Long term competitiveness

Key facts about UK-based financial and related professional services 2024

12 March 2024
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Against the current challenging economic backdrop, the UK-based financial and related professional services industry continues to play an enabling role in supporting economic growth, and to support individuals and businesses in their day-to-day activities through familiar services like saving, mortgage provision, and business lending. The data presented in this report highlights the multifaceted contributions made by the financial and related professional services industry.

Our research delves into the contributions of the various industry components and sub-components, examining their role in job creation, retail financial services, corporate fundraising, and more. For example, the latest available data show that the financial and related professional services industry employed more than 2.4m people across the UK in 2022. In that same year, UK-based fund managers managed more than £10trn in financial assets, and UK private equity funds invested almost £30bn in UK companies.

As we embark on a long path of economic recovery, the insights in this report provide crucial evidence for policymakers and industry stakeholders of the value and contribution of the financial and related professional services industry. Understanding the industry’s manifold contributions is a critical first step towards formulating informed strategies that will maintain and enhance the industry’s competitiveness, allowing it to continue to drive UK prosperity.

Over 2.4 million people in the UK worked in financial and related professional services in 2022

This accounted for 7.5% of total UK employment, with two thirds of this employment based outside of London

Financial services had more than 1.1m people in employment:

banking – 371,000

insurance – 320,000

fund management – 68,000

other financial services – 307,000

Related professional services had almost 1.4 million people in employment:

management consultancy - 536,000

accountancy - 476,000

legal services - 368,000

Financial services sector productivity is almost 2.5 times as high as whole-economy productivity

Financial and related professional services contributed £243.7bn (12% of the total) to UK real GVA* in 2023 *Gross value added

The outstanding amount of loans made
available by major banks to UK businesses was £527.6bn as of November 2023

35.1% of this was lent to SMEs

UK-based financial and related professional services generated a trade surplus of £95.6bn in 2022

UK fund managers helped to protect and grow around £10.3trn in financial assets in 2022

In 2022, UK private equity funds invested £27.5bn in more than 1,600 UK companies

The UK is home to 43% of all
LawTech start-ups in Europe

UK and international companies raised £9.2bn in issues of shares on the London Stock Exchange in 2023

The UK’s pension industry had made
investments worth £3.7trn at the end of 2022

Enhancing customer experience through digital financial services

Annual transactions made with contactless payment cards were up 30% in 2022 to £17bn

• In 2022, the number of payments via the Faster Payments Services (FPS) reached 4.3bn

42% of all business-to-business payments were done using FPS or another remote banking system

North East
North West
Yorkshire and the Humber
East Midlands
West Midlands
East of England
London
South East
South West
Northern Ireland
Scotland
Wales

Select region for information

UK

Employment in UK-based financial and related professional services, 2022

2,446,000 total employment

Source: TheCityUK calculations based on data from Nomis and the Northern Ireland Business Register and
Employment Survey

North East

53,000 people in employment in UK-based financial and related professional services

In Newcastle there are 15,765 people employed

North West

273,000 people in employment in UK-based financial and related professional services

In Manchester there are 51,355 people employed
In Liverpool there at 21,025 people employed

Yorkshire and the Humber

145,000 people in employment in UK-based financial and related professional services

In Leeds there are 38,435 people employed
In Sheffield there at 20,590 people employed

East Midlands

94,000 people in employment in UK-based financial and related professional services

In Nottingham there are 13,385 people employed
In Northampton there at 9,065 people employed

West Midlands

178,000 people in employment in UK-based financial and related professional services

In Birmingham there are 66,125 people employed
In Coventry there at 8,085 people employed

East of England

161,000 people in employment in UK-based financial and related professional services

In Norwich there are 12,170 people employed

London

837,000 people in employment in UK-based financial and related professional services

South East

267,000 people in employment in UK-based financial and related professional services

In Reading there are14,430 people employed
In Brighton there at 11,560 people employed

South West

174,000 people in employment in UK-based financial and related professional services

In Bristol there are 45,900 people employed
In Bournemouth there at 12,965 people employed

Northern Ireland

42,000 people in employment in UK-based financial and related professional services

In Belfast there are 20,633 people employed

Note: Northern Ireland and Belfast figures are employees

Scotland

149,000 people in employment in UK-based financial and related professional services

In Edinburgh there are 57,290 people employed
In Glasgow there at 34,800 people employed

Wales

73,000 people in employment in UK-based financial and related professional services

In Cardiff there are 27,075 people employed
In Swansea there at 7,090 people employed