Two thirds (67 per cent) of financial services leaders are more positive about the sector’s future growth under the new government, research from KPMG has revealed.
KPMG’s latest UK Financial Services Sentiment survey tracked sentiment among 150 leaders working across banking, insurance, asset, and wealth and private equity, finding the sector is now “more optimistic” about its future.
Subsequently, KPMG found that almost two thirds (61 per cent) of leaders feel more positive specifically about the global competitiveness of UK financial services under the new government.
When asked about this optimism, 23 per cent of respondents attributed it to the good relations the new government has with industry bodies and regulators, followed closely by 22 per cent saying the new government has a “clear plan” to grow financial services.
KPMG global and UK head of financial services, Karim Haji, said: “A change of government always marks a new chapter for the country and one of its most important sectors.
“Most financial services leaders are expecting a brighter future under the new government, buoyed by both the prospect of national change and continuity of financial services policy and reform.”
Haji added that, in the coming weeks and months, the sector will want to see “more details emerge” on the government’s strategy for financial services.
This will include greater partnership between it and the sector to collaborate on addressing challenges and a coordinated plan to strengthen the UK’s competitiveness as a global financial centre.
Innovation
Looking to the rest of Q3, most sector leaders said they were confident about business growth (87 per cent of respondents) and profitability (88 per cent) over the period.
They suggested this would be driven by increased demand for products and services (49 per cent), new technology (45 per cent), and plans to enter new markets (41 per cent).
Additionally, leaders called out specific areas of focus to ensure growth over the next five years, with almost a quarter (23 per cent) saying innovation to help solve environmental and socio-economic changes such as climate change and ageing populations was needed.
This was followed by 21 per cent saying more effort was required to make the UK more attractive to overseas talent through infrastructure investment, housing, and immigration changes.
Just 9 per cent of leaders feel that efforts to increase the volume of businesses listing on the London Stock Exchange would most support the sector over the next five years.
Haji added that, despite all the discussion, “it’s clear that innovation and attracting talent should be given equal billing if the sector’s positive growth expectations are to be realised in the long term”.
tom.dunstan@ft.com
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