The financial services industry is grappling with the severe stresses of a challenging economy, low interest rates, changing regulation, technological developments, and pressure on reducing pay, according to a report issued on Tuesday by professional services firm, PwC.
Tom Winterboer, PwC financial services leader for Southern Africa and Africa, says: “Leaders in the financial services sector are still facing some of the most challenging business conditions of their careers as profitable margins come under considerable pressure amidst the recent economic uncertainty and businesses struggle to come to terms with potentially disruptive changes in regulation and legislation.”
Africa’s CEOs are contending with very similar issues as their global counterparts, with the majority viewing over-regulation and a lack of skills as barriers to business growth, according to PwC’s 16th Annual Global CEO Survey. The survey is based on interviews with 349 CEOs in the financial services sector (149 from banking and capital markets in 49 countries; 92 from insurance in 39 countries; and 108 from asset management in 27 countries).
The findings form part of PwC’s newly launched ‘African Financial Services Journal 2013’, which addresses strategic, operational and technical issues that can potentially affect the sector’s future performance.
