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The UK is the world’s highest net exporter of financial services and London, next to New York, is the world’s financial capital as per Investopedia.
In the City of London, London’s financial district, commerce flourished and its ports drew merchants and entrepreneurs from many nations.
Some of those merchants went into banking and developed the sector. The Bank of England began as a private corporation started by merchants in 1694.
What Are Investment Banks?
Investment banks are major financial institutions that handle large transactions, raise funds, facilitate mergers and acquisitions (M&A), and provide other specialist services. For example: If a company wanted to sell bonds of £8 billion, it would approach an investment bank.
The Investment Banking market is anticipated to generate £6.19 billion in revenue by 2024. However, with an annual growth rate (CAGR) of 0.58% from 2024 to 2029, the total market value is projected to slightly decline to £5.74 billion by 2029.
How Do Investment Banks Work?
They offer intermediary services to large corporations, hedge funds, pension funds, and governments. They are different from retail banks as they provide services like asset management, sales & trading, M&A, and underwriting.
Investment banks assist with the initial public offering (IPO), the bank examines a business’s financial assets, offers advice post-IPO, and assists with drafting a prospectus.
How Do They Make Money?
Investment banks charge a percentage per transaction, collect interest on money raised, and charge a fixed rate per investment transaction.
Besides these, the following activities typically make money for an investment bank:
- Helping companies launch an initial IPO.
- Engaging in proprietary trading.
- Insuring bonds for businesses.
- Issuance of bonds to raise a company’s debt capital.
What are the most renowned London Investment Banks & their Significance?
Below we explore the top eleven banks with strong London ties and shine a light on their history in the city. We’ve ranked them from highest to lowest based on their net assets.
Disclaimer: All the information provided was correct at the time of publication but may be subject to change. The banks have been arranged based on their global customer base in decreasing order.
1. Santander UK
Headquarters: London, United Kingdom
Founded: 1988
Their London Story:
A subsidiary of the Spanish banking giant Banco Santander, Santander UK was established when the parent company acquired various former building societies in the UK. It has a strong retail banking presence in London and across the UK. They have over 800 branches and a variety of banking services. And that’s why it has become a familiar presence in the UK banking industry.
Net assets: £280 billion
Services offered:
- Commercial Banking Services
- Corporate Banking Services
- Retail Banking Services
- Mobile Banking
- Online Banking
Why Choose Santander UK?
- Santander’s customised investment strategies align with businesses’ financial goals and objectives.
- The bank has international expertise. This assists businesses in expanding globally and managing cross-border investments.
- Santander’s digital platforms offer businesses real-time access to investment portfolios and insights.
- A comprehensive suite of financial services supports businesses’ end-to-end financial needs.
- Santander’s network provides businesses with access to potential partners, clients, and investment opportunities.
- Santander’s Everyday Current Account comes with no fees, includes an arranged overdraft, and travel benefits, and allows seamless account switching in just seven days.
- The Santander Boosts program offers a complimentary rewards service with cashback, vouchers, prize draws, and personalised offers.
- Additionally, customers can use Santander cash machines abroad without incurring any fees, making it a convenient choice for international travellers.
Global Customer Base: 164 million customers
2. Standard Chartered
Headquarters: London, United Kingdom
Founded: 1969
Their London Story:
While Standard Chartered mainly operates in Asia, Africa, and the Middle East, its headquarters is in London. And even without offering retail banking services in the UK, it has been a significant player in the UK banking scene.
Net assets: £526 billion
Services offered:
- Corporate and Institutional Banking
- Wholesale Banking
- Financial Services in Africa, Asia, and the Middle East
- Trade Finance
- Cross-Border Transactions
Why Choose Standard Chartered?
- Expertise in emerging markets gives businesses access to high-growth investment opportunities.
- Seamless integration of trade and investment services supports cross-border business expansion.
- Standard Chartered’s ESG-focused investment solutions align with businesses’ sustainability goals.
- Advanced digital platforms enable businesses to manage investments and transactions efficiently.
- Standard Chartered’s global network assists multinational businesses in navigating diverse investment landscapes.
- Standard Chartered operates under the oversight of the Prudential Regulation Authority and the Financial Conduct Authority, ensuring high standards of security and compliance.
- Account holders can benefit from expert research, competitive pricing, and trade execution across multiple asset classes, along with financing, custody, clearing, and securities lending services.
- You can enjoy the convenience of free cash withdrawals from Standard Chartered ATMs worldwide, making international banking seamless and cost-effective.
