The private banking and wealth management industry contributes around £5.5 billion to the UK economy and is a major driver of jobs and investment in the country, a new report says.

The private banking and wealth management industry contributes around £5.5 billion ($8.9 billion) to the UK economy and is a major driver of jobs and investment in the country, a fact that is all too often overlooked, a new report says today.

More than 65,000 jobs are supported directly or indirectly by the PBWM sector, the report, by the British Bankers Association, says.

The BBA, the main bank lobby group and trade organisation, says it realises that there is a need for the work and issues surrounding private banking and wealth management to be recognised more clearly, which is a reason why it has undertaken this report. The work was done in conjunction with the Wealth Management Association.

“Private banking and wealth management is one of our country’s hidden success stories. It is an area in which Britain is a world leader and which creates a wealth of opportunities for people right across the UK,” Anthony Browne, BBA chief executive, said in the report.

Among the mass of data in the 54-page report is that firms and staff in the sector paid a total of £1.2 billion in taxes in 2013; the sector made a £3.2 billion gross value added contribution to UK GDP last year; this is larger, for example, than the market research sector and almost as big as television programming and broadcasting.

Among a survey of 250 high net worth investors (defined as being worth over £1 million each), London was voted the most attractive banking sector, ahead of New York, Zurich, Singapore and Hong Kong.

Non-UK passport holders invested on average half of their assets in the UK.

Asked on areas where firms must significantly improve their services and offerings, the highest percentage response from investors (43 per cent) referred to online services; some 39 per cent said advice on pensions and inheritance issues. Only 14 per cent said philanthropy.

Another issue flagged in the report related to continued cost pressures on the sector, both stemming from technology spending requirements and changing European Union regulations.