Frankfurt surpasses Paris in financial hub ranking
The financial hub Frankfurt has surpassed Paris in the global ranking by the Z/Yen Group. As reported by the London-based consultancy, the City of the Euro climbed from the 17th place to the 14th place in the Global Financial Centres Index (GFCI), while Paris fell from the 14th to the 15th position.
Frankfurt, Germany's financial center, was among the 15 hubs that survey participants expect to gain increased significance. In the separate fintech ranking, Mainhattan climbed from the 23rd to the 16th place.
Hamburg and Munich experience decline
The performance of other German financial centers varied. Berlin ascended from the 26th to the 23rd place. However, Hamburg dropped from the 43rd to the 49th position, and Munich fell from 18th to 26th. Stuttgart rose from the 47th to the 46th rank. Thanks to Geneva (10th place), a continental European financial center is back in the top 10. "Switzerland has a real advantage in terms of regulatory environment and a low level of corruption," the survey analysis quotes a banker from Zurich.
Since September 2018, New York has maintained the top position, followed by London and Singapore. Both the British metropolis and the Southeast Asian city-state improved their ratings in scores, closing in on the home of Wall Street. Nonetheless, New York still leads London by 19 points.
London shows improvement in points
People along the Thames will likely be pleased that the negative publicity following the loss in the competition for the IPO of chip designer Arm has seemingly not affected the perception of survey participants. However, Singapore has moved within two points, and Hongkong is only three points away, securing the fourth position. Five of the top 10 centers are in the United States: New York, San Francisco, Los Angeles, Washington DC, and Chicago, reflecting the strength of the US economy.
The GFCI ranking is updated every six months, with the current edition being the 34th. Since the summer of 2016, the British think tank has been working with the China Development Institute from Shenzhen.
Strong confidence
"In international financial centers, confidence has remained strong," said Michael Mainelli, Chairman of Z/Yen. "Almost all the centers we observe have improved their ratings in GFCI 34." The ratings of the 121 centers, on average, improved by 3.5%.
The development of knowledge and skills is crucial for global trading centers, with new requirements emerging in areas such as artificial intelligence and ethics.
Business environment, human capital, and infrastructure matter the most
Continuous professional development along with a tertiary education sector is a key strategy to ensure that the financial industry workforce is future-ready.
The survey also questioned which factors are considered most important for competitiveness. This time, the business environment, human capital, and infrastructure were the most frequently mentioned. "Proximity and access to a diverse choice of customers and suppliers are essential determinants of a financial center's competitiveness," notes a manager from a fintech firm in Seoul. "Financial institutions thrive in environments where they can easily connect with a broad customer base, domestically and internationally."
