Subsectors we can supply in:
Our Financial Services practice prides itself on our broad network of CEOs and CFOs who have expertise within:
- Asset Management
- Retail Financial Services
- Banking & Markets
- Private Equity
- Risk Management
- Financial Tech
- Sovereign Wealth Funds
How we see the future for financial services
Brexit, regulatory change and disruptive technologies Brexit and passporting uncertainty have weighed heavily on this sectors desire to invest and that includes job creation where we have noticed a slowdown in hiring activity post referendum. There are many factors that have influenced this.
Financial service firms across the EMEA region will face significant challenges, with a demanding and ever-changing regulatory agenda, increased macro-policy uncertainty and other market developments all putting the industry under greater pressure.
However uncertain the future, one thing is quite clear – financial services firms will have to take strong and decisive action rather than try to sit tight and weather the storm.
We have already seen this in response to Brexit with the likes of Goldman Sachs, AIG, Morgan Stanley, Nomura and HSBC and many other banks making plans to restructure their banks and relocate roles to mainland Europe, some before the UK leaves the EU.
Sustainable business models built in an environment with an ever-changing regulatory environment will need to be robust and reflect post Brexit outcomes.
Let’s not ignore the impact that disruptive technologies and ‘big data’ will have on distribution channels and how they will influence consumer spending. The pace of technological innovation in the FS space will further outstrip many FS companies’ abilities to respond, so many household names will need to adapt by undertaking M&A to survive and tailoring their offerings.
We may also see the reverse where the ever-emboldened IT companies acquire the main FS company themselves.
Key questions many of our clients are asking
Will the ‘regulatory pendulum’ swing, and how far?
With the current economic outlook looking uncertain across the EU and with the Brexit shadow looking down on us, regulators may be inclined to ease off on the introduction of new rules and soften existing ones. Low interest rates have been challenging the profitability of many firms, and the breakdown of international regulatory frameworks may follow as a result.
How far will new technology change the financial sector?
Technology-driven change is something the industry will have to face in the coming years, and firms will need to understand new technologies if they are to harness the opportunities they provide and safeguard themselves against the risks they pose. There will be increased M&A activity as FS businesses look to upskill their internal resources.
How can we develop new sustainable business models?
With profitability being undermined by regulatory and economic pressures, firms will need to reshape their business models to become more competitive in this ever-evolving and increasingly demanding environment. They will still, however, need to maintain the right culture and practices within their organisations and a fine balance will need to be struck.