State of the sector: annual review of UK financial services 2022

The financial services sector is a major driver of the UK’s economy. Securing its competitiveness is critical for future prosperity across the economy. The State of the Sector report is a world first. It has been developed, in partnership, by the City of London Corporation and HM Treasury, to provide a robust evidence-based assessment of the competitiveness of UK financial services. Repeated annually, it will be a mechanism that drives competitiveness year on year. 

The report shows where the UK is world leading, what steps have been taken to improve the overall environment for finance so far, and considers areas for further reform.  Drawing on both independent metrics, and wide consultation with the industry, it delivers on a key recommendation of Lord Hill’s UK Listing Review: to publish an annual review on the international attractiveness of the sector.

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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 a strong financial centre because of its international reach. The financial services sector’s activity is based on strong market access, alignment and coherence with other jurisdictions. To remain attractive, provide domestic and international firms with the funding they need, and continue to innovate in financial tools and products, the UK should remain aligned with global standards and seek outcomes-based trading relationships with global markets.


The SEC Armadillo, Glasgow, with the text 'Download the State of the Sector' report

An integrated ecosystem driving growth across the UK

The depth and breadth of the UK’s finance ecosystem is unique. There is a dense network of expertise and a co-location of banking, insurance, investment management, accounting, legal services, consulting and other related services. Together they help businesses access finance, create jobs and drive growth across the UK. A common sense of purpose, shared across all parts of Government and policymaking, regulators, trade associations and firms can strengthen the sector for years to come.  


Birmingham's Bullring, with the text 'Download the State of the Sector' report

A once-in-a-generation opportunity to become more nimble, agile and proportionate

The UK’s framework for financial services regulation is internationally respected and plays a major role in the UK’s attractiveness for global businesses. With market-leading ideas, the UK has been a pioneer in embedding innovation in regulatory frameworks. Reforms offer a once-in-a-generation opportunity to ensure the regulatory framework in the UK stays agile, coherent and competitive, while delivering better outcomes for consumers and businesses. Seizing this opportunity will require regulators with high operational standards and adequate resourcing.


Princes Street, Edinburgh, with the text 'Download the State of the Sector' report

A sector at the forefront of innovation

The UK is a leading global fintech hub. It brings together innovative minds, supportive policymakers and the finance required for ideas to take off. Pioneering innovative ideas laid the foundation for a thriving ecosystem. The right policy support and culture change will deliver further growth, support scaling businesses and drive the adoption of technology across the sector.


Leeds Dock, with the text 'Download the State of the Sector' report

A sector greening the world’s financial system

The future of finance is green. COP26 reaffirmed the UK’s ambition to be the best place in the world for sustainable finance. The UK remains the only financial centre that leads in both conventional and green financial centre rankings. Now is the time to develop and strengthen a market where global participants can find the fullest spectrum of services and products.


Beetham Tower, Manchester, with the text 'Download the State of the Sector' report

A sector with access to the right talent and expertise

The UK is a world-leading financial centre because of its people. The expertise, talent and skills available in the UK are nearly unrivalled. But the world is changing. Now is the time to ensure we have the right skills going forward, remain attractive to highly skilled international talent and continue to provide expertise across the economy.

Queen's University, Belfast, with the text 'Download the State of the Sector' report