Innovation, sustainability, trade: why London is the financial centre the world needs

With global challenges mounting, London must prioritise innovation, sustainability, and trade to safeguard its future as the world’s leading financial centre — for the benefit of all, writes Chris Hayward.

The financial services sector is at a crossroads. Emerging technologies are redefining how businesses and consumers interact, the drive toward net zero demands urgent action and global trade dynamics are shifting rapidly. 

The government’s Financial Services Growth and Competitiveness Strategy sets out an ambitious mission to create economic growth and build a more prosperous United Kingdom. London has the expertise, infrastructure, and ambition to deliver real change — but only if we act decisively.

Innovation is the lifeblood of financial services, and London has long been at its forefront. Digital verification alone could add £600m to the UK economy annually and unlock £4.8bn by 2030. 

At the City of London Corporation, we recognise that digital verification is no longer a luxury — it is essential to the future of finance. Financial services firms, businesses, and consumers are all hungry for seamless, secure ways to interact and transact. Without the right infrastructure in place, the UK risks falling behind. It’s not just about economic growth; these technologies protect consumers and businesses from fraud. 

This really matters. Fraud is the most commonly experienced crime, and the National Audit Office estimates that it cost the taxpayer between £55bn and £81bn in 2023-24. 

As the National lead for fraud, the City of London Police is central to the fight against economic crime. Initiatives like Cyber Griffin, which offers free services to help small businesses and individuals guard against cyber threats, demonstrate how innovation and collaboration can empower people to tackle emerging challenges.

The future also lies in AI, digital assets and open finance. The UK must lead this evolution, ensuring financial services are more efficient, faster, and customer focused.

The City Corporation is accelerating progress through partnerships with organisations like the Centre for Finance, Innovation and Technology and initiatives like the AI Innovation Challenge with Microsoft Together, we are building a financial ecosystem that strengthens trust, drives efficiencies, and keeps the UK at the cutting edge of fintech.

The net zero transition

With the world’s focus on addressing climate change, the financial sector is uniquely positioned to lead the transition to a low-carbon economy. London is already a global hub for green finance, from carbon markets to green bonds, but we must go further. A key step forward is the government’s partnership with the City Corporation to launch the Transition Finance Council, supporting businesses in aligning with net-zero goals. Achieving net zero is not just an environmental obligation; it’s an economic opportunity that can drive investment and innovation on an unprecedented scale.

To fully realise this potential, we need greater collaboration between government, regulators, and industry. High-integrity markets that attract global capital and finance the transition to a low-carbon economy will secure London’s position as the global centre for sustainable finance.

London’s success has always been rooted in its global outlook. As home to the UK’s largest exporters of financial services, we play a critical role in connecting markets and driving international trade. But we must do more than just maintain this position — we must ensure that UK financial services remain open, dynamic, and competitive in the face of shifting global dynamics.

Jurisdictions like Singapore and Ireland are actively courting investment with tailored incentives. London must respond by ensuring our visa and regulatory systems are fit for purpose and that we remain open to talent and inward investment. Initiatives like the Berne financial Services Agreement and the EU-UK Financial Services Regulatory Forum have laid the groundwork for closer international cooperation, but we must continue to push for reduced barriers with our largest trading partner.

The City Corporation supports the government’s growth priority. From championing digital innovation to advancing sustainable finance and advocating for trade-friendly policies, we are working alongside industry and government to ensure London remains the financial capital the world needs. But vision needs to translate more quickly into reality.

The Financial Services Growth and Competitiveness Strategy provides a roadmap for addressing these priorities, and the city stands ready to drive this strategy forward through bold action. 

Chris Hayward is Policy Chairman at the City of London Corporation