What can we expect from the Financial Services market in 2020?

Now that it’s finally behind us, it’s fair to say that 2019 was a rollercoaster year for Financial Services! The political and economic climate in the UK caused a great deal of uncertainty, which had a significant impact on firms business planning and eagerness to invest in growth. However, whatever your political affiliations, 2020 looks set to be very different as we enter a period of growth. Here are some highlights:

 

Brexit

It’s been the dominating force in the UK and European geo-political climate for the last 3 years, causing several years of cautious strategic business planning. But regardless of your views on Brexit, in 2020 the brakes will come off as the uncertainty dissipates, allowing firms to focus on a real strategy for growth, rather than hypothetical scenarios. So expect to see all manner of firms driving forwards and taking advantage of a market and economy free from the constraints of uncertainty. 

 

Company Culture & Flexible Working takes over

In late 2019, IDEX conducted surveys of the over 5,000 Financial Services professionals on their attitudes to employment. The overriding message from this survey was that the expectations of the working environment are changing. No longer is money the driving factor to leave an employer or to accept a new offer. In fact, Company Culture was the main driver in leaving a role (46%) and in accepting a new one (40%). Working hours & flexible working environments was most valued by 27% with money coming in 3rd, with 26%. 

All this shows that firms looking to attract & retain the best can’t rely on “big money offers”, they need to develop enhanced Employee Benefits platforms that offer better work/life balance…which ultimately has been shown to create a more efficient and effective working environment, in turn increasing profitability. This change has already been adapted by many leading firms, but in 2020, we expect to see this filtering across the entire Financial Services landscape. 

 

Retirements and Acquisitions

2020 will see the continuation of a trend that began in mid/late 2019, as a large number of Owners / Principles begin to approach retirement age and plan for the future. As these individuals consider their options and look to stabilise their business, this has triggered a growing number of acquisitions. As such, salaries for Financial Planners has increased significantly as firms place higher value on retaining the book, so offer salaries to match. Compliance jobs are at their highest level with increasing regulation changes and the search for paraplanners continues and shows no sign of ending as we move into 2020. 

 

Digital Revolution

Technology in Financial Services is nothing new, but the impact of it seems to be growing in intensity, which we expect to reach a head in 2020. Many firms have the choice of embracing technology and the enhancements to efficiency and profitability that robo-advisors, big data and Artificial Intelligence brings, or risk being overtaken by smaller firms who are able to adapt faster, act more efficiently and ultimately grow their client bank better. These firms need to adapt in order to survive and thrive, investing in technology and transforming their workforces to drive productivity and innovation.

 

Innovation in Recruitment Planning

One of the single biggest impacts we expect to see in 2020, is the uptake of more innovative, intelligent and bespoke recruitment solutions to allow firms to plan for most of the above scenarios. The market has moved away from a traditional approach to recruitment in order to attract the best candidates from the passive market, rather than active jobseekers. These more innovative solutions, pioneered by IDEX, result in a better quality hire, in a shorter timeframe, for much the same overall cost. This is done by incorporating Video Technology, Microsites, Employee Value Propositions, Applicant Tracking Systems and Big Data analysis to provide genuine value in the recruitment process.

 

Make your next Financial Services move with IDEX

2020 is set to be a big year for the Financial Services market, with a job-rich, candidate short ecosystem that puts power in the hands of jobseekers. Find your next Financial Services job here or speak to us about how we can help your organisation fulfil your recruitment requirements. For more insights on what’s in store for the Financial Services industry this year, take a look at our 2020 UK Financial Services Salary Guide. Download your complimentary copy here.