Financial services investment into Europe rose in 2025, with UK retaining top spot

• While total foreign direct investment (FDI) into Europe fell for the third year running in 2025, financial services FDI rose 21% across the region
• The UK remains Europe’s leading financial services destination, attracting 85 projects in 2025 (+ 16% yoy), followed by France with 45 (+ 50% yoy) and Germany with 25 (- 22% yoy)
• Globally, the UK and Hong Kong are seen by investors as the most attractive countries for future FDI, followed by France, the US, and Singapore

While total foreign direct investment (FDI) into Europe fell 7% year-on-year (yoy) and by 14% yoy in the UK in 2025, financial services FDI reached its highest volume since 2019, with projects up 21% yoy across the region, according to EY’s latest European Attractiveness Survey for Financial Services. The UK continues to be Europe’s most attractive location for FDI into financial services, with projects up 16% yoy in 2025, followed by France and Germany.

The UK accounted for almost a quarter (24%) of all European financial services FDI projects in 2025 (just under the 25% recorded in 2024). France moved into second place with 45 projects, strengthening its share of European activity from 10% to 13%, and overtaking Germany, in third place with 25 projects, and a 7% (from 11%) share in activity. Switzerland ranked fourth with 22 projects (6% of all European projects), and Italy completed the top five with 20 (6% of European financial services activity).

While not in the top five, Luxembourg and Poland recorded their highest number of projects in a decade (18 and 14 respectively).

European destination of inbound financial services projects

Chart ranking European countries by 2025 FDI project numbers with yoy 2024 and 2023 comparisons

City focus: London extends lead over continental competitors

London has strengthened its position as the leading European city for financial services FDI in 2025, attracting 59 projects (up from 38 in 2024). Paris ranked second with 30 projects (up from 23 in 2024), Milan was third with 20 projects (up from 13), followed by Luxembourg (17, up from 11) and Madrid (15, up from 14).

Martina Keane, EY UK & Ireland Financial Services Leader, comments: “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. A 10-year lookback shows that France, Poland and Luxembourg are on strong growth trajectories. Going forward, it’s therefore essential that government, industry, and regulators in the UK continue collaborating to maintain global investor confidence.”

Rise in new financial services projects across Europe

Alongside the expansion of existing projects, the number of ‘new’ financial services projects across Europe rose 18%, (275 of the total 355 projects), representing the highest level in six years. France received 27 new projects in 2025, representing a 59% yoy increase, Luxembourg received 18 new projects (64% yoy increase), and the UK received 63 new projects (a 19% yoy increase). By contrast, the number of new financial services projects in Germany fell by 14% (to 24 new projects) and by 5% in Switzerland (to 20 new projects).

US-backed projects into Europe continue to grow

Although broader US investment into Europe has declined or stagnated in three of the last four years, US financial services investment into Europe rose significantly in 2025.

The US invested in 101 financial services projects across Europe in 2025 – a 40% increase on 2024 (72). This means that US-backed projects accounted for 29% of all European financial services FDI projects in 2025, up from 25% in 2024, with the US remaining the largest source of financial services investment into the region.

The UK was again the leading European recipient of US investment, recording 29 US-backed financial services projects in 2025 (up from 28 in 2024), representing 34% of all UK financial services FDI projects. France received 12 US-backed investment projects (representing 27% of all financial services projects), Switzerland received 11 US-backed projects (representing 50%), and Germany received 8 US-backed projects (representing 32%).

Future investment destinations: UK and Hong Kong favoured by global investors

Further to the FDI data, a three-year time horizon survey of global financial services investors shows that the UK is the most attractive European destination for FDI, followed by France. Outside of Europe’s borders, global investors ranked Hong Kong, followed by the US, then Singapore as the top destinations for future investment.

Looking at cities, Paris took top spot as the most attractive global city for financial service investment over the next three years, with Hong and New York ranked joint second, and London in fourth place.

Omar Ali, EY Global Financial Services Leader, comments: “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. From the major hubs of London and Paris to smaller cities bringing highly specialist capabilities, Europe’s finance ecosystem is a singular choice for many globally mobile, often US-led firms seeking innovation and growth.

“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.”

Employment growth climbed across Europe and rose sharply in France and the UK

Employment associated with financial services FDI projects increased across Europe by 15% in 2025 – to 9,762 jobs – after a dip in 2024. Publicly disclosed job figures showed employment from European financial services FDI was highest in France, rising 136% in 2025 (to 1349 jobs). In the UK, publicly disclosed jobs figures rose 82% (to 4,372 jobs).

In contrast, financial services FDI-related employment into Germany fell 45% yoy in 2025, and 38% yoy in Spain.

Notes to editors:

About the EY Attractiveness Report

The EY Attractiveness Surveys analyse the attractiveness of a particular region or country as an investment destination. The surveys are designed to help businesses make investment decisions and governments remove barriers to growth. A two-step methodology analyses both the reality and perception of FDI in the country or region.

The evaluation of the reality of FDI in the UK is based on the EY European Investment Monitor (EIM), the proprietary EY database.

We define the attractiveness of a location as a combination of image, investors’ confidence and the perception of a country’s or area’s ability to provide the most competitive benefits for FDI.

Field research assessing global investor sentiment was conducted by FT Longitude between 2 March and 3 April 2026 based on a representative panel of 100 international financial services decision-makers.