Report shows increase in consultant spending among banks
A report from research and strategy firm Source Global Research has shown banks increased spending on consultants in 2016, with a growth of 8.4 per cent globally.
The Financial Services Consulting Market 2017 showed spending increased to £10.2 billion. Spending was up by 8.3 per cent in the global financial services industry, with the UK, US, and DACH being the biggest spenders.
The report also showed investment in digital technology was the highest in insurance and banking. 2016saw an increase in demand for consultants as a result of banks attempting to navigate regulations and stay ahead of challenger banks and newer fintech companies.
As consultant spending increased last year, figures from professional body Management Consulting Association also showed a growth of 4.76 per cent across the UK consultancy.
Fees increased by £10,000 per consultant, with the financial services industry being found to have accounted for the largest share of fees at 29 per cent.
Commenting on the rise in demand for consultants, Source Global Research Head Analyst Zoe Stumpf said: “One of the key drivers of demand for banks globally in 2016 was the continued emergence of non-traditional competitors, ranging from fintechs to challenger banks, to niche lenders.
“With these challengers working in a more agile manner, and with customer propositions much more suited to the digital age, they represent both a threat and an opportunity for banks.”