Kigali, Wellington and São Paulo are trending this year, and not just because they’ve become destinations of choice for the Instagram generation.
Conversely, Amsterdam, Boston, and Miami are on the decline.
So what is the measure that some cities are rising while others are falling?
These six are listed in the Global Financial Centers Index published by consulting firm ZYen. Assess the future competitiveness and ranking of 121 global financial centers.
In the 35th annual report released earlier this year, Miami and Boston, cities traditionally known for real estate moguls and traditional wealth management, respectively, experienced sharp declines in the overall rankings.
Miami dropped 14 points toward the middle of the pack, and Boston fell completely outside the top 20, from 17th to 22nd in the 34th Index Report.
Conversely, cities not traditionally known as banking and financial centers, such as Reykjavík, Kigali, Hoichi Minh City, and São Paulo, have risen rapidly in the rankings, even though they are not in the top 20. It’s rising.
This is particularly relevant to fintech development and provision, which the report was able to quantify for the 116 cities within the index.
Global Banking Centers That Moved the Index Up:Global Banking Centers That Moved the Index Down:
Sao Paulo: up 21 places Miami: down 14 places Wellington: up 15 places Helsinki: down 12 places Reykjavik: up 14 places Guernsey: down 11 places Kigali: up 14 places Vienna: down 11 places Melbourne: up 11 places Oslo: 11th Ho Chi Minh City down: Los Angeles up 12 places: Down 2 places Toronto: Up 7 places Beijing: Down 2 places San Diego: Down 6 places Washington DC: Down 4 places Busan: Up 6 places Amsterdam: Down 5 places Source: Z/JPY
The GFCI is compiled using 145 instrumental factors. These quantitative measures are provided by third parties such as the World Bank, Economist Intelligence Unit, OECD, and the United Nations.
New York, London and Singapore are the holy trinity of financial and banking excellence, and while the usual suspects remain at the top, it is clear that there are challengers rising.
Indeed, asset managers have seen private clients and ultra-high-net-worth individuals begin to shift their banking and wealth management preferences to non-traditional jurisdictions.
As these emerging centers gain momentum both domestically and internationally, they will attract more financial services companies, increase regulatory oversight, and attract more investors.
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There are several reasons why new entrants are emerging.
Nigel Green, chief executive of international wealth advisory firm De Vere Group, said: “Places like Dubai and Singapore are increasingly attracting high-net-worth individuals by offering attractive benefits. ” he says.
“Dubai, which has no income or capital gains tax, and Singapore, known for its advanced financial planning options, are attracting attention from long-standing hubs such as the UK, Switzerland and Monaco.”
But the appeal of these new financial centers lies not only in their favorable tax regimes, but also in their stability and openness to global investment.
For many wealthy people, migration is determined by a variety of factors, including political stability, quality of life, and the protection and growth of wealth in a safe environment.
