Scotland has strengthened its position as a European financial and professional services hub, with these sectors now a critical driver for both jobs and economic growth across the nation, according to the latest research from industry body TheCityUK.

Detailed analysis of the latest available data shows that financial and related professional services contributed £17.7 billion to the national economy in 2023, more than 10% of Scotland’s GVA, with the sector employing over 150,000 people.

TheCityUK’s Enabling Growth Across the UK 2025 report found that Edinburgh and Glasgow are still the main centres for Scottish financial services, with more than 94,000 people employed in the industry across the two cities, representing over 60% of all employment in the field.

Banking, life insurance and investment management 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.

Likewise, the report also found that the Scottish fintech sector is going from strength to strength, with more than 200 companies based around the country, amounting to a density of fintech firms around 60% higher than the UK average outside of London.

“Scotland has long been a key part of the UK’s financial and professional services sector, and today remains one of the most competitive financial centres in Europe,” said Sandy Begbie, chief executive of Scottish Financial Enterprise.

“Our sector growth strategy set out our ambition to grow the sector and our contribution to the economy, and with Scotland’s rich heritage, exceptional human capital and strong capability in data and AI, we are well placed to do so.”

The wider picture across the UK is equally as encouraging, with the report finding that in 2023, the latest year for which figures are available, there were over 272,000 financial and professional services firms operating in the UK, with the sector accounting for £285 billion in GVA, representing more than 12% of total economic output.

The industry now accounts for around 7.5% of the country’s workforce, or around one in every 13 jobs, growing by more than 326,000 over the last decade, with two-thirds of these jobs located outside London.

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As well as Edinburgh and Glasgow, other major centres of employment include Manchester, Birmingham, Bristol, Leeds, Cardiff, and Belfast, each hosting over 20,000 jobs. The report found that twenty-six UK cities now employ over 5,000 people in financial and related professional services, where they enjoy average earnings of £69,474, nearly double that of average UK salaries overall.

“The industry is a vital contributor to the economy, providing well-paid jobs and supporting the financial needs of people across every region and nation of the country,” said Miles Celic, CEO of TheCityUK.

“We urge the government and political leaders across the UK to work hand in glove with the industry so that, together, we can turbocharge local growth and renewal.”