“The survey shows confidence reaching an all-time high, as the industry enjoys the fruits of economic recovery. Business and profitability are strengthening fast, and firms anticipate further growth. In response, they are increasing their levels of headcount and investment.
Increasing demand does not mean that incumbents will have things all their own way. The threat from new entrants is growing, and competition in the industry remains intense. Firms are also increasingly concerned about another type of competition – for talented staff.
The majority of those surveyed see the split of prudential and conduct regulation as a driver of higher costs. Even so, there are some signs that firms are becoming more adept at striking a balance between regulation and 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.