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More than three-quarters (80%) of bankers believe challenger banks are an increased threat to their business, while almost one-third (30%) believe they will be the single most disruptive threat in 2019. The survey, commissioned by fintech provider Fraedom, found that in response the challenger bank threat, bankers expect their organisations to invest heavily in updating legacy systems (44%) and new technology (26%) in 2019.

“With challenger banks setting themselves apart by offering innovative technology platforms, commercial banks are now realising they must invest in key areas in order to counter this threat. This was also echoed by our survey which found other disruptive influences in 2019 to be digitalisation (36%) and consumerisation of technology (36%)” said Kyle Ferguson, CEO, Fraedom.

This comes as almost half (46%) of respondents perceive legacy systems to be the biggest barriers to the growth of commercial banks, while 32% cite it’s the pressure to save money.

With investing in new technology high on the agenda for commercial banks, the survey found that over half (53%) of respondents believe AI and Machine Learning will be the technologies to have the biggest impact on commercial banking in 2019.

“It is clear to see that challenger banks are a disruptive force within the sector. Through the use of innovative technology, these banks have plugged a gap left by established retail banks,  and are acting as a stark warning to banks within the commercial space which remains open to similar disruption,” added Ferguson. “If commercial banks are to compete, they must become more agile and adopt new technology platforms suited to changing needs of businesses, or risk being left behind.”

(Source: Fraedom)

With a rise in workplace-related stress, illnesses and mental health issues, half (50%) of working adults in the banking and financial services industries believe that businesses are not doing enough to support the physical and mental wellbeing of their employees, according to a new study.

Current treatments such as health check-ups, cognitive behavioural therapy and chiropractic treatment are provided by the NHS, through National Insurance contributions, but 70% of those surveyed by Westfield Health stated that the NHS does not have the budget to provide wellbeing services like these.

So is National Insurance becoming unfit for purpose? Employees in the banking and financial industries don’t seem to know, with 17% of employees knowing how much National Insurance they pay and 35% saying they do not know how much of the contribution goes where, be it the NHS, social security or their state pension.

With an ageing workforce and more hours spent in the office than ever, should the NHS’s frontline resources continue to be used for wellbeing services? The research found that over half (59%) of workers in the banking and financial services industries would like to see the Government do more to promote their physical and mental wellbeing. And the vast majority (74%) believe their employer is specifically not doing enough to help employees deal with work-related stress, anxiety and other mental health issues.

Similar to the recent rollout of the workplace pension opt-out, could a government-backed auto-enrolment scheme for wellbeing programmes - funded by employers and by a portion of employees’ National Insurance contributions – be one of the solutions to address the NHS’s long-term financial needs?

Certainly the appetite is there in the banking and financial services industries with employees particularly prone to sedentary behaviour, poor nutrition and sleep deprivation, impacting on their overall health and productivity. As a result, over two thirds (68%) of employees stated they’d use wellbeing services if their employer provided them.

The top things they would like to be offered are:

  1. Health check-ups (45%)
  2. Emotional wellness (42%)
  3. Exercise (35%)

David Capper, Commercial Director of Westfield Health, said: “The total number of UK working days lost to stress, anxiety and depression resulting from long working hours is 12.5million days. Therefore, it makes sense for employers to relieve some of the pressure through wellbeing initiatives. Not only would they be supporting our economy, they’ll make huge cost savings by looking after their staff’s health, with presenteeism now costing businesses up to three times more than absenteeism**.

“From sleep to nutrition and mental health to physical fitness, there are so many elements that contribute to your overall wellness, happiness and healthiness. In the banking and financial services industries, staff are particularly prone to being sedentary for long periods of time without a break at work, which puts them at serious risk of developing health problems such as heart problems, diabetes, cancer and weight gain.

“It’s more than free fruit in the office and discounted gym memberships. As business leaders, we need to create a culture where our people’s health and wellbeing is prioritised to drive confidence, capability, inspiration and ultimately prosperity.”

