Financial services to increase technology investment, CBI/PwC report says

4 July 2011

Investment in technology, marketing and property in the financial services sector is expected to be higher than average in the year ahead, a new study has revealed.

A joint report by the Confederation of British Industry (CBI) and PricewaterhouseCoopers (PwC) showed that firms working in the industry said the rise was driven by a greater need for efficiency and speed.

Business volumes rose in the three months to June but at a slower speed than in the previous three quarters, the survey showed.

The number of staff employed within the sector also went up during the quarter - this is the first increase since September 2010 and occurred at the fastest rate since September 2007.

Andrew Gray, UK banking leader at PwC, said: "Regulatory pressure is still immense and the banks now expect to spend even more than anticipated on compliance over the next year. The fresh wave of cost reduction plans announced recently is a sure sign the banks are keenly aware of the need to improve profitability.

"While there is good news on jobs, with an increase over the quarter, banks remain focussed on costs. Recent announcements show banks will continue to make headcount reductions where required as they reshape their cost base.”

The survey featured more than 100 participants and was undertaken between 9 May and 24 June.

By Jim Ottewill

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