The UK has once again confirmed its position as Europe’s most attractive destination for foreign direct investment (FDI) in financial services, according to EY’s latest Attractiveness Survey for Financial Services.
UK Leads Europe in Financial Services FDI
In 2024, the UK attracted 73 financial services FDI projects, securing the top spot in Europe despite a 32% year-on-year drop (down from 108 in 2023). This remains more than double the number recorded by Germany (32 projects, down 16%) and significantly ahead of France (30 projects, down 23%).
In total, Europe saw 293 financial services FDI projects in 2024, compared to 329 in 2023 — a decrease of 11%. Yet, the UK managed to claim 25% of all financial services FDI projects across the continent, retaining its influence.
London is still Leading
London remains the top European city for financial services FDI, though project numbers dropped significantly from 81 in 2023 to 39 in 2024. Paris followed with 23 projects (down from 31), while Madrid and Zurich shared third place with 14 projects each — both showing year-on-year growth.
When focusing on new financial services projects:
- London leads with 34
- Madrid follows with 14
- Milan (13), Zurich (12), and Munich (11) all climbed significantly
- Paris attracted 11, a notable decrease from 18 the previous year
The UK Remains the Prime Destination for US Investment
The United States remained the largest investor in European financial services, backing 72 projects in 2024. The UK was the top recipient of US investment, securing 28 projects , which accounted for 38% of US-backed FDI in Europe.
Switzerland, Spain, Italy, and Luxembourg Buck the Trend
Not all markets saw declines. Several countries experienced a boost in FDI:
- Switzerland: 24 projects (up 60%)
- Spain: 22 projects (up 29%)
- Italy: 17 projects (up 113%)
- Luxembourg: 12 projects (up 20%)
These nations stood out for their progressive policy environments and specialist sector expertise — key attractors for global financial services investors.
Global Sentiment Remains Positive Towards the UK
Investor confidence in the UK remains strong. According to the latest data, 86% of investors believe the UK will maintain or improve its attractiveness for financial services investment over the next three years, up from 75% in 2024. London continues to lead as the most attractive European city for foreign direct investment, cited by 54% of investors, ahead of Frankfurt (45%), Paris (40%), and Dublin (37%). At the country level, the UK ranks second (45%) behind Germany (47%) as the most attractive European destination for financial services investment.
Globally, London’s key rivals for investment include New York (59%), Paris (41%), Frankfurt (43%), Singapore (39%), and Hong Kong (39%).
Recent geopolitical developments, including tariff announcements, have caused some investor hesitation. Yet, 44% of respondents say they are more likely to invest in the UK than in the EU (39%) or the US (32%) following recent trade shifts.
What Does This Mean for Businesses?
EY’s findings confirm that investor confidence in the UK remains strong , especially in the financial services sector. The UK’s continued focus on progressive regulation, innovation, and trade relationships will be critical in maintaining its lead as a financial hub in an increasingly competitive global market.
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