What do you mean by a Brexit exodus? Frankfurt’s problems are revealed in a new research, yet the city is expected to thrive.
PROJECT A recent analysis indicates that banking jobs in Frankfurt are projected to shrink this year, according to a think tank, confirming fears of a job flight from the City of London to the continent.
And, according to Leigh Evans, Vice Chairman of The CityUnited Project, London’s “unrivalled” standing as Europe’s financial capital, as well as its position as one of the world’s most important financial centers, is unaffected. According to a research published by Landesbank Hessen-Thüringen (Helaba), headcount at the city’s financial institutions will be at 62,200 by the end of 2023, down 3,300 from last autumn, or 5%, due to cost-cutting efforts.
“For the CityUnited Project, it’s not surprising to see a German lending report stating that banking jobs in Frankfurt’s financial hub are on the wane and are likely to reduce by 5%,” Mr Evans said.
“People will recall that one of the key headlines in 2016 – and ever since – was the expected exodus of banking and financial services employment on a biblical scale from the UK if the people decided to Leave.
“Hundreds of thousands of jobs were expected to be lost in London to Frankfurt and other EU27 cities.”
Mr Evans said that the numbers lost were actually a “trickle.”
“In April, a report by New Financial identified only 7,400 personnel movements or local hires as a result of the referendum,” he continued.
“In reality, the City’s and other UK financial centers’ news has been consistently positive.
“Just this month, Wall Street behemoth Goldman Sachs announced the opening of a new UK transaction bank to handle day-to-day treasury operations like payment processing and payroll.”
Meanwhile, Mr Evans noted that EU companies continued to seek to float on the London Stock Exchange.
He used the example of Klarna, a Swedish company that is the most valuable start-up in Europe, having raised £1 billion to far.
“Brexit will be excellent for the UK,” said CEO Sebastian Siemiatkowski recently.
“Everyone anticipated all the banks to go. I believe the reverse is true.”
“On top of that, the 2021 Global Fintech Rankings report was just released last week, revealing that London is by far the most active.”Brinkwire Summary News”.