A Realistic Look at the In-House Legal Market (Financial Services)

The in-house legal market, particularly across financial services, has been difficult to read over the past few years. But speaking regularly with clients, candidates, and others across the wider recruitment market, the same themes seem to be cropping up. And with AI making it easier for us track these trends, we can confidently say that they are being felt across the board, including by recruiters working in private practice. 

Since Covid, things have been pretty volatile. There was the initial slowdown, followed by a period where more senior roles opened up as people reassessed their priorities or stepped away from long-term careers. That was then followed by a surge at the junior end, with private practice firms offering salaries that made it very difficult for in-house teams to compete. 

More recently, things have slowed again, with political instability, the cost of living, and wider global events all contributing to a lack of sustained growth. When businesses are unsure about what is coming next, hiring is often one of the first areas to pause.

Hiring Is Happening, But More Cautiously

There are still vacancies in the financial services markets, but the way businesses approach hiring has changed. Many organisations are operating more carefully, with cost control and efficiency taking priority. Growth plans and investment are being delayed or scaled back, which has a direct impact on recruitment. 

Even where there is a need, commitment to hiring is not always there from the outset. Processes can be long, and it’s not unusual for candidates to reach the final stages only for a business to step back and reconsider whether they want to hire at all. In some cases, roles only move forward if a candidate really stands out against the grain and our client secures their first choice.

This is also reflected in the type of roles available. While there is still a reasonable supply of very junior positions, lots of clients are focused on hiring experienced lawyers who can come in and add value straight away. The previous sweet spot of around three to six years’ qualification is currently one of the more challenging times to move.

What Skills Are in Demand?

In terms of skill sets, it’s been some time since we’ve seen consistent demand for corporate lawyers, which was once a route that almost guaranteed you a move in-house. 

General commercial and commercial contracts lawyers are still in demand, but most need something extra to be able to secure the top roles, such as relevant experience in areas like insurance, retail banking or fintech, or more specialised expertise in data protection, technology (including the constantly talked about AI) or digital assets.

There has been some increase in transactional roles, particularly across derivatives, capital markets, structured finance and securitisation. Demand for regulatory lawyers and litigators has also been present, although less consistent. We’ve seen an exceptional need for employment lawyers where demand has remained stronger, particularly in light of upcoming changes in employment law.

In terms of industries, the busiest space is still the fintech sector as well as other innovative financial services companies, both UK and US headquartered. There has also been significant demand from brokerages where there has been some consolidation and growth, with more traditional banks, investment managers and insurers remaining quieter by comparison.

A Longer-Term View

Whilst the current market is certainly not the easiest, it is still moving, just at a slower pace and with more scrutiny than before. With the current macro-economic and political environments being so volatile we are not expecting anything to pick up any time soon.

At Fry & Brown, our focus has always been on building relationships over time, not just placing candidates into immediate roles. That matters even more in a market like this, where timing, positioning and having the right conversations early can make a real difference when opportunities do arise.

May 2026