Financial and related professional services exports from Scotland increased by 14.7% year-on-year in 2022 to £10.4bn.

That's according to a new report from TheCityUK, which showed that such exports from across Britain rose by 18.4% to £158bn, with almost half (47%) of this originating from outside London that year.

Scotland made one of the largest contributions to overall financial services exports, at 6.6%.

Financial services exports from Scotland accounted for 7.3% of Great Britain’s total financial services exports in 2022, with related professional services exports from the nation accounting for 4.1% of the total for that category.

In terms of the destination of Scotland’s financial services exports, 28% went to the EU, with the remaining 72% going to the rest of the world.

Sandy Begbie, chief executive of Scottish Financial Enterprise, said: “Scotland’s world-class financial and related professional services industry is a linchpin of our economy, providing almost 150,000 high-value jobs and helping to fund vital public services.

“The latest exports figures from TheCityUK highlight the continuing strong contribution of firms across the industry to the nation’s economy and help to underpin Scotland’s position as a critical part of what makes the UK a world-leading international financial centre, which is a key goal of our growth strategy.”

Anjalika Bardalai, chief economist and head of research at TheCityUK, said: “Financial and related professional services make a significant contribution to the UK economy through their exports, and Scotland generates a significant proportion of the industry’s trade with overseas markets.

“With nearly half of all financial and related professional services exports originating outside London, it’s clear that all Britain’s nations and regions are playing an important role in catering to international markets, contributing to local economic growth and reinforcing the UK’s status as one of the world’s leading financial services centres.”

In its report, TheCityUK set out a series of policy recommendations where industry, government and regulators can work together to support all parts of the country to continue to grow their export potential. These include:

Improving information about trade opportunities

  • Strengthen collaboration between the Office for Investment, UK government bodies and devolved policymakers, especially in new mayoral combined authorities.
  • Align government goals at all levels, linking trade promotion with the Industrial Strategy and Local Growth Plans to maximise regional specialisations.
  • Improve information sharing between devolved bodies and UK government officials to identify opportunities and better coordination of response.
  • Pilot a national brokerage scheme to connect capital with investable projects and enhance the identification, structuring and presentation of opportunities.

Growing the UK’s share of global financial and professional services opportunities

  • Swiftly agree a UK-Switzerland free trade agreement (FTA) to give UK businesses more freedom to operate in Switzerland.
  • Conclude a UK-India FTA that liberalises trade in services by easing restrictions on UK businesses operating in India.
  • Use the FTA negotiations with Gulf Cooperation Council members to embed regulatory cooperation that promotes frictionless trade and investment.
  • Put bilateral financial regulatory dialogues with markets such as the US, EU, Singapore and Japan on a more robust footing by improving transparency, industry engagement and by adopting a more outcomes focussed approach.
  • Use the models developed under the UK-Switzerland Mutual Recognition Agreement (MRA) to secure more UK trade with other leading financial centres, such as Japan and Singapore.
  • Work to boost UK and international investment (such as pensions investment) in companies and develop the UK’s ecosystem for scale-up investment.

Building leadership around key areas of future demand

  • Make the UK a global hub for data and technology by using trade and investment policy to lead in global technology and innovation.
  • Position the UK as the world’s leading gateway to international investment opportunities.
  • Target development work at markets where the industry can deliver the greatest value and capture new market opportunities.

Don't miss the latest headlines with our twice-daily newsletter - sign up here for free.