The Midlands Engine | Midlands Financial Centre of Excellence 1 The Midlands Engine a Financial Centre of Excellence 2 The Midlands Engine | Midlands Financial Centre of Excellence The Midlands Engine | Midlands Financial Centre of Excellence 3 Welcome to the Midlands 4 Driving Economic Growth 6 Key Company Locations 8 Growth Opportunites 9 Industry Strengths 10 Insurance 10 Banking 11 Business Processing and Financial Services 11 Fin Tech Opportunities 12 Talent Pool 13 University Expertise 16 Key Locations 25 Lifestyle 37 Global connections 41 4 The Midlands Engine | Midlands Financial Centre of Excellence Welcome to the Midlands The Midlands is one of the most dynamic areas in the UK. Located at the heart of a connected transport network, it has close proximity to London and access to 75% of the UK within 2 hours. Home to over 10 million people and around 430,0001 business enterprises, the region includes the cities of Birmingham and Nottingham alongside Coventry, Derby, Hereford, Leicester, Lincoln, Stoke-on- Trent, Wolverhampton and Worcester. Our local economy is worth more than £200 billion, generating nearly 13% of the UK’s Gross Value Added (GVA), and experiencing growth of 21% over the last five years. 1 Source: ONS 2018 The Midlands Engine | Midlands Financial Centre of Excellence 5 We’re home to over 100,000 businesses in The region has the fastest improving rail BPFS, employing 770,000. We export network in Europe and by 2033 will be £55bn worth of goods to 178 countries, the hub of the country’s new HS2 high growing at a rate in excess of the national speed rail network – expanding capacity rate. The Midlands is indeed an engine of and connecting to London in less than growth at the heart of the UK. 50 minutes. The home of Shakespeare, Robin Hood, The region’s 20 universities support JRR Tolkien and Sir Isaac Newton is today a world-class science and innovation base at the centre of plans for a new high making the region a global centre of speed rail network and an innovation hub excellence in areas such as advanced for advanced manufacturing, automotive, manufacturing, engineering, financial life sciences, digital technologies and services, low carbon and autonomous rail technologies. technologies, healthcare, life sciences and agri-food and drink. Birmingham Airport handles over 13 million passengers across 140 routes A high quality of life also attracts people to annually, while East Midlands Airport is live, work, study and invest here, with the the UK’s second largest cargo handler. In Midlands region blessed with five Areas of total, 45% of British rail freight and 33% Outstanding Natural Beauty, 60 historic of heavy road freight goes to, from or houses, two UNESCO World Heritage Sites through the Midlands. and a thriving culture of sport, music and the arts. 6 The Midlands Engine | Midlands Financial Centre of Excellence Driving Economic Growth The Midlands region is located at the very centre of the UK, anchored by some of the most historical and commercially important areas, including Birmingham, Coventry, Leicester, Nottingham and Wolverhampton. Within easy reach of London and major UK cities, the Midlands is home to World-class company headquarters, innovative entrepreneurs and high-quality universities with a global reach. The area benefits from one of the youngest populations in Europe and is a dynamic, The area benefits from one of the youngest thriving and business-focused region. populations in Europe and is dynamic, thriving and business-focused With a population representing1 15% of the UK total, and a highly-skilled talent pool, the Midlands has the size and scale to service the largest business functions. 1 Source: ONS, 2017 Mid-Year Population Estimates. The Midlands Engine | Midlands Financial Centre of Excellence 7 With some of the lowest prime rental costs in the UK, the Midlands offers companies excellent opportunities for head-office and operational solutions. The region offers substantial grade A office space at up to 60% lower cost1 than London, yet it is less than an hour from the capital. Whilst salaries are lower than 60% the capital, residential properties and Office space at up to 60% lifestyle are highly affordable, providing lower cost than London residents with the highest regional quality of life within the UK.2 The establishment of company headquarters and major landmark £200bn+ investments from high profile companies Midlands Annual such as Deutsche Bank, HSBC, Aviva, Gross Value Added3 Jaguar Land Rover Finance and Experian have been integral to the region’s unprecedented period of transformation, growth and development. A business environment in which companies can thrive, the Midlands has record levels of infrastructure investment, increasing international recognition, a rich talent pool and some 770,000 of the country’s leading universities. Employees in the Financial,Professional and Business Services Sector4 There has never been a better time to invest and grow in the Midlands. £28bn Finance and Business Services companies contribute £31 billion to the Midlands economy5 1 Source: Colliers Office Rental Maps, 2018 2 Source: Mercer study, March 2015. 