(Source: Westfield Health)

In a recently published report, S&P Global Ratings said it sees political risk and international investor sentiment toward the UK as the key risks facing UK banks in 2018 (see UK Banks: What's On The Cards For 2018). This isn't new--the UK banking system has operated against a constant backdrop of elevated political risk since 2014 and during that period, they have made good progress toward improving their balance sheets. Achieving stronger returns on equity has proved more elusive, however.

As the Brexit talks rumble on, we expect them and the related parliamentary processes to dominate the newswires. The UK's minority government increases political risk, especially as the UK is unused to operating with a minority government. Our sovereign rating on the UK has a negative outlook and our economists forecast relatively low GDP growth of 1.0% in 2018. Nevertheless, we anticipate that economic and industry trends will be stable for the UK banking sector.

We see some possibility of unsupported group credit profiles (UGCPs) being revised upward in 2018, if balance sheet strength further improves and earnings prospects accelerate, but it is hard to imagine wholesale sector upgrades, given the political backdrop. Unless the political and economic environment deteriorates more sharply than expected, or banking groups experience management mishaps, we consider the likelihood of lower UGCPs to be limited.

Uncertainties related to Brexit negotiations, specifically regarding transitional arrangements, are likely to weigh on business confidence, while inflation is set to outpace pay growth for most of 2018. We forecast that the economy will grow more slowly in 2018 than in 2017 as these factors weigh on business investment and private consumption. In our baseline forecast, we expect that economic growth will moderately accelerate in 2019 and 2020 while the UK transitions to its new relationship with the EU in 2021.

Only a rating committee may determine a rating action and this report does not constitute a rating action.

(Source: S&P Global)

Alarming new research from bed manufacturer Sealy UK, has revealed the nation’s bankers and finance professionals are turning up for work sleep deprived - impacting not only on their productivity and mood, but even their safety. It is now spearheading a major initiative, appealing to bosses to take this often-overlooked issue more seriously.

The awareness campaign is based on data from Sealy’s recent Worldwide Sleep Census, which questioned 5,000 people of a working age from across the UK, revealing a staggering 79% of bankers and finance professionals admitted they could function better at work if they slept better.

This places the sector as the second most sleep-deprived profession in the UK, coming below hospitality (86%), but above construction, retail and transport.

It appears this ongoing sleep deprivation is causing some serious issues in the working week; 65% of bankers regularly lose their temper or have been irritable to a colleague, 30% claim they suffer a lack of productivity, while 19% say they’re often late into work or have time off as a result.

A shocking 1-in-25 even admitted falling asleep whilst at work.

However, perhaps most worrying is the 11% of bankers who have had a recent accident at work – such as a trip or a slip, due to feeling tired.

A call for bosses to put sleep at the top of their agenda

Despite the popularity of ‘wellness’ perks at companies across the UK, from gym memberships to medical insurance and even free healthy snacks, sleep remains something that is often overlooked by employers, and not treated as an important issue. This happens despite the potentially serious impact of staff not achieving adequate rest, as demonstrated in the study.

Neil Robinson, an expert on sleep at Sealy, comments: "Lack of sleep – and the subsequent fallout the next day – can be caused by a wide range of legitimate medical conditions, from stress, to mental health problems or respiratory disease. Even at the less severe end of the spectrum, there’s usually an underlying health issue causing sleeplessness. However, it’s often treated as an incidental issue by bosses, with a ‘pull yourself together’ attitude. This is not helpful for employees, especially when there are some potentially severe consequences of turning up exhausted.

“There are of course occasions when staff are tired as a result of staying up too late or burning the candle at both ends. However, this campaign is about helping bosses make that distinction, as well as encouraging a common-sense approach to effectively managing sleep in the workplace”.

To address this important issue, Sealy is working with a leading HR expert, Kate Russell, of Russell HR Consulting – a firm advising companies of all sizes across the UK when it comes to best-practice HR policy – to produce a ‘common sense’ guide for bosses to better manage sleep deprivation of staff.

(Source: Sealy)

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