The UK attracted 76 financial services FDI projects in 2022, a surge from 63 projects in 2021. The majority of these were in London, which secured 46 projects, with Scotland placing second with eight projects, a significant increase from three in 2021.

Scotland’s second-place status marks its reclamation of its longstanding position following an exception in 2021. Out of the eight Scottish projects, five were expansions of existing endeavours, while three were fresh ventures.

Edinburgh and Glasgow were the sites of both expansion and new project investments. EY is set to release a comprehensive FDI attractiveness survey for Scotland later this month.

Sue Dawe, EY Scotland’s managing partner for financial services, said: “This is great news for Scotland’s financial services sector. Scotland has deep roots in financial services, and it is positive that we can report improved investor confidence and growth in foreign direct investment projects.

“To see a solid mix of both new and expanded financial services projects in our major cities as well as our return to being the top location outside London shows that Scotland is delivering for investors.”

Sandy Begbie, chief executive of Scottish Financial Enterprise, added: “Scotland’s financial services industry has a number of major strengths for investors, from depth, breadth, and maturity of our ecosystem to talent and innovation, to our increasingly strong reputation as a global centre for green finance and fintech.

“We also recognise that we are in an increasingly competitive domestic and international marketplace, leaving no room for complacency.”

In a broader European context, the UK extended its lead over second-placed France, which garnered 45 projects in 2022, down from 60 in 2021. With an overall 5% growth in financial services FDI across Europe, the UK’s share increased from 23% in 2021 to 26% in 2022. The UK was the primary beneficiary of US investment, securing 21 projects, an uptick of 24% from 2021.