UK’s position as a financial services leader is under threat

Four in ten (39%) senior financial professionals working in the UK say the country’s dominance in financial services has weakened in recent years, according to research by CRIF.

As a result, nearly half (44%) say they no longer consider the country a global leader in financial services, with the top reasons behind this including Brexit’s impact on firms’ ability to do business globally (42%); stagnant growth of the sector in recent years (35%), staff reductions (35%), and a lack of investment in critical areas including fintech (31%).

When asked which cities they considered to be the world’s top financial centres, UK-based financial services professionals still placed London second, only marginally behind New York (63% vs. 59%).

However, Middle Eastern and Asian cities made up the rest of the top-ranking cities, with European cities such as Zurich, Frankfurt and Paris now behind counterparts, ranking eighth, ninth, and tenth respectively.

The views of senior financial professionals are also split on whether the UK can reverse this perceived decline. One in five (21%) of those who believe the UK is falling behind also believe this decline can be reversed, and London can continue to be a leader in financial services. However, a similar proportion (20%) remains sceptical, believing the UK will struggle to regain its standing as a global financial hub.

In terms of the biggest challenges now facing financial services companies, professionals highlighted growing cybersecurity and fraud risks (91%), greater competition in the sector (82%) and increased regulation (81%) as the biggest challenges their businesses must contend with.

Sara Costantini, Regional Director for the UK & Ireland at CRIF said “An undisputed epicentre of global finance, London’s status as a world-leading financial hub is now coming under pressure – and it’s those working within the industry who are sounding the alarm.

“To remain a global hub for finance, UK leaders across government and the industry must work together to address these challenges and invest more boldly in financial technology and the infrastructure underpinning it, while ensuring a balanced, proportionate approach to regulation. Alongside this, adopting the latest innovations to fight fraud and protect systems from malicious actors is now critical.

“Without decisive action, new markets will continue to catch-up with and challenge London’s long-held crown as a leader in financial services.”

Which cities do finance leaders consider to be the world’s top financial centres?

Rank	City	%
1.	New York	63%
2.	London	59%
3.	Dubai	25%
4.	Tokyo	23%
5.	Hong Kong	20%
6.	Singapore	17%
7.	Shanghai	17%
8.	Zurich	11%
9.	Frankfurt	9%
10.	Paris	8%