The survey shows that UK financial services continue to enjoy an improving outlook, with economic growth stimulating confidence, demand and volumes of business. Most sectors expect to increase their headcount, although banking respondents are considering staffing reductions.
Buoyed by the recovery, companies are boosting their plans for customer acquisition and domestic market share growth. But there are signs that competition will bring its own challenges. In particular, increasing concern about the threat from new entrants and companies outside financial services suggest that pricing and profitability could come under renewed pressure.
Improvements in distribution capabilities and data analytics are seen as particularly important to future growth.
The CBI/PwC Financial Services Survey is a quarterly trends report that discusses the health, perceptions and plans of the UK financial services industry.