Financial services investment into Europe rises by 21%

Foreign direct investment into European financial services increased by 21% last year, according to a new report by consulting firm EY.

The group’s latest European attractiveness survey for financial services shows the region attracted 355 finance projects in 2025. 

The growth occurred despite a 7% drop in total cross-border investment across all other business sectors.

The UK remained the leading destination for financial capital by securing 85 developments, representing a 16% year-on-year increase. 

France finished in second place with 45 projects, while Germany fell to third place after its total dropped by 22% to 25 schemes.

London extended its lead over continental cities by attracting 59 financial projects, followed by Paris with 30 and Milan with 20. 

The data also reveals that employment associated with these European investment programmes rose 15% to 9,762 jobs.

The US remained the largest source of finance capital into Europe, backing 101 projects to account for 29% of the total regional market. 

A separate three-year survey of global investors ranked the UK and Hong Kong as the most attractive countries for future allocations.

Martina Keane, EY UK and Ireland financial services leader, said: “At a time when wider European investment is slowing, it is impressive – though not surprising – that the UK financial services sector continues to attract significant international capital, rooted in its strong governance, world-class talent, and continued investment in technology.

“The uplift in investment projects in 2025, and the UK accounting for just shy of a quarter of all European FDI, underlines the sector’s resilience in uncertain times, and confirms its position as a priority destination for firms looking to build, scale, and succeed. Despite its clear lead within Europe however, competition for inbound investment is intensifying.”

Omar Ali, EY global financial services leader, added: “Europe’s financial sector sits at the centre of the wider global industry, offering broad access to deep capital markets, world-class talent, and market stability despite challenging geopolitics. While cost matters, these are the factors increasingly swaying global investment decisions.

“But competition from outside of Europe’s borders is fierce and rising, with New York, Hong Kong, and Singapore all offering very credible alternatives. To compete for the growing volume of inbound FDI projects, European finance hubs that offer greater certainty to founders and investors by strengthening capital pathways, deepening institutional investor participation, better-connecting innovation ecosystems, and demonstrating a united regional approach over fragmentation, will be best positioned.”