UK’s status as a financial services leader in doubt, according to industry workers
The UK’s position as a global financial centre is waning according to those working in the sector, new research finds.
The findings from CRIF, Europe’s leading provider of insurance and credit information, show four in ten (39%) senior financial professionals working in the UK say the country’s dominance in financial services has weakened in recent years.
As a result, nearly half (44%) say they no longer consider the country a global leader in financial services, with the top reasons behind this including Brexit’s impact on firms’ ability to do business globally (42%); stagnant growth of the sector in recent years (35%), staff reductions (35%), and a lack of investment in critical areas including fintech (31%).
Global rivals catching up with London
When asked which cities they considered to be the world’s top financial centres, UK-based financial services professionals still placed London second, only marginally behind New York (63% vs. 59%).
However, Middle Eastern and Asian cities made up the rest of the top-ranking cities, with European cities such as Zurich, Frankfurt and Paris now behind counterparts, ranking eighth, ninth, and tenth respectively.
Rank | City | % |
1. | New York | 63% |
2. | London | 59% |
3. | Dubai | 25% |
4. | Tokyo | 23% |
5. | Hong Kong | 20% |
6. | Singapore | 17% |
7. | Shanghai | 17% |
8. | Zurich | 11% |
9. | Frankfurt | 9% |
10. | Paris | 8% |
Uncertainty over the future
The views of senior financial professionals are also split on whether the UK can reverse this perceived decline. One in five (21%) of those who believe the UK is falling behind also believe this decline can be reversed, and London can continue to be a leader in financial services. However, a similar proportion (20%) remains sceptical, believing the UK will struggle to regain its standing as a global financial hub.
In terms of the biggest challenges now facing financial services companies, professionals highlighted growing cybersecurity and fraud risks (91%), greater competition in the sector (82%) and increased regulation (81%) as the biggest challenges their businesses must contend with.
Sara Costantini, regional director for the UK & Ireland at CRIF said: “An undisputed epicentre of global finance, London’s status as a world-leading financial hub is now coming under pressure – and it’s those working within the industry who are sounding the alarm.
“To remain a global hub for finance, UK leaders across government and the industry must work together to address these challenges and invest more boldly in financial technology and the infrastructure underpinning it, while ensuring a balanced, proportionate approach to regulation. Alongside this, adopting the latest innovations to fight fraud and protect systems from malicious actors is now critical.
“Without decisive action, new markets will continue to catch-up with and challenge London’s long-held crown as a leader in financial services.”
The findings form part of CRIF’s latest Banking on Banks report, which identifies the biggest changes to the financial services sector across Europe over the last decade, drawing on the views of both consumers and senior financial services professionals working in the UK, and serving European markets. CRIF’s second report, to be published later in 2025, will look at the trends and issues that are expected to shape European financial services in the decade ahead.