The financial services sector in Scotland has evolved in recent decades, with a loosening of some traditions and fewer people employed, but official data shows it continues to be a major driver of GDP growth in the economy.
Figures contained within the Scottish government’s sectoral skills assessment report for financial services shows 7.2 per cent of Scotland’s total economic output in 2023 came from financial services.
The sector also proved more economically volatile than the wider economy, in 2022, the GDP contribution of financial services declined by 2.1 per cent, during a period where the wider Scottish economy grew by 4.3 per cent.
2022 was an acutely volatile year in financial markets and for financial services firms, with markets generally trending downwards as investors feared the consequences of higher interest rates on asset prices.
Where a decline is more evident is in the number of people employed within the financial services sector - This dropped by 5 per cent over the decade to 2023.
In 2023 the total number of people employed in the financial services sector in Scotland was 69,600, of which 29,900 were based in the greater Edinburgh area, and just over 23,000 in the greater Glasgow area.
However, technology has eliminated some Scottish financial services roles altogether, while enabling others to be outsourced to the regions.
Today (August 20), FT Adviser will publish an investigation series into financial services in Scotland, exploring the history and evolution of the sector.
The series will also look forward to what the future may hold for Scottish financial services.
david.thorpe@ft.com
