UK banking CEOs warn on cyber threats and job cuts

Posted at February 17, 2016 | Categories : News

UK banking CEOs are preparing for cyber-attacks, predicting a decline in staff numbers and planning tax changes to reflect tougher stakeholder expectations over banking transparency.

That’s according to PwC’s 19th Annual Global CEO Survey, which suggests that some of the expectations of UK banking CEOs differ markedly from CEOs elsewhere – almost four in 10 banking and capital markets leaders were particularly concerned about cyber threats (36%) – above UK CEOs in general (28%) and CEOs globally (21%).

The Global CEO Survey found that two-thirds of UK business leaders are planning to increase their organisation’s headcount in 2016, a higher proportion than their peers in any other European country and in most markets worldwide. However, only 43% of UK banking chiefs forecasted an increase in recruitment (vs 48% of global CEOs).

Simon Hunt, UK banking and capital markets leader at PwC, said: “These findings show that UK banking leaders are not only taking the threats stemming from economic pressures, regulation and reputational risk management seriously- but that newer risks, for example cyber, are very much on their radar. The views also reflect the significant cost pressures many of these institutions are currently feeling.”

Simon Hunt, UK banking and capital markets leader at PwC, added: “New technology developments such as Blockchain, Artificial Intelligence and a myriad of other Fintech initiatives should help banks foster a more informed, engaged relationship with customers but in the near term they are also likely to disrupt the industry.

“Those institutions that succeed will be the ones who successfully harness these developments to engage more effectively with their customers and reduce the costs of their platforms.”