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Why finance professionals are moving to Frankfurt in 2019

Posted on January 2019

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โ€‹A recent speech by Daniรจle Nouy, president of the Single Supervisory Mechanism of the European Central Bank (ECB), estimates at least 30 financial institutions have applied for new licenses to relocate to Frankfurt. Although the city may not quite compare to London, itโ€™s quickly becoming one of top financial hubs in Europe.

Financial marketing group Frankfurt Main Finance also predicts that more companies will shift their operations to Frankfurt. It could mean that financial institutions will look for top talent to relocate to this European city as it ramps up operations in the near future.

The thought of relocating to Frankfurt can feel daunting but doing so can be worth it.

Financial Institutions Shift Assets to Frankfurt

Financial marketing group Frankfurt Main Finance (FMF) estimates that financial institutions are poised to shift โ‚ฌ750- โ‚ฌ800 billion in assets to the city in addition to the โ‚ฌ3.5 trillion in current assets Frankfurt holds. Itโ€™s projected that the majority of the assets will be transferred within the first quarter of 2019.

30 of the 37 financial institutions whoโ€™ve applied to the ECB for licenses chose Frankfurt as their EU headquarter. There are also around six lenders with headquarters elsewhere in the EU moving operations to Frankfurt.

What this means is that the labour market will create demand for talent โ€” an estimated 10,000 additional jobs within eight years will be created in Frankfurt. It also means that salaries will be more competitive, making it almost as attractive as ones in the UK. Aaron Chan, Head of Selby Jennings in Germany, is optimistic about these changes.

โ€œAlthough many of the firms will be looking to find local talent, many will also be looking to attract talent to Frankfurt,โ€ he says. โ€œThis will be a big challenge for many individuals that are coming from places such as London and Paris, Europeโ€™s more established financial and cultural hubs. As a result of the highly competitive packages on offer, along with Frankfurtโ€™s lifestyle benefits, weโ€™re seeing an increase in interest for candidates to do this.โ€

Affordable Housing

Despite the rising costs of housing in Frankfurt, it remains one of the more affordable areas in Germany. Prices of semi- and detached homes typically pay โ‚ฌ4,700 per square metre compared to โ‚ฌ7,200 in Munich, while apartments in Paris have a market rate of โ‚ฌ10,000 per square meter. Rent went up to an average of โ‚ฌ13.40 per square metre.

In preparation for Brexit and to meet the demands of the current housing market, Frankfurt has begun constructing and converting buildings. For example, more than 3,000 new apartments have sprung up in Neiderrad, some of which were converted from vacant offices. Other satellite districts, such as Westhafen, are also increasing their housing options.

A Family-Friendly City

Many people โ€” including expats โ€” like that Germany prioritises work-life balance in company culture. Many labor laws are protective rights compared to the UK, including sox weeโ€™s worth of paid leave. Most people also leave work by 5:30 p.m.

Frankfurt also houses Europeโ€™s fourth and Germanyโ€™s largest airport, plus an elaborate air, rail and highway transport infrastructure. It also houses some of the largest pharmaceutical and manufacturing hubs, meaning trailing spouses can relocate and find jobs outside of the financial sector.

Combined with cultural events, lush forests and a moderate climate, Frankfurt is a great place to continue your career in the financial sector.

Get in touch with Selby Jennings to learn more about how we can streamline the recruitment process and secure positions according to your expertise.

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About Us

Selby Jennings is a leading specialist recruitment agency for banking and financial services. For more than 15 years, we have given clients and candidates peace of mind that the recruitment process is in expert hands. Our continual investment in best-in-class technologies and consultant training enables us to recruit with speed, precision and accuracy. Today, Selby Jennings provides contingency and retained search recruitment across 11 offices in 6 countries.ย Contact usย to find out how Selby Jennings can help you.

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