UK Still Tops the Pack in European Financial‑Services FDI
According to EY’s newest Attractiveness Survey for Financial Services, the United Kingdom remains the place Europeans want to invest their hard‑earned money. Even though the continent as a whole saw an 11% drop in total projects—from 329 in 2023 to 293 in 2024—London keeps its crown.
Numbers Behind the Story
- UK: 73 projects in 2024 (‑32% from 108 in 2023)
- Germany: 32 projects in 2024 (‑16% from 38 in 2023)
- France: 30 projects in 2024 (‑23% from 39 in 2023)
Market Share Snapshot
- UK: 25% of all European financial‑services FDI projects in 2024 (down from 33% in 2023)
- Germany: 11% (no change from 2023)
- France: 10% (no change from 2023)
Why the UK Still Matters
Even with a big dip in actual project counts, the UK’s financial services ecosystem remains a magnet. It now books more than twice as many ventures as Germany and holds a solid quarter of the continental pie.
So while Europe’s overall investment fluttered, London’s winked it’s still the hottest spot for foreign capital in the finance sector.
The leading 10 markets for financial services FDI over the last 10 years
UK Still Leading the Finance Pack, Says EY’s Martina Keane
Why investors keep putting their money in London
In a candid pep talk for the global finance community, Martina Keane, the Managing Partner for EY UK and Ireland’s Financial Services division, reminded everyone that the UK remains the most attractive spot to invest in finance across Europe, even though the sector’s overall investment has dipped a bit this year.
Key Takeaways from Keane’s Speech
- Confidence stays high: “The depth and breadth of the UK’s financial services scene continue to win over global investors, especially as they navigate tricky market conditions”
- Competition’s tightening: “We’re still the front runner, but let’s not forget the investment decline over the past 12 months.”
- Strategic collaboration needed: “Both industry and government are taking positive action. We can’t let this momentum stall—future success hinges on not just keeping, but growing the UK’s global allure.”
- What it means for the sector: “To stay ahead, we must lean on our core strengths, push progressive regulation, fuel innovation, and cement key trade ties outside the UK.”
Personal Touch
Keane’s blend of data-backed optimism and a dash of humour makes a compelling case: the UK isn’t just a financial hub—it’s a playground where innovation meets robust regulation. Investors are told that, while the field is competitive, there’s still plenty of room for growth if we play our cards right.
Bottom Line
The UK’s financial services sector remains a top choice for global investors, thanks to its deep-rooted strengths, forward-thinking regulatory approach, and a collaborative spirit between industry players and government. As Keane warned, it’s not enough to stay in the game; we have to keep advancing so that the UK can keep leading the pack in the ever-shifting world of finance.
New financial services projects rose marginally across Europe and the UK, but fell in most major markets
Financial Services Projects in 2024: A Mixed Bag
The Big Picture
In 2024, Europe and the UK saw barely a bump in fresh financial‑services projects—just 233 in 2023 to 234 in 2024. That’s about as exciting as watching paint dry.
Country‑by‑Country Breakdown
What Does This Mean?
Bottom Line
The year’s angle on financial services is a tug‑of‑war: big regions, big dips, yet pockets of growth lighting up. If you’re watching the market, it’s essential to keep an eye on those sprouting markets—they’re where the next buzz might pop off.
Employment fell across Europe following three years of successive growth
Financial Services Job Market Takes a Tumble in 2024
After three years of sunny growth, the financial services sector across Europe hit a bit of a pothole in 2024. If you’re feeling the crunch, you’re not alone – the numbers speak for themselves.
UK Jobs: A Shocking Half‑Drop
- Jobs in UK financial projects fell by 52% – from 5,019 in 2023 to a mere 2,408 this year.
- That’s almost like a silver dollar turned into a paperweight.
EU‑Wide Decline
- Across the continent, publicly disclosed jobs linked to financial services FDI dipped by 33% year‑on‑year.
- In other words, one in three roles has vanished.
So, whether you’re a banker, a tech hire‑maker, or just a job‑seeker with an interest in finance, the market’s cooling off hard. It’s a sobering reminder that even the most robust industries can face headline‑grabbing downturns. Time to brace ourselves and keep an eye on the next chapter.
