Finance Focus Latest Issue

Unlike others, the financial industry has proven itself to be resilient during the pandemic. But while it is resilient, it is not immune to the impacts of what has been an absolutely devastating period for many businesses. Some smaller advisory firms and credit businesses have closed doors around the EMEA region, but big financial institutions are for the most part continuing to support their clients as best they can.

The big banks in Europe all posted decent results earlier in the year, but as we get through Q3, the impact of lockdown and the lack of spending that occurred during various lockdowns is starting to bite. Global, European, Middle Eastern and African growth predictions are all down and spending in commercial sectors has been bombed. You just have to look at tourism, air travel and entertainment businesses – devasted by lockdowns and cross-border issues.

But S&P is, currently, predicting a 5.9% rebound in global GDP in 2021 following a decline this year of 2.4%. And major banks, insurance and finance companies have technology as their ally. While all were undertaking digitisation strategies in some form previously, tech is now being stretched to its limits to help companies to work smarter. 

Because of this, there are many companies that are in fact seeing opportunity during these bleak times and investing internally to capture whatever chances are available. Another key focus for big financial businesses is collaboration.

Working together to solve problems is much quicker, easier and efficient, and even the biggest businesses are now seeing the necessity of partnerships to aid growth and development while Covid-19 still pummels our economies.