The CBI and PwC have published a Financial Services Survey for December 2015. The survey of 100 financial services firms reported that the overall level of business has remained “above normal”. The survey made key findings within the following sub-sectors: banking, building societies, life insurance, general insurance, insurance brokers and investment management.
In the banking sector, the survey has found that banks have reported no change in optimism and a slight decline in business volumes and this is expected to remain the same for the next three months. It has been suggested that this is due to challenges faced by banks within the current operating environment where interest rates remain low and growth is difficult. The capital expenditure on IT has increased substantially and will continue to do so whilst banks introduce new products and services to retain their customers.
Optimism among building societies has remained stable, there has been an unexpected increase in business volumes as a result of strengthening business with private individuals and firms. The overall profitability in this sector is continuing to rise and is predicted to do so again in the following quarter.