Credit risk quant hiring requires longer-term planning than front office hiring.
- Compensation, career pathways, and employer branding must be rethought.
- Reliance on specialist recruitment and executive search partners is increasing.
At Campion Pickworth, we are seeing growing demand for specialist credit risk recruitment and executive search in London, particularly across:
- Credit risk modelling
- Model validation and governance
- IFRS 9 and IRB programmes
- Senior risk leadership roles
Partner with a Specialist Risk Executive Search Firm in London
Campion Pickworth works with banks and financial institutions to secure scarce quantitative and risk talent across London.
We support hiring across:
- Credit risk and model development
- Model validation and governance
- Risk transformation and regulatory change
- Senior risk and CRO leadership
Risk Recruitment London
Risk Management Services
If you would like to discuss the evolving credit risk quant market or your hiring strategy, we would welcome a confidential conversation.