Hamburg is renowned as a city of trade, media, culture, and music, with a historical legacy as a financial hub boasting the oldest stock exchange (established in 1558), the oldest private bank (1590), the world's oldest insurance company (1676), and Germany's first and largest savings bank (1778). However, it's no secret that over the past 25 years, Germany's second largest city, once a significant financial player, has lost relevance within the industry.

Hamburg's connection with major financial institutions has dwindled. The city was once home to Commerzbank, which now operates primarily from Frankfurt. Regional banks like Vereinsbank, founded in the 19th century in Hamburg, merged with Westbank in 1974, later becoming part of HypoVereinsbank in 2005. Hamburg once had its own state-owned bank, which merged with the Schleswig-Holstein state bank in 2003, later becoming the world's largest ship financier HSH Nordbank. The bank's spectacular failure occurred during the global financial crisis. In the 1980s, Hamburg was a major hub for insurance companies in Germany. Today, only HanseMerkur, an independent insurer, remains headquartered in the city.

The ongoing debate about Warburg Bank's involvement in the Cum-ex scandal hasn't helped Hamburg's standing in the financial world. According to the Global Financial Centres Index (GFCI) by the British think tank Z/Yen Group, Hamburg has slipped six places, now ranking 49th out of 121 centers. In Germany's diverse financial landscape, Hamburg currently ranks lowest among other cities such as Frankfurt (14th), Berlin (23rd), Munich (26th), and Stuttgart (46th). Among these cities, only Munich experienced a recent decline as well, losing a total of eight positions.

Efforts to bolster the financial sector have been ongoing, led by organizations like Finanzplatz Hamburg e.V., which was established in 2007. Two years ago, on October 1, 2021, a masterplan for the financial industry covering 2021 to 2025 was introduced in collaboration with the Hamburg Senate and the Chamber of Commerce. In June of this year, the collaborative project "FCH Finance City Hamburg GmbH" was launched by these stakeholders. Their collective goal is to pool resources, promote innovative advancements in Hamburg's financial and real economy sectors, attract new businesses, and enhance the visibility of Hamburg's financial prowess on both national and international scales.

Advancements in these initiatives may not be immediately apparent, but they closely align with the economic well-being of the region. Hamburg's ability to leverage its centuries-old connection to Great Britain after Brexit, amid a potential reconciliation between the Kingdom and the EU, might play a crucial role in this context. Additionally, shorter land-based travel times to Northern Europe due to the emerging Fehmarn Belt crossing project suggest opportunities for Hamburg's real economy and financial sectors.

The financial hub of Hamburg has not fallen too far behind. Short distances between financial stakeholders, policymakers, and the Chamber of Commerce in the city-state are advantageous. There are strengths in the banking sector, an active stock exchange, and a favorable position in fintech and insurance brokerage. Hamburg's financial sector is not solely reliant on its historical legacy. The focus now is on implementing the masterplan. However, based on recent years' trends, expecting significant leaps in the competitive landscape might be unrealistic.