PwC estimates a robust financial services sector could create an extra 265,000 jobs by 2020, including 47,500 in its own sector.
However, this will be dependent on sustainable and well-regulated growth.
In a report today titled 'Where Next? Assessing the current and future contribution of the UK financial services sector' PwC gave two scenarios.
Scenario 1 was a robust regulatory regime that created growth in the financial services sector at a substantial and sustainable rate. This would create an extra 265,000 jobs by 2020 including 47,500 in financial services. Some 132,800 of these jobs would be in London. It would also create GDP growth of two to three per cent.
Scenario 2 saw the financial services sector constrained by weaker economic conditions and a regulatory regime that did less to create growth. This would see a much smaller rise of only 12,000 jobs across all industries and GDP growth of 0.2 per cent.
However, PwC noted that better regulation did not necessarily mean more regulation.
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Kevin Burrowes, UK financial services leader at PwC, said: "Our analysis suggests that the links between the financial services sector and other sectors across the UK economy are strong. "This shows the important contribution the sector makes to the UK economy across all regions, but also highlights the profound effect that financial services regulation or changes in financial services performance can have on non-financial services business."
Nick Forrest, director and financial services economist at PwC, said: "The financial services sector has a critical role in the UK economy. In addition to providing credit, it creates demand in other sectors and helps improve the flow capital around the economy. A well-functioning financial services sector improves both capital efficiency and overall UK productivity."

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