The UK has retained its position as the leading European destination for financial services FDI, according to EY’s 2025 Attractiveness Survey, despite a sharp 32% drop in the number of new projects. The report shows the UK secured 73 financial services foreign direct investment (FDI) projects in 2024, down from 108 in 2023, yet still far ahead of competitors Germany (32 projects) and France (30).
While the total number of financial services FDI projects across Europe fell 11%—from 329 in 2023 to 293 in 2024—the UK accounted for a quarter of all projects, although this was down from 33% the previous year. Germany and France retained steady shares at 11% and 10%, respectively.
London remained Europe’s most attractive city for financial services investment, despite a 52% drop in project numbers—from 81 in 2023 to 39 in 2024. It also led in new project wins, recording 34, down from 69 the previous year. Paris followed with 23 projects, while Madrid and Zurich tied for third with 14 each.
Despite the decline, investor confidence in the UK remains strong. A May 2025 EY investor sentiment survey found that 86% of global financial services investors believe the UK will either maintain or improve its attractiveness over the next three years—up from 75% in 2024. London was ranked the most attractive European city for investment in the next 12 months (54%), ahead of Frankfurt (45%) and Paris (40%).
The US remained the largest source of investment into European financial services, accounting for 72 projects in 2024, despite a 21% drop from 2023. The UK captured 38% of these projects, outperforming its 10-year average of 34%.
Other markets showed notable growth. Switzerland rose to fourth in the European ranking with a 60% year-on-year increase in financial services FDI (24 projects, up from 15). Spain climbed to fifth (22 projects), Italy to sixth (17), and Luxembourg to seventh (12).
EY UK & Ireland Financial Services Managing Partner Martina Keane warned that while the UK retains a leading position, its declining numbers signal a need for renewed focus. “Future success depends on progressive regulation, innovation, and international trade relationships,” she said. “We must grow—not just maintain—our global competitiveness.”
EY’s Global Financial Services Leader Omar Ali added that despite geopolitical uncertainty, cross-border investment remains critical. “Switzerland, Spain, Italy and Luxembourg are gaining investor confidence through progressive policy and sector expertise,” he said.
Amid US and UK tariff shifts, investor sentiment has tilted toward the UK, with 44% of respondents more likely to invest there—compared to 39% for the EU and 32% for the US. However, some investors also reported increased caution in response to new trade policies.
Investors highlighted key strategic priorities including support for small and medium-sized businesses, investment in tech and innovation, R&D funding, and access to capital.
