Barclays chief executive CS Venkatakrishnan argues the UK should capitalize on its $5.5tn in cross-border deposits to attract more foreign investment. The bank's in-house think-tank found this represents a $650bn advantage over US foreign deposits, making it the nation's 'most distinctive structural strength.' However, Venkatakrishnan warns market share is eroding.

His proposal centers on encouraging foreign companies to manage cash from the UK, an activity worth over $400bn in deposits. While Barclays would profit from increased fee-generating cash management services, the move could also provide cheaper funding for business lending and benefit professional services firms. The UK currently holds the lowest investment rate as a percentage of GDP among G7 nations.

Traditional attractions like the legal system and FX markets remain, but Hong Kong and Singapore now pose stronger competition with dedicated treasury strategies. Regulatory clarity on stablecoins and better promotion of UK strengths could help reposition the country as a 'dependable hub' for global capital. This matters given UK banks' limited international success—Barclays ranked sixth globally in Q1 fees, trailing major US rivals.

Rather than expanding overseas, Venkatakrishnan essentially argues for bringing foreign capital to British shores. This approach leverages existing advantages while addressing the UK's chronic underinvestment problem. The strategy reflects how financial institutions increasingly view domestic markets as competitive assets requiring active cultivation.