Owen Kelly on Scotland's Financial Services Industry
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Owen Kelly is Chief Executive of Scottish Financial Enterprise (SFE), the representative body for Scotland's financial services industry. Here he writes for TalentScotland about the current climate in Scotland
Like all other global financial centres, Scotland is experiencing a turbulent time in parts of its financial services industry. But, while some companies restructure and refocus, others are growing their Scottish operations. And all have an eye firmly set on the future.
History
The industry’s roots date back to 1695 when the Bank of Scotland was established in Edinburgh, followed by the Royal Bank of Scotland in 1727. As financial services broadened its remit and insurance grew as a business, Scottish Widows was created in Edinburgh in 1815, and Standard Life a decade later.
The Clydesdale Bank was established in Glasgow in 1838, and these companies have been joined by many other international names such as AEGON UK and Bright Grey, which incorporate Scottish Equitable and Scottish Life.
Asset management has become a strength in more recent times, with Aberdeen Asset Management and Martin Currie just two of Scotland’s most prominent companies specialising in this sector.
Diversity
The modern Scottish industry is recognised for its diversity, and its strengths in banking; life assurance and pensions, investment management, and asset servicing. It also has vibrant general insurance and corporate finance and broking services sectors, and a strong community of professional advisors and other companies that support the industry.
In recent years the industry has become truly global, with many of our companies operating around the world, and many overseas companies setting up operations in Scotland. The latest City of London index of global financial centres lists Edinburgh as 20thth in the world, above Washington D.C. and Dubai.
Around 90,000 Scots working in the industry, and an estimated 100,000 people are employed in related support businesses.
Challenges and opportunities
But of course the worldwide economic downturn is having an impact. Being a serious global financial centre also means that Scottish companies must learn from recent history and adapt to the new environment.
RBS and the Bank of Scotland (now part of Lloyds Banking Group) have made the headlines as they work with the UK Government to restructure and return to stability.
Other companies will be challenged. But Scotland has also seen some recent good news announcements too, with Esure creating 500 new jobs in Glasgow, and Tesco Personal Finance setting up its new UK headquarters in Edinburgh, with 200 new jobs added to its workforce in the capital.
And Scotland’s world-class universities (including Edinburgh, Heriot-Watt and Glasgow) are leading the way in offering top quality undergraduate and post-graduate degrees at the cutting edge of financial education.
The industry will use its experience, knowledge and skilled workforce to make necessary changes to get through this period. And SFE will work with partner organisations to continue to emphasise the attractions of working in Scotland.
Scottish Financial Enterprise
Scottish Financial Enterprise (SFE) is the representative body for Scotland's financial services industry. SFE's member companies range in size from global organisations headquartered in Scotland to small, specialist support companies.
SFE works closely with the main public sector organisations and other bodies that have an interest in the financial services industry. SFE also champions innovation in the industry, running the annual Innovators Awards, in association with Ernst & Young.
Owen Kelly, Chief Executive, Scottish Financial Enterprise
More Information
Scottish Financial Enterprise
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