Research Report

State of the Sector 2023

Posted: 10 Jul 2023

Resource Type: Research Report


The financial and professional services (FPS) industry is the engine room driving UK growth.

With 2.5 million people employed across the UK – over 1.1 million in financial services (FS) and more than 1.3 million in related professional services – the industry produced £278bn of economic output, 12% of the entire UK’s economic output, and £100bn in tax revenue.

The UK is a world leader in many areas of the financial industry – banking, insurance, asset management – but global competition means the UK must continue to strive.

Download the 2023 update

State of the sector: annual review of UK financial services 2023

State of the sector: annual review of UK financial services 2023

An open and global financial hub

The UK is the most globally connected banking hub, with strong market access and coherence with international standards. To remain attractive to domestic and international firms, there is work underway to ensure access to funding and supporting continued innovation across our financial services sector.

The UK has broad and deep expertise across products and markets, and strongregulatory and legal coherence with other jurisdictions. We will use this position to keep pushing for high global standards and seek deep trading relationships with global markets. The UK has world-leading solutions and capabilities; these deserve a global stage.



An integrated ecosystem driving growth across the UK

The UK is the largest financial centre outside of the United States. Its unique ecosystem offers depth and breadth across capital markets, insurance and investment management. This financial market activity is complemented by the broader ecosystem of legal services, accounting, consulting, operations, and tech innovation.

The UK government has introduced groundbreaking changes to policy and regulation that will support the ecosystem and encourage growth for years to come. For these changes to be successful, they must be given time to take effect. Cultural changes that promote greater risk appetite and business success would also drive future growth.


An opportunity to become more efficient, competitive, and proportionate.

The UK’s framework for financial services regulation is internationally respected and plays a major role in its attractiveness to global businesses. For example, the Financial Services and Markets Act addresses many of the challenges faced by UK financial services firms and will help to make the UK a more competitive and future facing market.

The UK is a hub for global finance and professional services; its regulatory framework needs to keep evolving to reflect this and meet both domestic and international needs.


A sector at the forefront of innovation

The UK is Europe’s leading fintech ecosystem: a global financial hub with a highly skilled workforce where innovative companies can grow. To date, the UK government has supported fast-growing companies through investment schemes, access to homegrown and international talent, and accelerated routes to market.

There is further opportunity for the UK to grow into a global leader of the digital economy by digitalising financial market infrastructure and operations. To be successful, the business environment needs to balance support for new technologies with protection of the UK’s globally-recognised regulatory and legal frameworks.


A sector greening the world’s financial system

The UK remains the only financial centre that leads in both conventional and green financial centre rankings. It brings together transition financing experts, an appetite for long-term sustainable investment, and a leading insurance market for global environmental projects.

The UK government and regulators are also frontrunners in adopting best practice and incorporating environmental impact metrics holistically into the financial system. The future of finance is green: the UK now has an opportunity to further strengthen and develop sustainability-led markets, products, and services for global investors.


A sector with access to the right talent and expertise

2.5m More than 1.1m people in the UK work in financial services and more than 1.3m in related professional services.

The UK financial sector’s unrivalled talent is what drives its success. There are 2.5 million jobs in the sector – over 1.1 million in financial services and more than 1.3 million in related professional services. Financial services firms in the UK can hire from a multitude of backgrounds and experience.

But, with low unemployment and changes to the way people work, competition for skills and talent is high. Buying in skills is no longer an option for many companies. Reskilling and training the current workforce, and opening new career pathways, is critical for ensuring the UK is future-ready.

Our global offer to business

London and the UK’s competitive strengths in support of growth

London and the UK’s competitive strengths in support of growth

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