The UK enjoys a clear competitive advantage in financial and related professional services. This Key Facts report serves as a reminder of why its leading global position in international financial markets should be valued and supported.
The UK's trade surplus in financial services of $71bn in 2013, was more than twice the next largest trade surpluses recorded by the US, Luxembourg and Switzerland. This is larger than the combined surplus of all other net exporting industries in the UK. The UK has the leading share of trading in many international financial markets such as cross border bank lending (17%), interest rates OTC derivatives turnover (49%), international insurance premium income (22%) and foreign exchange trading (41%). It is also a global leader in providing professional services.
The number of financial centres seeking international business is growing. The stability, transparency, fairness of treatment of all parties and skills base are just some of the factors which give the UK its advantages. The UK's major competitors include New York, Hong Kong and Singapore, the latter two gaining advantage in recent years from the shifting global trade patterns. This is not a zero sum game. The growth of emerging international financial centres may increase their market share, but at the same time this will grow London's business volumes. The interdependent network of centres provides new opportunities and will both reflect and enable major global business needs.
An important and necessary step forward in recognising the value of the industry came with the creating of the Financial Service Trade and investment Board (FSTIB) in 2013. The FSTIB brings HM Treasury, UKTI, FCO, BIS and TheCityUK together to identify trade and investment priorities and to support UK based firms in pursuing these vigorously across the globe. We look forward to continuing to work with the Government, our members and the wider financial and related professional services industry to extend the promotion of the sector in international markets.
FTSE Mondo Visione Exchanges Index:
UK's Financial Services Trade Surplus Largest In The World, Dwarfing Its Nearest Rivals
Date 03/07/2014