‘Call to action’ as Scotland’s financial services sector looks to add 16,000 jobs
“Scotland’s financial services sector must continue to reinforce existing strengths and address potential barriers to growth” – Sue Dawe, EY Scotland
Scotland’s financial services industry has the potential to add 16,000 jobs and boost output by a fifth, new research today suggests.
Auditing and business services giant EY said the ambitious goals could be met if “key competitive advantages are harnessed and barriers to growth addressed”. Its study, which is based on detailed economic analysis, in-depth interviews and a survey of senior leaders within the sector, outlines measures that could raise compound yearly gross value added (GVA - a measure of economic output) growth to 4 per cent, up from 2.9 per cent currently.
Delivering such growth could raise employment across Scottish financial services, not including related professional services, by as much as 18 per cent by 2028, at a compound annual growth of 3.4 per cent. This would add 16,000 jobs to the nation’s core financial services industry and bring total employment to 105,000 by 2028 (up from 89,000 today).
Sue Dawe, EY Scotland managing partner for financial services, said: “This report is not just a reflection of current conditions but a call to action for all involved to collaborate on the continued success and growth of the sector. Scotland’s financial services sector must continue to reinforce existing strengths and address potential barriers to growth.
“Central to this fantastic growth narrative is the recognition that technology infrastructure and innovation, a robust regulatory and legal framework, and demographics and labour supply will play a vital role in shaping Scotland’s financial services future.
“The sector has already done a lot of the thinking about where we need to go, and it is reinforced by this research; we now have to turn that strategy into action, driving sustainable growth and prosperity for years to come.”
Sandy Begbie, chief executive of industry body Scottish Financial Enterprise, said: “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.
“While there are still some ongoing challenges facing our industry, such as high personal tax, a lack of government support in R&D and challenges surrounding government funding for further education which risks pushing our brightest and best out of Scottish universities, it is pleasing to see our sector continuing to strengthen.”
Around a third of Scotland’s financial services leaders highlighted the gender balance and cultural diversity and inclusivity of the workforce as a significant advantage over international peers, with a further third highlighting the strong availability of skills in key areas, such as emerging technologies, as a competitive advantage.
A study earlier this month by industry body TheCityUK showed that Scotland had further strengthened its position as a top European financial and related professional services hub.
It said the overall sector contributed £17.7 billion to the national economy - 10.5 per cent of Scotland’s GVA - in 2023, based on the latest available data. Some 151,000 people are employed in banking, financial and related professional services in Scotland, according to the organisation’s report.
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