London, UK — October 2025 — London is closing in on New York as the world’s leading financial center, according to the 38th Global Financial Centres Index (GFCI), but remains under pressure in the race to dominate global fintech innovation. The report, compiled by Z/Yen Group, placed New York in first position while London trailed by just a single point—its closest margin in years.
Despite this, the UK capital slipped from second to fifth in the fintech rankings, falling behind Asian hubs Hong Kong and Shenzhen, which are now driving much of the global momentum in financial technology.
“The risks posed by international competitors are very real,” warned Janine Hirt, CEO of Innovate Finance, the UK’s fintech industry body. “Countries around the world are aggressively competing to attract innovators, and for the first time in nearly a decade, the UK has dropped from second to third place in global fintech investment.”
London’s Financial Strength Remains Firm
While fintech faces headwinds, London retains its stronghold as Europe’s top financial hub, outpacing Frankfurt and Geneva by nearly 20 points. The capital’s banking, insurance, and asset management sectors continue to thrive amid increasing international scrutiny.
However, recent developments have raised concerns about the UK’s ability to retain key fintech players. Money transfer giant Wise opted to relocate its listing abroad, and Klarna, the Swedish “buy now, pay later” firm, chose Wall Street over London’s financial district. These decisions underscore challenges in maintaining fintech confidence post-Brexit despite government support initiatives.
Regulators Respond with Pro-Innovation Reforms
The Financial Conduct Authority (FCA) has pledged to make the UK more fintech-friendly through nearly 50 initiatives aimed at rebalancing risk, attracting investment, and simplifying market entry for startups.
“Supporting growth and competitiveness is a cornerstone of our strategy to keep London and the UK at the forefront of global finance,” said an FCA spokesperson. “We are unlocking innovation, encouraging exports, and making it easier for firms to establish and create jobs—while maintaining the standards that underpin our global reputation.”
Global Competition and Cybersecurity Threats
Chairman of Z/Yen and former Lord Mayor of London Michael Mainelli emphasized that the narrow gap between global centers highlights the “intensity of competition” across leading markets.
Meanwhile, cybersecurity is emerging as a key factor in determining financial leadership. A recent report by Howden Insurance Brokers revealed that cyberattacks in Europe have cost businesses over €300 billion in the past five years, with the UK topping the list for cyber insurance uptake. Experts warn that resilience against digital threats will be vital for maintaining market confidence.
“Cyber insurance is not just a safeguard—it’s a strategic enabler of resilience,” said Jean Bayon de la Tour, Head of Cyber International at Howden.
About the Global Financial Centres Index
The GFCI 38 is an authoritative benchmark assessing the competitiveness of 130 global financial centers. It evaluates factors such as business environment, infrastructure, human capital, and innovation to determine overall rankings.
Media Contact
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Phone: +44 (0)20 7562 9562
Website: www.zyen.com
Source
- Oman Observer: “London Closes In on New York but Fintech Race Is Tough” (omanobserver.om)
