Wales has a buoyant and growing financial services sector. It is home to more than 1,800 companies employing a total of around 28,000 people, and contributes 5% to Welsh GDP
Banks and building societies dominate the sector in Wales, employing 62% of the workforce. Insurance and pension companies represent an important sub-sector, accounting for 21% of employment. The remainder work in operation and supervision enterprises. These include insurance brokers, independent financial advisors, fund managers, asset managers, stockbrokers, actuaries, loss adjustors; risk managers, exchanges, wealth managers.
Since the early 1990s many UK and global financial services companies have set up and expanded in Wales. Among them are: HBOS, Lloyds TSB, HSBC, Zurich, GMAC, GE and Legal & General. In addition home-grown companies such as Admiral Insurance, The Principality Building Society, Julian Hodge Bank and Thomas, Carroll have expanded dramatically over recent years (Admiral began trading in Cardiff with 57 staff in 1993. Today it has a million customers, turnover of £548m and 1,700 employees at sites in Cardiff and Swansea).
Many smaller innovative niche players are also demonstrating strong growth For example, Composite Legal Expenses' Cardiff operation increased turnover from £2.8m to £14m between 2001 and 2002. The breadth of services and functions is also increasing. Legal & General opened a small contact centre in Cardiff in 1996. Today the firm has its UK service operations centre here, along with its retail investment business, direct business and medical underwriting centre. With 2,000 employees, Cardiff is the company's largest operation in the UK.
The Welsh sector has also witnessed an increase in internet-based companies such as Moneysupermarket.com, InsureYourMotor.com, and Creditsafe.com.
