Can digital technology boost the industry by £8.6bn?

When examining the impact of digital capabilities on their business, financial services companies said that they increased their revenues by 4.4% in the past year.
 
Looking at the next two years, financial services companies are optimistic about the potential of digital to continue to drive growth. While digital is expected to result in some job losses (approximately 24,000 jobs from financial services companies), 28% of financial services businesses expect no jobs at all to become obsolete from the increasing use of digital.

Overall, expected job losses are outweighed by the number of employees companies anticipate hiring as a direct result of digital investments, which aggregated across the sector are expected to total 43,000 new jobs.

When it comes to growth, Virgin predicts that if all financial services companies had access to the best digital capabilities available, the economy could be boosted by a further £8.6 billion per year.

The research also found that nearly a fifth of companies in the financial services sector are Digital Leaders – defined as those firms who are prioritising investment in a broad range of digital capabilities: technology infrastructure, digital workforce, digital information, digital strategy and leadership, open and collaborative partnerships and digital customer engagements.

When asked how digital is providing benefits to the business, survey respondents from the financial services sector cited factors such as remote collaboration, social media engagement with customers, analytics and the ability to reach overseas markets.
 
Peter Kelly, Managing Director, Virgin Media Business, said:

“Digital technologies are transforming the face of business and the wider UK economy, and it’s clear that financial services companies see the huge potential that digital has for growth. However, the incredible pace of change means there is no place to hide, or room to stand still. Any business with ambitions to grow through digital needs to invest in the right technology and skills, while the government and industry have to deliver the infrastructure and support to help them.”
 
John Cridland, CBI Director-General, said:

“The Virgin Media Business report reveals a huge digital opportunity for UK businesses. Both the public and private sectors have much to gain from harnessing the benefits of digital technology. The UK is the tech capital of Europe but digital advances never stop, so if we want it to stay ahead we need more young people studying computing to a higher level. Looking into the future, the proposed EU digital single market, if delivered well, would be great news for both business and consumers, reducing barriers to e-commerce across the continent.”