This blog focuses on the Financial Sector, exploring how the North’s long-standing strengths in banking, insurance, legal, and professional services provide a strong foundation for the region’s FinTech growth. It reveals how major employers, specialist service providers, and a skilled workforce are adapting to and enabling financial innovation.
The North of England’s Financial Sector
The financial services industry has been a cornerstone of the North of England’s economy for decades, with a rich heritage in banking, insurance, and professional services. The North of England FinTech Report 2025 highlights that this established base is not only vital to the regional economy in its own right but also serves as the fertile ground from which much of the region’s FinTech innovation grows.
Clusters in Greater Manchester, Leeds, Liverpool, Chester, and Newcastle host large-scale operations for national and international financial services brands. These include banking giants, insurance leaders, and global consultancies, many of which are now embedding digital transformation strategies that align closely with FinTech capabilities.
Writing in her foreword for the report, Janine Hirt, CEO of Innovate Finance, says:
“From established FinTech centres in Manchester and Leeds to emerging hubs in Newcastle, Liverpool, and elsewhere, the North is home to a diverse FinTech landscape. The findings confirm what many already recognise: the North is an engine for FinTech innovation. Its combination of financial services, academic excellence, and entrepreneurial spirit ensures it is an economic powerhouse in its own right.”
Banking dominates regional FS employment in the North, making up 40% of the workforce, alongside insurance and brokerage services (10%) and a particularly strong building society sector (10%). Thirteen of the UK’s 42 building societies are headquartered in the North, including three of the five largest – Leeds Building Society, Yorkshire Building Society, and Skipton Building Society.
The FS workforce is concentrated in the North West (50%), followed by Yorkshire and the Humber (40%) and the North East (10%). Across the Combined Authorities, Greater Manchester and West Yorkshire account for 60% of FS firms and half of the total FS employment. Specific subsector specialisms further illustrate the depth of regional expertise: financial leasing in Greater Manchester (90% of the North’s workforce in this area), fund management in Liverpool City Region (50%), open-ended investment in the North East (100%), and central banking in West Yorkshire (80%).
Many of the UK’s leading financial institutions have significantly expanded their presence in northern cities, recognising the strategic value of the region. This trend is visible across key FS hubs, where well known brands have a prominent presence:
- North East: Sage, Atom Bank, Newcastle Building Society, and Virgin Money
- Liverpool: Rathbones, Investec, Pershing (BNY Mellon), and The Very Group
- Manchester: Barclays, NatWest, AJ Bell, AXA, the Co-operative Bank, and BNY Mellon
- West Yorkshire: Lloyds Banking Group, First Direct, Aviva, Yorkshire Building Society, and national regulators including the Bank of England and the Financial Conduct Authority
The list of former brands is equally as impressive, and highlights the consolidation that has taken place over recent years. Bradford & Bingley, Eagle Star, General Accident, Girobank, Leeds Permanent Building Society, National & Provincial Building Society, Northern Rock, Royal Insurance, and Yorkshire Bank.
Every key region of the North has its own story to tell in respect of its Financial Services heritage, and these locations provide a compelling mix of skilled talent, cost-effective operations, and academic links, making them attractive destinations for both long-established institutions and emerging players.
For example:
- Liverpool’s financial history dates back to its 18th-century role as a global trading centre. Today, it stands as a prominent wealth management hub outside London, which is reflected in its WealthTech presence.
- Leeds has developed into a major financial centre, bolstered by the presence of national institutions including the Bank of England, the Financial Conduct Authority, and the National Wealth Fund, which underpin the city’s growing influence in UK finance. The recent decision by the Chancellor to unveil the ‘Leeds Reforms’ in the city has only served to strengthen this reputation.
- Greater Manchester supports the largest regional financial, professional, and business services sector outside the capital, and is home to the Information Commissioner’s Office. The city is also focusing sustainability innovation with the Bee Network – the UK’s first fully integrated, zero-emission public transport System – backed by £2.5 billion in government investment.
- In the North East, the availability of secure, cost-efficient data centres with access to green energy provides a critical infrastructure advantage for financial services firms. Recent Barclays Eagle Labs research confirms the North East as the UK’s fastest-growing region for new business formation, with a 24.4% increase and 5,230 new ventures launched.
“The North of England is a thriving hub for fintech innovation and a place where real opportunities exist. We can see that new entrants to the sector regard the regional clusters across the North as the perfect place to grow and take advantage of the skills and connectivity on offer. - Malcolm Buchanan, Regional Managing Director, Commercial, Mid-Market, NatWest
Key Facts and Figures
- Financial services is a major contributor to the North’s £344bn GVA.
- Significant clusters in Greater Manchester, Leeds, Liverpool, Chester, and Newcastle.
- Presence of global and national financial services brands alongside high-growth regional players.
- Increasing integration of FinTech into traditional FS services, especially in payments, lending, and wealth management.
- Competitive advantages include skilled workforce, established FS expertise, and cost efficiencies versus London.
The report notes that while London remains the UK’s primary financial hub, the North’s concentration of specialist skills, lower operational costs, and growing tech sector are creating competitive advantages for both incumbent firms and new market entrants.
“There is a relentless need for banks to invest in regulatory change, technology, and people. It makes for a very challenging environment within which to run a business.” — Mark Mullen, CEO, Atom Bank
“Making the case for investment in tech change is a challenge in all organisations, whether they are large corporates or startups. In terms of digital transformation, the growth potential in the UK dwarves most other economies, with the North of England representing a significant opportunity and being a very attractive market for an ambitious international firm like ours.” — John Birtwhistle, Chief Operating Officer, FCamara
Looking ahead
There is already a strong financial sector heritage across multiple regions of the North of England, and established FS organisations have been expanding their northern presence over recent years, attracted by numerous factors including the region’s positioning as a high quality and cost-effective financial services hub.
The North needs to continue to leverage its financial services heritage to attract investment, and to foster enhanced collaboration between established financial sector and the 400 FinTech firms in region, in addition to those across the UK and beyond.
Overall, the combination of deep-rooted financial expertise and leading-edge digital capability positions the North of England as a FinTech innovation centre of significant
potential. With strong foundations and a vibrant ecosystem, the North is well placed to influence the future growth of Financial Services across the UK.
You can read the full North of England FinTech Report 2025 here: https://www.whitecapconsulting.co.uk/press-release/new-report-finds-fintech-is-adding-5-billion-per-year-to-the-north-of-englands-economy/
Contributors
This collaborative project was conducted in partnership with Aviva, Bruntwood SciTech, FCamara, FinTech North, Innovate Finance, Liverpool City Region Combined Authority, MIDAS (Manchester’s Inward Investment Agency), Mastercard, NatWest Group, Northern Powerhouse Partnership, North East Combined Authority, PEXA UK, Pulsant, RSM, West Yorkshire Combined Authority.