23/07/2010
A recent report delivered some promising news for the financial services industry as it found that activity is growing at its fastest pace for three years.
Two-thirds of financial firms are expecting a rise in business volumes over the next three months, claims a CBI/PricewaterhouseCoopers survey. This is "the most positive expectation since December 1993," according to the report. The growth in activity is at the sector's highest rate since Northern Rock collapsed three years ago.
In fact, business increased across all the customer groups and grew at the fastest rate since June 2007 for industrial and commercial companies, financial institutions and private individuals.
The report also found that whilst business banking volumes contracted for a second successive quarter, a strong rebound in applications for commercial finance is predicted over the next quarter.
John Cridland, deputy director of CBI, commented: "The modest pick-up in activity in the financial services sector in the past three months fell short of expectations. But firms hope that activity will strengthen over the coming quarter and are now planning to expand their staff numbers... If this materialises, it will be the first increase since December 2007."
The number of firms saying that increasing their share of international markets and forming strategic alliances will form a key part of their growth strategy over the coming year is at its highest for a year.
The Scotsman claims that the 53% of firms planning to increase marketing budgets in the coming year, which is the highest for a decade, is a key indicator of renewed business confidence.
Laura Nineham