Financial Services Leaders Remain Confident of Strong Performance ahead of General Election

Almost nine in 10 UK financial services organisations are confident of strong performance over the coming year.

Despite this optimism, economic pressures remain a concern, according to new research.

The research, commissioned by professional services and tech firm Davies and published by City AM, showed that around 89 per cent of businesses rate their performance in the last 12 months as “good” (50 per cent) or “very good” (39 per cent). Meanwhile, the survey, which questioned 501 senior financial services decision-makers, pointed to clear challenges going into the General Election on July 4, as 56 per cent claimed that economic pressures are among the biggest hurdles to contend with.

In fact, “economic turbulence” remains the number one concern across the industry, with 44 per cent of respondents citing this, followed by regulatory compliance (43 per cent) and cybersecurity threats (38 per cent) as being top of mind.

This comes as financial leaders consider their priorities and hopes for the sector in the run-up to next month's election, with a majority stating confidence in the nation maintaining its leading global financial centre status during the next three years. 

Pino Vallejo, chief executive of Consulting at Davies, said: “Given the challenging economic climate that has defined the past three years, it is positive to see that the UK’s financial services sector is full of confidence.

“Fuelled by strong performances over the past year, the research clearly highlights that most businesses are striving for more growth in the next 12 months. But there is also evidence of some caution, not least in navigating further economic challenges, with the General Election likely to prompt more turbulence over the summer months that businesses will have to navigate carefully.”

Responding to the findings, Wayne Johnson, CEO and co-founder of Encompass Corporation, commented: “Despite having to navigate a difficult economic backdrop in recent years, findings like these show there is optimism within the financial services industry as we enter what will be a crucial period. 

"These attitudes are buoyed by market confidence and the standout innovation that will be key to fuelling industry growth in the second half of 2024 and beyond. 

"With regulatory compliance pressures being noted as a particular consideration for business leaders, this is a reminder of the critical importance of utilising technology to not only respond but grow. Banks are tasked with adhering to stringent compliance standards to protect against financial crime and must harness the innovation at their disposal to implement robust, effective processes.

"Today, technology-driven solutions and processes exist, such as Corporate Digital Identity, to support banks in responding to evolving obligations while prioritising growth. With CDI, real-time customer profiles, generated on-demand from authoritative data sources, ensure a consistent approach to compliance every time. This is as well as maximising efficiency and significantly improving customer experience, helping to boost growth across business areas.

"Supporting innovation to thrive has been central to establishing the UK's financial services sector as a leading global hub, and we must capitalise on current confidence, and the solutions available, to reach full potential."