Investors' growing confidence in Scotland should persuade more Scots to feel the same
Scotland’s economic potential is clear with the growth of marine renewables, among other sectors, creating a sense of real momentum
Last year, I wrote in The Scotsman calling for “a new approach between government, regulators and industry to herald in a new era of inclusive investment-led growth”. I was keen to bring awareness to the once-in-a-generation opportunity to build a new retail investment culture, both in Scotland and across the UK, as well as to celebrate the nation’s historic investment management industry.
Since then, however, we have learnt that embedding growth is easier said than done. Scotland has felt the sharp edge of the economic tailwinds caused by a global trade war, rising inflation and job losses in the oil and gas sector, leading to lowering of national growth forecasts. We need only look at the challenges Chancellor Rachel Reeves is facing on the eve of the autumn Budget to deliver growth for the UK to realise the hill we must climb.
That said, the last Budget delivered record spending for Scotland, with nearly £900 million channelled into energy, trade, and investment projects – clear proof that both Westminster and Holyrood see Scotland as central to the UK’s growth ambitions. We hope this sentiment is repeated tomorrow.
Growing confidence, real momentum
Investors are taking note too, particularly following the recently announced plans to sell £1.5 billion of Scottish ‘kilt’ bonds after being awarded the same credit rating as the UK. This year alone, our members have continued investing in Scotland, with projects including the refurbishment of Glenlee power station and developing Europe’s largest battery storage site in Blackhillock, demonstrating the confidence our industry has in the country’s economic potential.
Add to that Scotland’s leadership in marine renewables, this growing confidence is creating real momentum. And there’s a lot the investment industry – and Scotland’s would-be investors – can do to unlock further growth for both the nation and themselves.
Historically, Scotland’s investment management sector was defined by its operational support. At its peak, 18 per cent of Scottish investment management employees worked in fund operations and administration – a figure that far outstripped London’s 10 per cent.
But as the industry evolves, so too does Scotland’s role within it. Edinburgh remains the UK’s second-largest investment management centre, employing 6,750 people directly and a further 5,450 in auxiliary roles. Impressive numbers.
Financial technology and innovation
However, in 2024, a milestone was reached: for the first time, IT, tech and innovation roles accounted for 20 per cent of all Scottish investment management jobs, up from 18 per cent the previous year. Technology jobs have now overtaken traditional operations and fund administration, reflecting a broader rebalancing of skills and priorities across the sector. Scotland is rapidly positioning itself as a hub for financial technology and innovation, aligning with both the government’s growth agenda and the global embrace of artificial intelligence.
This transformation has not happened in isolation. Edinburgh and Glasgow rank 29th and 32nd globally in financial centre competitiveness, supported by the presence of over 220 fintech firms. World-class universities, such as the University of Edinburgh, also demonstrate the country’s growing reputation as an engine for innovation in financial services.
Without a doubt, Scotland’s investment management industry is pivoting towards the future.
Not for ‘someone like me’?
As Scotland’s asset management industry transforms, it’s time that the nation’s investment culture evolves alongside it. Despite Scotland’s strengths as a financial centre, a significant portion of the population remains hesitant about investing. Recent research shows that only 35 per cent of Scots agree with the statement “investing is for someone like me”, while 34 per cent actively disagree and 26 per cent remain unsure.
This ambivalence reflects barriers that limit broader participation in investment opportunities. But the ambivalence is not rooted in something intrinsic to Scotland or its people – despite what some commentators suggest with references to the so-called “Scottish cringe”. Instead, it reflects barriers that, encouragingly, are not insurmountable.
The most prominent obstacles are risk aversion and financial constraints. Forty-two per cent of Scots cite a reluctance to take risks as their main barrier to investing, while 38 per cent point to a lack of disposable income.
Yet, there are encouraging signs: among those who are unsure about investing, 64 per cent say they could be persuaded if they had more disposable income, the ability to start small, or access to simpler, more transparent investment options. This suggests that targeted interventions – such as financial education, user-friendly digital platforms and products designed for gradual entry – could make a real difference.
Improving financial literacy
A confidence gap also remains a critical challenge. Nearly half of Scots do not talk to anyone about investing, and less than a third feel confident about the state pension age or believe their pension will be sufficient for retirement. Only 28 per cent find the pensions system easy to understand.
Addressing the lack of confidence will require a concerted effort to build trust, improve financial literacy and foster open conversations about long-term savings and investment.
This is why we are excited to launch the nationwide multi-year retail investment campaign early in 2026 alongside government and a cross-section of financial services firms. As the campaign’s secretariat, the Investment Association wants investing to become an everyday reality for both Scotland and the wider UK.
As the autumn Budget approaches, now is the moment for policymakers, industry leaders and investors alike to work together – removing obstacles, building trust and empowering more Scots to invest in their future.
By embracing change and fostering a culture of inclusion and ambition, Scotland can ensure that its investment story is not just one of heritage, but of bold, sustainable growth for generations to come.
Chris Cummings is chief executive of the Investment Association
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