The survey shows that the industry’s confidence is reaching new heights. The prospect of economic recovery is lifting sentiment across all the major sectors of financial services. Despite a drop-off in volumes over the summer, there is broad agreement that business should expand during the autumn.
The arrival of ‘twin peaks’ has led to a clear increase in compliance costs, and regulation remains a serious barrier to growth. Even so, overall expenses are well managed and profitability is expected to strengthen. The outlook for employment also continues to improve as firms expand their capacity.
Financial companies continue to see IT investment as an enabler of organic growth. There is a growing desire to enhance the customer experience, particularly in the digital arena. Firms in several sectors are also investing more in product development.
The CBI/PwC Financial Services Survey is a quarterly trends report that discusses the health, perceptions and plans of the UK financial services industry.