Industry Analysis & Industry Trends
The five years to 2012-13 have been some of the most volatile in the history of the banking industry. After a period of surging revenue and profit - driven by a credit boom, strong economy and unprecedented expansion in banking operations and products - the industry was brought to its knees by the financial crisis in late 2008. As global capital markets plunged and banks stopped lending to each other, massive asset write-downs wiped out bank equity, resulting in the collapse of Northern Rock and forcing the partial nationalisation of those left standing.
The industry has endured a torrid time since, with revenue declining in 2008-09, 2009-10 and 2010-11... purchase to read more
Industry Report - Industry Investment Chapter
While significant investment is required in technology infrastructure and branch and ATM networks, spending on property and equipment is dwarfed by labour costs. This is reflected by a capital to labour ratio of 1:8.85, which indicates that £8.85 is spent on labour for every pound of capital spending. Over the past decade there has been a shift in banks' capital spending, away from branches, as banks close them and opt to lease rather than own them, and towards development of more direct distribution channels using enhanced technology infrastructure. An example of this is the rise in popularity internet banking, which has seen banks place more emphasis on their internet platforms and less on physical branches... purchase to read more