Our annual Midlands Financial Services dinner brings together many of the sector's most influential people in the region – including senior representatives from banks, building societies, insurers and asset managers.
It's a great opportunity to take the temperature of the financial services sector which is so important to the overall health of the Midlands economy.
The mood in the room for this year's event was one of growing optimism. With an improving economy and a gradual rise in interest rates likely to benefit many in the sector, it wasn't surprising that three-quarters of those who attended expect to see their business's performance improve in the coming months.
However, with more and more 'FinTech' and non-traditional financial services firms – such as Google and Apple – entering into retail financial services the vast majority of firms were expecting the marketplace to become more competitive. Consequently, and in light of continued regulatory change, our survey of those attending revealed that attracting and retaining staff was one of the biggest challenges facing the sector.
The survey also showed how many firms are investing in their operational teams. This reflects the fact that we are seeing more innovation around products and services, a particular focus on the digital channel and rising levels of business as the economy grows and disposable income levels improve.
Unsurprisingly, organisations are also making investments in their risk management functions as a result of a more strategic focus on growth plans, a wave of new regulatory requirements and a more interventionist regulatory environment.
Overall, the prospects for the Midland's Financial Service sector are healthy, which is encouraging news for the region's wider economy.
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