Financial Services in Scotland
History
Financial services in Scotland dates back to the enlightenment period. Banking was growing rapidly in many European cities as traders and merchants looked to finance new ventures in the Americas and financiers looked to benefit from this burgeoning realm of trade. Edinburgh became a central player in this new banking boom, with Bank of Scotland opening in 1695 followed by Royal Bank of Scotland in 1727.
An important practice that shaped Scotland’s early strength in banking was the ability to issue banknotes – permitted for Bank of Scotland, The Royal Bank of Scotland and later Clydesdale Bank (now part of Virgin Money).
And it wasn’t just banking. The insurance sector in Scotland dates back to the early 1700s when the increase in international trade led to a requirement for marine insurance for many Scottish export and import companies. Life Insurance was invented by two Scottish clergymen, Wallace and Webster, in 1748 with the Scottish Ministers Widows Fund.
The birth of asset management also has roots in Scotland. Dundonian Robert Fleming was one of the early pioneers of the industry. The primary investors were the owners of the Dundee based jute industry who wanted to invest their profits.
Modern day
Today, Scotland is a vibrant and diverse international financial centre, home to a huge variety of organisations. These range from global institutions headquartered in Scotland like Bank of Scotland, Royal Bank of Scotland, Abrdn and Baillie Gifford; UK and international companies with substantial operations in Scotland like Barclays, Blackrock, Phoenix Group, Morgan Stanley and Royal London; and small, locally based, fintechs and support companies, drawn from all areas of financial and related professional services.
Here are some facts about the financial services sector:
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Scotland’s financial services sector is a linchpin of the economy: it provides the loans that allow people to buy their own home or start or grow a business; it manages the funds that invest in the economy, helping people and businesses plan for the future; and it protects and insures the things that matter to families and businesses across the country.
The sector is the biggest sectoral contributor to Scotland’s economy, representing £13.6 billion or 9.2% of GVA
Scotland’s financial and related professional services sector is a significant employer, employs 160,000 people – around 9% national employment
There are around £690 billion of assets under management in Scotland, investing in the economy and helping people to save for retirement
Nearly 90,000 Scottish businesses supported with government-backed Covid-19 loans totalling £3.4 billion.
Scotland’s financial and related professional services sector is a valuable source of tax revenue, helping to fund the vital public services we all rely on.
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Scotland’s financial and related professional services industry is highly regarded within the UK and internationally and remains an attractive location for small start-ups right through to global companies which choose to operate here.
It continues to attract many of the most innovative companies and talented people from every background, ensuring continued competitiveness, growth and development of our sector and the wider economy.
Up to 40% lower costs for property and salary compared to London.
Part of a supportive ecosystem made up of 2000+ financial and related professional services businesses
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COP26 was a landmark moment for financial and related professional services, solidifying the industry’s commitment to lead the journey to net zero.
For Scotland, the next stage of our national economic development needs to be transformational, taking full advantage of our key industries, assets and natural resources. Scotland’s financial and related professional services industry aims to be at the centre of this ambition.
Our objective is to be a globally recognised centre of excellence for green finance. We have a the talent, the business environment, the expertise and infrastructure to make this happen.
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Access to talent is a critical success factor for our sector and we must ensure we have a sustainable pipeline of talent from our schools, colleges and universities, while also supporting people to upskill, reskill and adapt to technological change.
Five Scottish universities are in the world’s top 200, according to the latest Times Higher Education rankings, putting them in the top one per cent of the world’s universities.
Scotland has a network of 26 colleges covering every part of the country, with 265,000 students studying across 23,000 courses each year.
Keep scrolling to find out about the different career opportunities the industry has to offer.
Looking towards the future
The world of finance is constantly adapting to new technology and changing customer needs.
Innovative new digital finance products hit the market every day, making transactions and interactions simpler and more manageable for customers, whilst simultaneously becoming more sophisticated and secure.
When it comes to the continued growth of financial technology, Scotland is a key international player with one of the strongest fintech ecosystems in Europe, a high concentration of university expertise, a large talent pool, vibrant tech scene and access to the broader financial services industry.
Our partners at Fintech Scotland are at heart of this ecosystem supporting its continued growth and development.
Careers in financial services
There are a huge variety of roles within the financial services industry which require different skills and a diversity of people from across society to fill them
Access to diverse and inclusive talent is a critical success factor for financial services in Scotland, and there are various pathways available into the sector, from apprenticeships to college courses through, to graduate schemes. The sector also gives people opportunities to upskill, reskill and adapt to technological change.
Click here to find out more about careers in financial services.