Manchester, often hailed as the UK’s third-largest city, has emerged as a prominent centre for financial services, showcasing a robust landscape conducive to both established financial giants and innovative fintech start-ups. Over the past two decades, Manchester’s economic growth has outpaced the national average, positioning it firmly as the largest financial hub outside of London.
The city’s status as an appealing birthplace for finance careers is underscored by significant investments from global financial institutions. Notable players such as BNY Mellon, Vanguard, JP Morgan, OakNorth Bank, and Starling Bank have established operations in the region, supported by over 200 start-ups and scale-ups enhancing the local financial ecosystem. BNY Mellon, which opened its Manchester office in 2005, now employs over 2,000 staff and has committed to the local community through apprenticeship programmes aimed at broadening career opportunities for the region’s workforce. Speaking to Mancunian Matters, a spokesperson for BNY Mellon remarked on their deep commitment to community engagement and talent development.
Vanguard, a key competitor, chose Manchester for its inaugural office outside London in 2023, citing the city’s skilled workforce and digital connectivity as pivotal factors for this decision. This move highlights Manchester’s capacity to meet the operational needs of forward-thinking financial firms while fostering a vibrant business landscape.
In addition to these developments, S&P Global has augmented its presence in Manchester to capitalise on local strengths in green finance and fintech, thereby enhancing its capacity for global market intelligence analysis. Meanwhile, companies like Adyen and Klarna are at the forefront of the digital banking revolution in the city, which significantly contributes over £1 billion to the regional economy.
Support from MIDAS, the Inward Investment Agency backed by the Greater Manchester Combined Authority and its Mayor, Andy Burnham, has been crucial in driving the expansion of the financial services sector. MIDAS provides valuable assistance to both new and established businesses, offering services that significantly mitigate the risks and costs associated with investing in the region. This strategic support has enticed many firms to Manchester, creating thousands of jobs and spurring local economic growth in recent years.
The appeal of Manchester extends beyond business; it is also a magnet for young talent seeking affordable housing, a balanced work-life environment, and a vibrant cultural scene. The city is projected to experience the second-fastest employment growth rate in the UK from 2024 to 2027, according to EY’s latest regional economic forecast, with job numbers expected to rise by 1.7% annually.
To sustain this economic growth, a proactive approach to education and skills development is crucial. The region works closely with schools, colleges, and businesses to cultivate a skilled workforce prepared for the demands of a rapidly evolving financial landscape. Manchester Metropolitan University and the University of Manchester offer specialised fintech programmes, graduating over 5,000 students annually in response to local employer needs.
Additionally, the Greater Manchester Local Skills Improvement Plan (LSIP) fosters collaboration among various stakeholders, including businesses and educational institutions, to enhance training and recruitment strategies. This initiative introduces sector-specific boot camps and programmes aimed at bridging skill gaps within finance and tech, equipping participants with both technical capabilities and essential soft skills vital for success in the financial sector.
With a blend of talent, technology, and opportunity, Manchester's financial services sector continues to burgeon, creating a fertile environment for both established firms and emerging start-ups. As the city adapts to global economic trends, it is solidifying its reputation as a leading finance hub, appealing to finance professionals looking to propel their careers within an innovative and supportive infrastructure.
Source: Noah Wire Services