Financial services sector upbeat about growth prospects, study shows
Research from Lloyds Banking Group has shown that financial services leaders are feeling positive about the sector’s future, with the majority believing that the UK will continue to be Europe’s leading financial hub after Brexit.
The study also revealed that, despite optimism in the sector, Brexit is still seen as the biggest risk, with 55% saying that they are worried about the effect that it will have on growth.
While there has been an increase in the number of businesses that are considering moving their operations out of the UK since 2017, businesses still remain optimistic, with more than half of respondents saying that they do not have any plans to move.
Respondents were found to be feeling less positive about economic growth, with 70% expecting it to be weakened in comparison to all other G7 nations in 2018. However, more than 85% of the major businesses in the financial services sector believe that the UK will maintain its position as a top financial hub when the UK exits the EU.
Lloyds Bank Commercial Banking Managing Director and Head of Financial Institutions Robina Barker Bennet stated that it is no surprise that Brexit is the biggest upcoming risk but added that “despite the worries about growth prospects; the lack of clarity about the final deal; and the speculation about the future of the financial services industry, the sector is upbeat about its growth prospects and long-term future”.