Global investors still back the City – UK leads Europe in financial services investment

The UK remains Europe’s most attractive region for financial services investment, securing 73 financial services projects in 2024 – this equates to 25% of Europe’s investment total and is more than double the projects secured by second place Germany.

These investments – revealed within the Attractiveness Survey for Financial Services report, published by professional services firm EY today (9 June 2025) – came despite a 32% year-on-year fall in foreign direct investment (FDI) in the UK, markedly above the 11% fall in FDI seen across Europe as a whole last year.

The reported drop in FDI took the total number of financial services investment projects in Europe to 293 in 2024, down from 329 in 2023.

Although the UK topped EY’s investment chart, Germany – with 32 projects – and France, which secured 30 projects, also gained high levels of investment in 2024.

US investment

The UK also led on American investment volume, according to EY, with 38% of the recorded UK-based projects having funding that originated from the US – this is notably higher than the 25% average across mainland Europe.

London garnered the majority of foreign investment last year, despite a substantial fall from 81 projects in 2023 to 39 in 2024. It remained the leading city in Europe for FDI too, with Paris narrowly behind with 23 projects in 2024.

Martina Keane, financial services managing partner at EY, said: “The UK has retained its position as Europe’s most attractive destination for financial services investment, despite investment falling across the region.

”The strength and depth of the UK’s financial services sector continues to capture global investor confidence – particularly as they navigate challenging market conditions.

”But competition is fierce and while the UK industry is a clear leader, we cannot ignore the fact that investment levels have declined over the last year.

“Both industry and government are taking positive action to prioritise growth and innovation in UK financial services and this collaboration must continue. Future success rests on not just maintaining, but growing the attractiveness of the UK’s financial services sector on the global stage.

”To do this, we must build on our inherent strengths and prioritise progressive regulation, innovation and the continued establishment of key international trade relationships.”