Global Customer Base: 87 million customers
3. Barclays
Headquarters: London, United Kingdom
Founded: 1690
Their London Story:
Barclays plc is a British multinational bank headquartered in London, operating globally through its divisions, Barclays UK and Barclays International, supported by its service arm, Barclays Execution Services.
Established in 1690 as a goldsmith banking business in the City of London, it has grown to operate in over 40 countries with a workforce exceeding 80,000. As the fifth-largest bank in Europe by total assets, Barclays has demonstrated resilience through centuries of financial crises, global conflicts, and major economic transformations, from the Industrial Revolution to the technological era.
Net assets: £1,203 billion
Services offered:
- Wealth Management
- Corporate and Personal Banking
- Business Insurance
- Investment Banking
- Global Operations (40+ Countries)
Why Choose Barclays?
- Barclays’ strong investment banking division provides businesses with tailored strategies and insights.
- An extensive international network enables businesses to access diverse investment markets worldwide.
- Barclays’ innovation-driven approach offers businesses advanced digital tools for investment analysis.
- A wide range of financing options empowers businesses to fund growth and investment projects.
- Barclays’ advisory services guide businesses through complex investment decisions and strategic moves.
- Barclays is committed to fostering sustainability through environmentally responsible practices and impactful social initiatives.
- You can benefit from Barclays’ competitive savings account rates, tailored to align with current market trends.
Global Customer Base: 48 million customers
4. HSBC Holdings
Headquarters: London, United Kingdom
Founded: 1865
Their London Story:
HSBC originated from a Hong trading house in British Hong Kong and was established as a bank in 1865, with branches opening in Shanghai the same year. Formally incorporated in 1866, its parent entity, HSBC Holdings plc, was created in London in 1991, making the original Hong Kong-based bank its subsidiary. In 1992, HSBC expanded significantly by acquiring Midland Bank, thus becoming one of the largest UK banks. Today, HSBC operates in 62 countries and territories. HSBC reported a net profit of over 31 billion GBP in 2023.
Net assets: £1,936 billion
Services offered:
- Global Banking Services
- Global Private Banking
- Commercial Banking
- Retail Banking
- Cross-Border Lending
Why Choose HSBC Holdings?
- Extensive international presence gives businesses access to diverse markets and cross-border opportunities.
- HSBC’s strong trade finance capabilities assist businesses in navigating complex global trade transactions.
- Advanced risk management solutions help businesses mitigate financial uncertainties across regions.
- HSBC’s cross-border lending expertise supports businesses in expanding their operations across geographies.
- HSBC’s commitment to technological innovation ensures businesses access to cutting-edge financial solutions.
- HSBC upholds a strong capital base, showcasing its financial resilience and capacity to navigate market volatility.
- With a consistently competitive dividend yield, HSBC appeals to investors seeking reliable income.
- The bank has a proven strategic capital management track record through share buybacks and reinvestment in growth opportunities.
Global Customer Base: 41 million customers
5. Royal Bank of Scotland Group
Headquarters: Edinburgh, Scotland, United Kingdom
Founded: 1727
Their London Story:
The Royal Bank of Scotland plc, a key retail and commercial bank in Scotland and a subsidiary of NatWest Group operates around 700 branches, primarily in Scotland but also in major cities across England and Wales. Established in 1874, its first London branch marked its southward expansion during the British Empire’s growth.
Offering a comprehensive range of banking and insurance services to personal and business customers, RBS also pioneered “mobile branches” in 1946, with 19 still serving rural communities today alongside its traditional branches and digital banking platforms.
Net assets: £783 billion
Services offered:
- Personal and Business Banking
- Insurance Services
- Corporate Finance
- Issuance of Banknotes (Northern Ireland and Scotland)
- International Operations
Why Choose Royal Bank of Scotland Group?
- A deep understanding of regional markets assists businesses in capitalizing on local investment opportunities.
- RBS offers comprehensive financial solutions, integrating banking, insurance, and corporate finance services.
- The global network facilitates international transactions and cross-border investment initiatives.
- RBS’s commitment to innovation equips businesses with cutting-edge tools for efficient investment management.
- RBS’s long history and reputation in the industry build trust and reliability. This is a must for businesses seeking investment solutions.
- Community groups with a turnover under £100k can enjoy no account or transaction charges along with access to online/mobile banking and complimentary FreeAgent accounting software.
- Qualifying customers for exclusive premier banking services can benefit from a dedicated Premier Banking Manager, round-the-clock Premier support via phone and WebChat, and access to exclusive products and services—all at no extra cost.
