BREXIT, the economy and cyber threats are the top three concerns for UK asset managers in 2017, according to a new financial services survey involving a number of Scottish firms.
Optimism has increased dramatically in that particular sector since September with expectations for growth being the strongest they have been in 18 months. However, in the overall financial services sector optimism fell for a fourth consecutive quarter in the three months to December, making 2016 the gloomiest period for financial services firms since the 2008/09 crisis.
The report comes on the back of a turbulent week for banking with the announcements that the Clydesdale Bank is to close 40 Scottish branches with the loss of more than 200 jobs, Airdrie Savings Bank – the last independent savings bank in the UK – will close shedding 70 jobs, and HSBC is threatening to move 20 per cent of its London banking operations to Paris.
The latest CBI/PwC quarterly survey of 103 firms stated: “There was a widespread deterioration in sentiment across the banking sector, profits remained flat over the past three months, against a backdrop of stagnant business volumes and incomes. Banks don’t expect much improvement over the near-term, with business volumes and profits expected to fall over the next three months.”
Mark Pugh, asset and wealth management leader at PwC, said: “It’s been quite a year for the UK’s asset management industry but our survey shows future optimism remaining strong, with business volumes expected to grow.
“Between the opportunities analytics will offer for improved customer engagement and ongoing regulatory scrutiny, the industry is sure to have a busy year ahead.
“As the UK begins its negotiations to leave the European Union, asset managers are aware their interaction with regulators will increase.
He added: “It is vital the industry continues to work closely with both the government and the regulator to ensure all parties are aware of each other’s needs and expectations.”
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