The financial services industry now employs 161,000 people in Scotland and contributes 8.9% of gross value added to the Scottish economy, according to a new report from London-based trade group TheCityUK.
In Edinburgh, almost 53,000 people are employed in financial and related services — almost 16% of the city’s employment — and the gross value added to the local economy from financial services is almost 24%.
In Glasgow, more than 40,000 people are employed in the sector, making up almost 10% of employment — — and the gross value added to the local economy from financial services is almost 12%.
The total contribution to the economy made by financial and related professional services is larger in Scotland than in any other area outside London.
“Edinburgh and Glasgow are the major centres for financial and related professional services employing 52,800 and 40,500 people in the industry respectively,” said the report.
“This represents nearly 60% of all employment in Scotland in financial and related professional services.
“Edinburgh is an important international financial centre with a strong presence in banking, life insurance and investment management activities.
“Glasgow has particular strengths in general insurance, asset administration, legal services and accountancy.
“Aberdeen, Perth and Stirling also employ a large number of staff in the industry.
“The strength of Scotland’s financial services industry lies in its diversity and strong track record of innovation.
“Scotland has particular strengths in banking, life assurance and pensions, investment management and asset servicing.
“It also has vibrant general insurance, corporate finance and broking services sectors, and a strong community of professional advisors and suppliers.
“The Bank of Scotland, which opened in 1695, is emblematic of Scotland’s long history in banking.
“In addition, RBS has its global headquarters in Edinburgh and CYBG, which owns Clydesdale Bank, has its European headquarters in Glasgow.
“Many other UK and international banks have sizeable operations in Scotland, including Barclays, BNP Paribas,
“Citi, HSBC, JP Morgan, Morgan Stanley and State Street. Together they offer the full range of banking services.
“The general insurance, life assurance and pensions sectors in Scotland have a strong reputation and enviable history of success.
“With its origins dating back to the early 1700s when the increase in international trade led to a requirement for marine insurance, Scotland continues to be a major centre for the sector.
“Fund management encompasses a broad mix of large institutional companies and smaller boutique firms that provide investment services to institutional and personal clients around the world.
“The quality of investment management expertise available in Scotland has led to a robust growth of boutique firms and new business start-ups. In recent years,
“Scotland has become a major European centre for asset servicing.
“It also has a large community of professionals providing a broad range of services to the financial services industry.
“These include many prominent accountancy, actuarial, and legal firms as well as some of the oldest professional bodies in the world.
“Scotland is rapidly becoming a global leader in FinTech and is well positioned to capitalise on its data driven innovation with the support of FinTech Scotland, which was established in January 2018.”