Optimism continues to strengthen in financial services in the second quarter of 2015. Supported by strong domestic growth, firms forecast a rise in activity across commercial companies, financial institutions and private individuals. Overall capital investments plans have, however, been scaled back. Banks, in particular, are struggling to find the capacity to maintain their current levels of technology expenditure.
Official ONS data shows that productivity has slumped across financial services since the crisis. Our survey echoes that perception. Banks, building societies, life insurers and insurance brokers said an increase in “non-productive” activities such as regulatory compliance was the most important explanation for this trend.
The CBI/PwC Financial Services Survey is a quarterly trends report that discusses the health, perceptions and plans of the UK financial services industry.