COMMENT Beyond the established global financial giants such as London and New York, there are a handful of cities around the globe garnering attention, two of which are closer to home than you might think: Glasgow and Edinburgh.
Scotland is a vibrant and diverse international financial centre. According to Scottish Financial Enterprise, financial services is the biggest sectoral contributor to Scotland’s economy, representing £13.6bn, or 9.2% of GVA.
The sector is a significant employer, employing circa 160,000 people – around 9% national employment – and in 2022, employment in the financial and business services growth sector was highest in Edinburgh (68,000) and Glasgow (60,000), which comprised 28.9% and 25.5% of employment in this sector respectively, according to the Scottish government.
The cities’ rankings in the most recent Global Financial Services Index have also improved, signalling their growing importance in the economic landscape. But what is driving the resilience and adaptability of hubs such as Glasgow and Edinburgh, and how does it reflect broader trends in the financial services sector?
Symbiotic relationship
Architectural innovation emerges as a cornerstone of economic growth and corporate allure. Edinburgh’s redevelopment of the former Royal Infirmary site at Quartermile and Glasgow’s Buchanan Wharf (home to Barclays’ European HQ) showcase the transformative power of urban renewal with mixed-use developments, where adaptive reuse breathes new life into historic areas.
Edinburgh’s Old Town and New Town house its financial heavyweights, blending heritage with modernity.
These developments underscore the symbiotic relationship between architectural ingenuity and economic revitalisation. As cities worldwide strive to attract investment and talent, the evolution of urban architecture emerges not just as a matter of physical construction but as a strategic imperative for fostering competitiveness and prosperity.
Top talent is crucial for the financial services industry, driving innovation and growth. In Glasgow, firms including Barclays and JP Morgan have established a strong presence by accessing the city’s deep pool of tech talent. The Technology and Innovation Centre at the University of Strathclyde plays a key role in fostering collaboration between academia and industry, nurturing skilled graduates and promoting innovation.
Glasgow’s highly skilled technology workforce, along with its supportive start-up and entrepreneur ecosystem, creates an ideal environment for financial firms to lead in developing new solutions and staying ahead of the competition.
Urban connectivity
Urban connectivity and infrastructure are pivotal in shaping the landscape for financial services firms. For example, Buchanan Wharf, which has seen the conversion of Glasgow’s waterfront from past industrial use to a vibrant business hub, owes its appeal not only to its ample supply of modern office space but also to its exceptional connectivity to key transport networks. Situated near Glasgow’s central railway stations and major road networks, Buchanan Wharf offers good accessibility for employees and clients alike.
Initiatives such as this exemplify how urban mobility and infrastructure developments are transforming cities, supporting business activities and fostering dynamic urban centres.
Glasgow and Edinburgh, along with other cities such as San Diego, Sydney and Melbourne, showcase a variety of approaches to adapting the needs of modern businesses within financial centres. Each city exemplifies its unique strategy to integrate connectivity, architectural innovation and talent ecosystems into their urban fabric, illustrating the diverse ways that urban development can support economic growth.
These cases offer crucial insights for corporate real estate leaders, underscoring the importance of tailored strategies that consider local conditions and global trends to enhance competitiveness and sustainability in the financial services sector.
Michelle Buckman is head of financial and professional services, Europe at CBRE
