By Peter A Walker
New research from TheCityUK has hailed Scotland鈥檚 financial and related professional services industry as a critical driver of jobs and economic growth.
Its latest report shows that the industry employed 151,000 people and accounted for 10.5% of Scotland鈥檚 total gross value added (GVA) in 2023 (the latest available data).
Edinburgh and Glasgow remain major industry centres, with more than 94,000 people employed within the sectors across the two cities. This represents around 60% of all employment in Scotland in financial and professional services.
Banking, life insurance and investment management all have a strong presence in both cities, with the insurance and banking sectors accounting for 67% of industry real GVA in Edinburgh and more than 50% of industry real GVA in Glasgow.
Scotland is also rapidly becoming a leader in fintech, with more than 200 companies based there: a density of such firms around 60% greater than the UK average outside London.
Sandy Begbie, chief executive of Scottish Financial Enterprise, said: 鈥淪cotland has long been a key part of the UK鈥檚 financial and professional services sector and today remains one of the most competitive financial centres in Europe.
鈥漁ur sector growth strategy set out our ambition to grow the sector and our contribution to the economy, and with Scotland鈥檚 rich heritage, exceptional human capital and strong capability in data and AI, we are well placed to do so.鈥
TheCityUK鈥檚 report also made policy framework recommendations, including:
Ensure that the new strategic investment opportunities unit in the Office for Investment is built on partnership with the private sector, including using secondees and other industry experts. Align Scotland鈥檚 growth plans with UK-wide trade and industrial strategies. Ensure collaboration between policymakers and industry to maintain access to a talent pool. Improve infrastructure and planning certainty, including better digital connectivity and transport links.
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