3 Source: ONS, BRES 2017 4 Source: ONS, BRES 2017 5 Source: ONS, 2016 8 The Midlands Engine | Midlands Financial Centre of Excellence Key Company Locations The Midlands employs 940,000 people in companies highlights the distinct the Finance, Professional and Business opportunities that the region offers for services sector. An impressive presence of starting and growing a business.1 FTSE100 and major financial services Midlands – Key Employers Manchester Airport M1 Nottingham M6 11, 18, 20, 13, 24, 21, 26, 37, 28, 36, 40, 44, 55, East Midlands 53 Airport 56 M54 Leicester 5, 9, 22, Wolverhampton 27, 37 M42 M1 1, 2, 3, 4, 5, 6, Birmingham M46 7, 8, 10, 12, 16, 17, 19, 23, 25, Coventry M6 27, 29, 31, 32, M42 33, 34, 35, 36, 39, 41, 42, Northampton 43, 45, 46, M5 47, 48, 49, 50, 51, 52, 54, 9, 14, 58, 59, 60, 61 61 Milton Keynes M50 Heathrow, Gatwick, Stansted M40 Luton and Southend Airports Airport 10 44 A1(M) 1. AFH Financial 13. Charter Court 25. HSBC 37. Mattioli Woods 49. Santander Group Financial Services 26. Ikano Bank Financial 38. MHR 50. S&U plc 2. Al Rayan Bank 14. Coventry Building Services Society 39. Nationwide 51. Secure Trust Bank 3. Allianz 27. Investec 15. Defaqto 40. NOW Pensions 52. Standard Life 4. AM Trust Europe 28. KGJ Insurance 16. Deutsche Bank 41. Obillex 53. State Bank of India 5. Aon 29. Legal & General 17. Direct Line 42. Old Mutual 54. Store Financial 6. Axa Insurance 30. LexisNexis 18. Domestic & General 43. Paragon Group 55. TDX Group 7. Barclays 31. Lloyds Banking Group 19. Droplet 44. Pendragon Financial 56. The Nottingham 8. Beazley 32. Lombard Risk & Insurance Services Building Society 20. Experian Management 9. Berkeley Insurance 45. Phoenix Group 57. The Share Centre Group 21. First Response 33. Mansfield Building Finance Limited Society 46. Quilter Cheviot 58. Thecitysecret 10. BNP Paribas 22. Global Payments UK 34. Markel 47. Royal & Sun 59. Unity Trust Bank 11. Capital One 23. Handelsbanken 35. Marsh 48. Royal Bank of 60. Wesleyan 12. Certegy Card Scotland Assurance Services 24. Hastings Insurance 36. Masterlease 61. Zurich Insurance The Midlands Engine | Midlands Financial Centre of Excellence 9 Growth Opportunities Investment in the Financial, Business and related Professional services sector has grown as a result of the Midlands’ ability to meet high-quality locational requirements for headquarters, including operational functions that complement and strengthen an organisation’s business model. The Midlands’ value in this sector is based on its rich credentials across all functions and operations. The critical mass of talent and resources, unparalleled physical infrastructure and connectivity, including up to 50%1 lower grade B office rental costs than the capital, has enabled the region to emerge as a leading destination for Financial and Professional services. 5,155 Companies, carry out auxilliary The Midlands region provides a viable activities that support the solution for firms seeking to relocate Midlands’ Financial and significant areas of their business that Insurance services sectors2 currently reside in higher cost areas, as well as those wishing to consolidate departments spread across multiple locations. The professional ecosystem is constantly evolving, which represents an unprecedented opportunity for future growth. The cluster of small businesses in this sector is the backbone of the The professional ecosystem is Midlands offer, not only helping to create constantly evolving, which represents and support a perfect environment in an unprecedented opportunity which larger firms can operate, but also for future growth enabling countless opportunities for start-ups and SMEs in the region, creating opportunities for financial services growth. 1 Source: Colliers office rents map 2018 2 Source: ONS, Business Count 2018 10 The Midlands Engine | Midlands Financial Centre of Excellence Industry Strengths Two-thirds of people working in financial and related professional services across the UK do so outside of Greater London1 Insurance The quality and breadth of insurance skills in the Midlands can be credited to the region’s rich tapestry of specialist and niche operations. The region is home to major insurance operations such as Allianz, Aon, Mercer, Marsh and Zurich. With a history in major manufacturing, 10,000 the Midlands has a well-developed local Birmingham is one