Financial and business services companies are showing confidence about their long-term growth prospects in spite of the current economic climate, according to research from Santander Corporate Banking. Directors of companies with annual revenues of up to £20m are expecting, on average, to increase their turnover by 108% in the next five years.
The findings are an encouraging sign for the sector, with nearly as many directors (34%) highlighting the active pursuit of growth as an immediate short-term priority for their business as those who are focused on survival (35%). Furthermore, one in seven (15%) directors say their business has never been in better shape. However, while the sector is increasingly focusing on growth, many companies are still looking to cut costs, with 27% identifying this as an immediate priority.
Nationwide, smaller companies are most optimistic about their growth prospects with the average company with a turnover of less than £500,000 expecting to grow their business three-fold (by 202%) over the next five years.
However, larger companies also have ambitious expansion plans, with businesses turning over between £5m and £20m expecting to grow by an average of 86%.
Businesses in Scotland and Northern Ireland are most optimistic about their growth prospects over the next five years, expecting to grow by 194% on average. Businesses in the south east (136%) and South Wales and the southwest (123%) also show strong levels of optimism. However, businesses in the northwest, West Midlands and North Wales are less optimistic, expecting to grow by around 50% over the same period.
Despite the general optimism, financial and business service providers say the tough trading environment represents the biggest challenge, cited by over a third (38%) of directors as preventing them from growing.
The annual BNP Paribas Cash Management University kicked off on Thursday morning with treasury professionals congregating in Paris from across Europe.
APIs may be a solution to MT940 challenges, says Karen Fagan, treasury operation manager, for British television company, ITV.
Kicking off the first day of the Singapore Fintech Festival, issues with cryptocurrencies were addressed by MIT media labs director, Joi Ito, and panels of technology leaders discussed how they’re using data analytics.
Sibos 2017 day two highlights: Brexit and banking, and why ‘data is the new oil’ in financial services
How nation first politics can impact global financial organisations It’s clear that data and regulation are the two key topics that are ... read more