- Account holders can experience peace of mind with advanced security measures, including card readers and biometric authentication, easily managed through the mobile app.
Global Customer Base: 40 million customers
6. Lloyds Banking Group
Headquarters: London, United Kingdom
Founded: 2009
Their London Story:
Lloyds Bank was founded in Birmingham but has a significant presence in London. Its headquarters is now in the capital. Formed from the merger of HBOS and Lloyds TSB, Lloyds Banking Group has been serving the UK since 2009. However, they have a rich history spanning over a century. The group is involved in retail, commercial banking, insurance, and consumer finance.
Net assets: £817 billion
Services offered:
- Retail Banking
- Commercial Banking
- Insurance Services
- Consumer Finance
- Wealth Management
Why Choose Lloyds Banking Group?
- Tailored expertise for various industries empowers businesses to make informed investment decisions.
- Lloyds offers a range of advisory services to guide businesses through strategic growth phases.
- The bank’s commitment to sustainable finance aligns with businesses seeking responsible investment options.
- Lloyds’ digital banking tools enhance efficiency and provide real-time insights for investment strategies.
- A collaborative approach fosters strong relationships. This enables Lloyds to understand and meet businesses’ unique needs.
- Lloyds Bank accounts offer perks like travel insurance, breakdown cover, mobile phone insurance, and preferential travel money rates, adding extra value to your banking experience.
- Lloyds Bank leverages customer data and insights to tailor services and meet individual financial needs effectively.
- With a robust capital position and disciplined risk management, Lloyds ensures stability and reliability through a high-quality portfolio and stringent underwriting standards.
Global Customer Base: 26 million customers
7. Starling Bank
Headquarters: London, UK
Founded: 2014
Their London Story:
Starling Bank is an app-based challenger bank founded in 2014 by Anne Boden. It’s headquartered in London and has been recognized for its innovative approach to banking.
Net assets: £453 million
Services offered:
- Personal Current Accounts
- Joint Accounts
- Business Accounts
- Euro Accounts
Why Choose Starling Bank?
- Starling Bank leverages advanced technology to provide seamless and convenient banking experiences for London businesses.
- As the first challenger bank to achieve consecutive years of profitability, Starling offers financial stability and growth opportunities.
- With a range of personal and business accounts, including Euro accounts, Starling Bank tailors its offerings to varied financial needs.
- Starling’s mobile app empowers London businesses with instant notifications, secure transactions, and real-time insights.
- Recognized as the Best British Bank for five consecutive years, Starling Bank’s excellence stands as a testament to its commitment to customer satisfaction.
- Starling Bank’s mobile app (iOS and Android) offers a suite of convenient features. These include real-time transaction notifications, virtual cards for budget management, secure payment links (Settle Up), detailed spending insights, and Spaces for automated savings.
- Starling Bank prioritizes security by employing robust authentication methods, including PIN codes, facial recognition, and fingerprint biometrics, to safeguard your funds.
- You can leverage Starling Bank’s mobile app to streamline check deposits. Simply capture images of your checks within the app, eliminating the need for branch visits.
Global Customer Base: 4.2 million customers
8. Close Brothers
Headquarters: London, United Kingdom
Founded: 1878
Their London Story:
Established in 1878, Close Brothers Group plc is a leading UK merchant banking group providing lending, deposit-taking, wealth management services, and securities trading. Its headquarters is in London. Close Brothers has been a longstanding player in the UK banking sector. They are known for their property, commercial, and retail divisions. In their centuries of operation, the bank has built a strong reputation for its financing and lending services.
Net assets: £8.11 billion
Services offered:
- Financing for Individuals
- Financing for Insurance Companies
- Financing for Retailers
- Financing for Car Dealers
- Property Financing
Why Choose Close Brothers?
- Close Brothers’ sector-focused approach tailors investment solutions to businesses’ specific industries.
- The bank’s personalised advisory fosters strong relationships, allowing for customised investment strategies.
- They have a specialisation in small and medium-sized enterprises. This ensures a deep understanding of their investment needs.
- Close Brothers’ flexible financing options accommodate businesses’ unique investment situations and growth plans.
- They have dedicated relationship managers. These relationship managers provide businesses with ongoing guidance and investment insights.
- Close Brothers is a highly-rated financial institution with strong credit ratings from Moody’s (A1) and Fitch (BBB+).
- Your eligible deposits are protected by the UK’s Financial Services Compensation Scheme up to £85,000.
- Close Brothers levies supreme importance on customer feedback to undertake strategic decisions.
