Pursuing world-class promotion and interconnectivity

The future success of UK-based financial professional services (FPS) depends on bringing a compelling offer to the world. That requires world class promotion. It also rests on a network of strong relationships within a robust international framework.

Big move #8: showcase the UK’s FPS firms like never before through the creation of an FPS Knowledge and Support Hub.

The international promotion of the UK’s financial industry relies on a network of promotion agencies at home and abroad. With targeted support, these organisations could have far stronger impact. An FPS Knowledge and Support Hub could support international messaging and promotion by highlighting compelling narratives, messaging and collateral of existing promotion efforts; supporting the coordination and advocacy efforts of others (via their own direct advocacy); and providing further industry research.

This would help to increase FPS foreign direct investment (FDI) into the UK and exports abroad, in turn supporting the broader economy’s growth. An illustrative estimate demonstrates the potential benefits.

For example, if the hub could achieve an uptick of FPS FDI worth up to 6% of 2022 levels, then up to £0.7bn additional FPS FDI could be captured between 2024 and 2030. 

As another example, if the hub could contribute an average additional uplift of approximately 0.9% compound annual growth on top of the forecasted growth of UK goods and services exports, this would result in an increase of up to £24bn in FS exports to be achieved between 2024-2030. 

Big move #9: create innovative networks across the world.

The UK should flip its trade policy to focus on services, as much as goods. Trade negotiators should use the full “trade toolbox” including digital and, where appropriate, mutual recognition agreements of professional qualifications or regulatory frameworks.

It should create mechanisms for partnership across government, regulators, and industry to discuss trade priorities, better incorporating industry views. One such mechanism could be the FPS Partnership Council described as part of big move #1.

Finally, government should look to establish international forums for collaboration. One such mechanism could be multijurisdictional sandboxes, building on the work of the Global Financial Innovation Network (GFIN). The sandboxes could develop interoperable regulatory approaches in response to emerging technologies and, potentially, authorisation in multiple jurisdictions.