Our overseas clients have been avidly following the journey of Britain’s departure from the EU, especially the Americans and Canadians.
Much uncertainty for their businesses stems from the potential loss of so-called passporting rights whereby financial firms can sell their products and services across all EU member states after the UK exits the EU. Understandably, they have to prepare for the worst.
However, the latest opinion from the CEO of banking giant Deutsche Bank came as welcome relief to those despairing over the potential mass movement of financial jobs away from London. It also chimes with what Saunders 1865’s banking clients have been saying to us.
When Deutsche Bank CEO John Cryan was asked whether Deutsche’s London headcount was set to move to the continent he responded, “No, I don’t think so.”
The banking giant was widely reported to be planning a major move to Frankfurt, with some reports suggesting 4,000 staff could leave London due to Brexit. In fact, one economist claimed that half of London-based banking jobs could move to Frankfurt as it pulls ahead of other European rival cities.
Mr Cryan went on to say that he doesn’t believe Deutsche Bank will move out of London. However, he does believe that Frankfurt will benefit the most from Brexit and be the clear winner compared to other European centres.
London is by far the biggest banking centre in Europe and the headquarters of many of the largest financial institutions operating in the EU.
European countries have been battling to try and attract banking jobs that would leave the UK if it exits the single market. Some 15 financial heavyweights in London have indicated their intention to relocate to the city on the River Main, including the American companies Citigroup, J.P. Morgan and Goldman Sachs. However, the scale of the move is as of yet unknown as institutions await the outcome of the Brexit negotiations.
So what does this mean for businesses relocating? Brexit has certainly had an impact! An increasing number of businesses are choosing to relocate some positions out of Britain, particularly in the financial sector, which saw over 9000 banking jobs being transferred to mainland Europe following Brexit.
On the other hand, the weakening of the pound has also led to many companies relocating to London due to the resulting lowering of operating costs.
So whatever the outcome, Brexit is causing more international relocations and when businesses ask key talent to move abroad they better provide premier relocation support that makes the employees feel highly valued and well supported. No firm has more experience moving banking executives internationally than mine.
If you are a business relocating employees abroad, be sure to talk to Saunders 1865. We are the world’s only specialist provider of VIP level support to corporate clients that move people and families overseas. This has been our niche for 30 years.