New research from TheCityUK, the financial and professional services membership body, has found that the financial industry is a critical driving force of jobs and economic growth across the nation.

According to its Enabling growth across the UK 2024 report, Scotland remains one of Europe’s leading financial centres, employing 149,000 people or 5.7% of Scotland’s total workforce, and contributing 10% to the nation’s economy in 2022.

Edinburgh and Glasgow make up a sizeable proportion of Scotland’s overall financial and related professional services industry, employing 57,290 and 34,800 people respectively.

Glasgow has particular strengths in insurance, asset management, and legal services, while Edinburgh is a leader in banking and investment management, the research highlighted.

Beyond these two cities, Fife and Aberdeen are also recognised as major financial hubs, with each location employing over 5,000 people.

The report also sets out detailed policy proposals that would maximise the role of financial and related professional services in driving nationwide growth.

These include planning reform for growth, greater consistency in the powers offered to existing local authorities, creating an employer-led skills system, and strengthening connectivity.

Speaking on the findings, Sandy Begbie CBE, the chief executive of Scottish Financial Enterprise, said: “Scotland’s world-class financial and related professional services industry is the engine of growth in the Scottish economy.

“The latest TheCityUK figures underline our vast contribution, with the number of jobs in the sector increasing to 149,000 and the value we generate for the Scottish economy increasing by around half a billion to £14.76bn, up from 9.6% to 10% of national GVA.

“With a clear growth strategy in place, we are confident that our economic contribution will develop even further in the years ahead as we take advantage of new opportunities for growth in areas like green and sustainable finance, fintech, and emerging technologies like artificial intelligence.

“The strength of our ecosystem and our distinctive capability as a regional technology hub have helped us to attract record amounts of inward investment from some of the largest global financial institutions.

“It’s also clear that we are operating in an increasingly competitive marketplace, both domestically and internationally, leaving no room for complacency.

“We will continue working closely with the Scottish and UK Governments, making the case for a strong business environment and policies that put financial services at the heart of Scotland’s economic growth agenda.”

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TheCityUK‘s Miles Celic, who serves as chief executive officer, also commented: “With growth the number one priority for policymakers across the country, financial and related professional services must be central to this strategy.

“This industry is a dynamic force driving in Scotland, delivering high productivity and well-paid jobs. And there is more it can do to support growth and jobs. We urge leaders at all levels to prioritise policies that can unleash that potential.”