How has Brexit affected UK financial services?
Douch, M., Wu, Y. and Gao, B. 2025. How has Brexit affected UK financial services? Economics Observatory.
Douch, M., Wu, Y. and Gao, B. 2025. How has Brexit affected UK financial services? Economics Observatory.
| Title | How has Brexit affected UK financial services? |
|---|---|
| Authors | Douch, M., Wu, Y. and Gao, B. |
| Type | Project report |
| Abstract | Since the vote to leave the European Union (EU) in 2016, UK financial firms have changed their strategies. They have exported less but increased outward foreign direct investment (OFDI), especially in Europe. In a bid to stay competitive, 46% of greenfield projects and 69% of merger and acquisition (M&A) deals by UK financial firms went to the EU between 2016-2023. Greenfield projects involve establishing new operations abroad, while M&As involve buying or merging with foreign firms. Smaller and younger firms have led the way on greenfield projects, while larger firms have pursued acquisitions. This strategic shift reflects a significant structural adaptation: as UK exports gradually lose competitiveness in the EU, firms are increasingly investing within the bloc to maintain their market presence. |
| Keywords | OFDI |
| Year | 2025 |
| Publisher | Economics Observatory |
| Publication dates | |
| Published | Oct 2025 |
| Web address (URL) | https://www.economicsobservatory.com/how-has-brexit-affected-uk-financial-services |