The UK ranked first in the City of London Corporation’s 2024 benchmarking report – Our Global Offer to Business for access to talent and skills. The latest edition of the Boston Consulting Group’s Decoding Global Talent research has again ranked London first choice of place to move for work amongst mobile workers. This competitive edge explains why so many international financial and professional services (FPS) firms choose to locate in the UK. Notably, the draw is especially strong among US firms, with the US accounting for 40% of FDI into UK FPS between 2019 and 2023.
Specialist knowledge makes the UK an ideal location for international firms.
The UK’s talent pool is the bedrock of its world-class FPS sector. Whether a start-up is looking to scale up or an established firm is expanding into new markets, the quality and diversity of the UK’s labour market mean FPS firms can rely on its workers to propel their growth.
The UK’s talent pool is highly experienced across the breadth of the FPS sector. US firms will find specialist talent in numerous industries such as banking, asset management, insurance, management consulting, legal services, ESG, and fintech. Jillien Flores, Head of Global Government Affairs at Managed Funds Association, highlights this competitive advantage:
“The investment management talent in London is really second to none. Our members see that as a real attraction to being on the ground in London.”
The UK’s expertise in ESG is especially relevant, particularly in areas like climate risk. The US is the largest market for climate risk-related insurance services by demand. Yet local US insurers cannot always take on the large complex risks associated with climate change. Heightened risks from climate related events make finding the right protection and talent to manage and insure against climate-related events essential.
Aon is a leading global professional services firm with expert knowledge in complex deals including climate risk. The company has benefited from the London Market’s technical ability and sophisticated platforms. Raphaëlle Vallet, Head of Climate Solutions & Innovation at Aon, notes that “the UK is a great place to have forward-thinking conversations” thanks to the UK’s acceleration of and leadership in innovative insurance products and services. Looking ahead, US firms can expect the trend to continue in the area of ESG.
The UK is also producing expert talent to support climate risk management. According to the CFA and Chartered Bankers Institute, 12,000 professionals have either enrolled or completed an ESG accreditation. This talent makes the UK the ideal location from which to recruit workers to support the growing US demand for climate insurance and advisory services.
London workers can turbocharge the digital transformation of FPS firms.
With tech becoming increasingly intertwined with financial and professional services, London offers a unique ecosystem for FPS firms to recruit talent with practical experience in emerging technologies. Data compiled by Sifted show that London is home to 12.3% of all AI engineering talent in Europe. This is the highest share among European cities. Moreover, it dwarfs the second ranked city, Paris, whose share stands at just 3.8%. This sophisticated talent pool will prove indispensable as firms increasingly adopt AI to streamline their operations and improve the customer experience. These data were echoed by American fintech firm, Plaid, which notes, “From a talent and recruitment perspective, the UK is exceptional.”