Total foreign direct investment into Europe (FDI) slid 14% in the UK year on year for 2025, but FDI into financial services remained mostly strong across Europe, according to EY’s European Attractiveness survey for financial services.
Financial services direct investment reached its highest level since 2019, with projects up 21% across Europe and 16% in the UK (85 projects in total), making the UK the top destination for FDI into European financial services.
The US remains a major contributor to FDI, investing in 101 financial services investments across Europe, with the UK as the main recipient. Some 34% of UK financial services projects in 2025 were backed by the US, according to EY data.
Along with the expansion of existing projects, the number of new financial services projects rose by 18% across Europe. The UK received a 19% increase in new projects, whereas Germany and Switzerland saw a 14% and 5% decline in the number of new projects
Martina Keane, EY UK & 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.”
On top of this, a three-year survey of global financial services investors found the UK was the most attractive European destination for future FDI, with France just behind, according to EY. Beyond Europe, global investors also favoured Hong Kong, the US and Singapore as key destinations for future investment.
Omar Ali, EY global financial services leader, added: “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.”
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