London remains leading European city for FDI, but gap with Paris closes
2024 Financial Services FDI: A European Showdown
London still reigns as the top city, even though the number of projects dropped from 81 in 2023 to 39 in 2024. It’s like the city is pulling the same weight, but with fewer people in the crowd.
City Ranking Breakdown
- London – 39 projects (down from 81)
- Paris – 23 projects (down from 31)
- Madrid – 14 projects (up from 11)
- Zurich – 14 projects (up from 9)
- Milan – 13 projects (up from 7)
New Projects – The Real Game Changers
When you look at fresh, “new” financial services projects, the landscape shifts a bit:
- London – 34 new projects (down from 69)
- Madrid – 14 new projects (up from 10)
- Milan – 13 new projects (up from 3)
- Zurich – 12 new projects (up from 7)
- Munich – 11 new projects (up from 5)
- Paris – 11 new projects (down from 18)
So, even though London hasn’t seen a huge boom this year, it remains the major player, while Madrid and Milan are making a solid comeback. Keep an eye on these cities – the financial world is never a dull place!
UK remains leading recipient of US investment
US Keeps Pouring Money into Europe’s Finance Scene
Despite a small dip, the United States remains the biggest backer of financial‑services projects across the continent, tipping the balance in its favor with 25 % of all deals in 2024.
How Many Projects Are We Talking About?
- 2023: 91 ventures brought in from the U.S.
2024: 72 projects — a 21 % drop.
Even though the numbers fell, the U.S. still dominates the field.
UK: The Top Target, Even When Numbers Shrink
- 2023: 38 U.S. projects landed in the UK
2024: 28 projects — a 26 % decline. - But here’s the kicker: the UK received 38 % of all U.S. investment in 2024, which is higher than the decade‑average of 34 %.
So while the overall flow of funds is slightly cooler this year, the UK still remains a prime destination for U.S. capital.
Takeaway
It’s still a big money‑flow marathon from the U.S. to Europe, with the UK leading the pack. Even with fewer projects, the vibe remains upbeat, and the decade trend shows the UK is a go-to hub for American financial expertise.
Switzerland, Spain, Italy and Luxembourg buck trend of falling FDI projects numbers
Financial Services FDI: Who’s Winning in Europe?
In 2024, most of the big European cities have seen a dip in foreign investment into their financial services, but a few pockets of the continent are flipping the script. These hot spots have turned their sectors into real-world Silicon Valleys, pulling in more money than ever before.
Spotlight—The Big Four that Refuse to Fold
- Switzerland – Ranked #4 in Europe, it’s sprouting 24 new projects (up from 15 in 2023). That’s a whopping 60% surge.
- Spain – Holding the #5 spot, it added 22 new ventures (up from 17), a 29% growth.
- Italy – Now #6, it’s up by 113%: 17 projects versus 8 the previous year.
- Luxembourg – Sitting at #7, it’s finished 12 projects in 2024, up from 10—roughly 20% more.
Why the Rest of Europe Is Feeling the Chill
Omar Ali, EY’s Global Financial Services Leader, sums it up nicely: “Even though the global churn—geopolitical jitters, macro uncertainty—has nudged investors and firms alike into a more cautious mood, cross-border moves are still the lifeline for financial giants chasing growth and edge.”
Investment’s Not Vanishing, It’s Just Finding New Homes
While most big market FDI fell both overall and in the largest hubs, these standout centres—Switzerland, Spain, Italy, Luxembourg—have leaned into progressive policies and niche expertise to keep the cash flowing. “Europe’s talent pool and deep capital markets remain a magnet,” Ali added. “The great thing about this region is that investors still see solid competitive advantages.”
Europe’s Grand Finale
Outside of the continent—think NYC, Singapore, Hong Kong—the competition is fierce. In fact, as FDI slipped here, it became even more critical for Europe’s major players to showcase why they’re the best fit for investment. “We need to pull at the pull factors—better infrastructure, golden talent, sound policies—while also working together to keep the money circling within the region,” says Ali.
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