US financial services giant State Street yesterday underlined its commitment to Edinburgh with the launch of a European "centre of excellence" for cash servicing which will boost its workforce at its Ferry Road site from 750 to 840.
The new European hub will handle cash servicing for the pension funds, life assurance companies and asset managers for which State Street provides investment administration and custody functions.
The Scottish Government said that economic development agency Scottish Enterprise and inward investment arm Scottish Development International had “worked with the company to support its growth plans in Edinburgh”.
However, a spokeswoman for the Scottish Government said these agencies had provided general support, as opposed to any specific financial incentives such as Regional Selective Assistance or training grants.
A spokeswoman for State Street said that recruitment for the new posts would begin within the next two weeks.
The decision by State Street is a minor fillip to the Edinburgh financial sector, at a time of large-scale job cuts by Royal Bank of Scotland and Lloyds Banking Group and staff-shedding by Standard Life and sector stablemate Aegon.
The spokeswoman for State Street said of the decision to develop a centre of excellence for European cash-servicing in Edinburgh: “It is done in different locations globally. What we are trying to do is bring that together and build a specific hub in Edinburgh.”
She highlighted recent business wins from UK clients, and expectations of further growth.
Scottish Finance Secretary John Swinney visited State Street’s Ferry Road site for the announcement yesterday of the US com-pany’s expansion in Edinburgh.
Mr Swinney said: “Scotland has established a global reputation for financial services excellence and I am delighted that State Street is expanding its Scottish operations and creating 90 new jobs.
“The company’s decision to increase its Scottish presence through the creation of a European centre of excellence is testament to (the) quality and skills of the local workforce.”
The Scottish Government calculates that the financial services industry employs about 95,000 people north of the Border, and accounts for about 8% of Scotland’s gross domestic product.
State Street chief operating officer Barry Muir said: “State Street has for many years recognised Edinburgh as a key financial centre and the high calibre talent pool that exists within the financial services industry across Scotland.
“State Street has recently won a number of large mandates with large UK clients, and Edinburgh will play a key role in servicing these. We are pleased to make this firm commitment to create a European centre of excellence here and we look forward to building on the strong business growth we continue to experience.”
Scottish Development International chief executive Anne MacColl said: “State Street’s decision to expand its operations and locate its prestigious centre of excellence in Edinburgh is a real stamp of approval for the financial services sector both in Edinburgh and across Scotland.
State Street operates in 26 countries and more than 100 markets, and has had a presence in Scotland since 1998. It offers investment management, research and trading and investment servicing. It has £14.1 trillion in assets under custody and administration, and £1.3 trillion in assets under management.
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