Brexit, macroeconomy and cyber threats top challenges for asset management in 2017 - CBI/PwC

Despite these challenges, optimism has increased dramatically in the sector since September and expectations for growth are the strongest they’ve been in 18 months.

Employment numbers have improved since last quarter, with asset managers spending more on training and developing their people in response to ongoing regulatory scrutiny, including the FCA’s recent Market Study.

Engaging in strategic alliances continues to be a business priority for asset managers facing continued competition from new entrants and old players in the market. Looking to 2020, respondents say improvements in process automation and data analytics are the biggest potential Fintech offerings - suggesting a continued focus on back office operations and improved customer interaction.

Commenting on the survey findings, Mark Pugh, asset and wealth management leader at PwC, said: “It’s been quite a year for the UK’s asset management industry but our survey shows future optimism remaining strong, with business volumes expected to grow. Between the opportunities analytics will offer for improved customer engagement and ongoing regulatory scrutiny, the industry is sure to have a busy year ahead.

“As the UK begins its negotiations to leave the European Union, asset managers are aware their interaction with regulators will increase. It is vital the industry continues to work closely with both the government and the regulator to ensure all parties are aware of each other’s needs and expectations.”