Optimistic outlook for financial services
The financial services industry is expecting healthy profit growth this year, according to the Investment and Financial Services Association’s (IFSA) annual survey.
The financial services industry is expecting healthy profit growth this year, according to the Investment and Financial Services Association’s (IFSA) annual survey.
The research found member companies’ profits have surged 20 per cent in the past year and are looking for slightly lower growth in the coming year of 10 per cent.
However, while the overall figures are positive, there are substantial pockets of pessimism in the industry. Just under one in four companies expect no growth or a fall in profits in the coming year.
Costs stemming from regulations and compliance have been highlighted as the key elements holding back profit growth.
Cross-selling has emerged as the key marketing issue in financial services, compared to last year where gaining market share through winning business from competitors was the key marketing issue.
IFSA chief executive Lynn Ralph says the survey shows Australian financial services groups have not embraced globalisation.
“Only a small number of the respondents plan to look offshore to increase revenues,” she says.
“However, the Government’s recently announced initiatives to make Australia a centre for global financial services, and the forthcoming reform of business tax, could play a role in changing expectations in this area.”
AUTHOR
Jason Spits
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