Global Customer Base: Nearly 3 million customers
9. Metro Bank
Headquarters: London, United Kingdom
Founded: 2010
Their London Story:
Founded in 2010, Metro Bank was the first new high-street bank in the UK for over 150 years. It launched with a branch in Holborn, London, and has focused on building a physical branch network in London and the South East. The bank operates with a focus on providing a range of financial services to both personal and business customers.
Net assets: £21,647.0 million
Services offered:
- Credit cards
- Consumer banking
- Corporate banking
Why Choose Metro Bank?
- As the first new high street bank in the UK in decades, Metro Bank offers a fresh and innovative approach to banking services.
- Intending to establish 200 UK branches by 2020, Metro Bank provides convenient access to its services for customers.
- Metro Bank caters to various needs with its range of services, including credit cards, consumer banking, and corporate banking.
- The bank’s customer-centric approach aims to provide a personalized and responsive experience to its clients.
- Led by experienced individuals like Chairman Sir Michael Snyder and CEO Daniel Frumkin, Metro Bank is guided by a capable management team.
- They provide secure storage solutions with safe deposit boxes and offer the convenience of on-the-spot card printing.
- Metro Bank leverages modern communication channels to ensure prompt customer service, connecting with customers instantly.
- Opening a current account with Metro Bank is quick and easy. Simply provide a few details, a photo ID, and a selfie to complete the online process in minutes.
Global Customer Base: 2.6 million customers
10. Bank of Ireland
Headquarters: Dublin, Ireland
Founded: 1783
Their London Story:
While the Bank of Ireland is, by origin, an Irish bank, it has operations in the UK. The Bank of Ireland UK plc is a subsidiary that provides financial services in Great Britain. It has a presence in London, primarily catering to the business market.
Net assets: €151 billion
Services offered:
- Checking and deposit services
- Overdrafts and term loans
- Mortgages and international asset financing
- Leasing and instalment credit
- Debt financing and foreign exchange facilities
- Interest and exchange rate hedging instruments
Why Choose the Bank of Ireland?
- With a history tracing back to 1783, the Bank of Ireland offers a wealth of experience and a proven track record in the financial industry that businesses can trust.
- Bank of Ireland provides an extensive range of financial solutions, tailored to both individual and business requirements, ensuring that all aspects of your financial needs are covered under one roof.
- Operating not just in Ireland but also in Northern Ireland, Great Britain, and various international locations, Bank of Ireland’s expansive footprint means it can facilitate your business’s financial needs wherever you operate.
- As one of the distinguished Big Four Irish banks, the Bank of Ireland is known for its steadfastness and stability, offering businesses the peace of mind that comes with a reliable banking partner.
- Bank of Ireland’s diverse service portfolio spans from asset financing and mortgages to foreign exchange services, showcasing its versatile financial expertise that can support your business growth and innovation.
- The Bank of Ireland employs two-factor authentication for online banking, chip and PIN technology for card payments and real-time alerts to identify suspicious transactions.
- It has a dedicated fraud team to assist with blocking compromised accounts, recovering lost funds, and offering guidance on preventing future fraud attempts.
- The Bank of Ireland provides digital banking services through its 365 mobile app and website, ensuring customers can manage their finances conveniently and securely.
Global Customer Base: 1.9 million customers
11. Schroders
Headquarters: London, United Kingdom
Founded: 1804
Their London Story:
Founded in London in 1804, Schroders is a global asset and wealth management company. It’s one of the UK’s largest and oldest independent asset managers. Schroders has operations spread across different continents. These include Africa, Europe, Asia, and the Middle East. With that, the bank has earned its place among the UK’s financial powerhouses.
Net assets: £19 billion
Services offered:
- Wealth Management
- Retail Banking Services
- Commercial Banking Services
- Asset Management
- Investment Services
Why Choose Schroders?
- Schroders’ wealth management division offers businesses expert guidance for optimal investment decisions.
- Their global presence provides businesses access to diverse investment opportunities worldwide.
- Comprehensive research and insights empower businesses with data-driven investment strategies.
- Schroders’ customised investment solutions cater to businesses’ risk tolerance and financial goals.
- Schroders’ focus on long-term investment objectives aligns with businesses’ sustainable growth strategies.
- Schroders Personal Wealth (SPW) advisers are available to provide tailored financial advice at a time and place that suits your needs.
Customer Base: Not available
What Next?
Hopefully this investment banks in London overview will provide you with insights into London as a finance hub and its meaningful history. It may help you choose an investment bank as well because you’d want to only trust established banks with your money.
If you want us to add a suggestion here based on your experience, please get in touch with us!
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