Over two-thirds (69%) of C-suite executives at leading financial institutions across the globe expect the economic environment to improve for their organization over the
next 12 months – up considerably from 53% last year. That is according to the latest Future of Finance Study by SIX – an annual survey that canvasses the opinions of senior executives across 291 financial institutions spanning Germany, Hong Kong, Singapore, Spain, Switzerland, the UK, and the US.
The findings come after benchmark equity indices rallied to record highs this year in regions including the US, UK, Germany, Singapore, Switzerland, while those in Hong Kong and Spain also rose to near all-time highs.
Singaporean and Swiss respondents are the most confident of their organizations’ position for growth, with 75% and 63% considering it strong, respectively. C-suite executives at US financial institutions report the lowest levels of confidence in their own organizations’ positions for growth, with only 43% seeing their position as strong – the only market to score less than 50% on this measure.
Practically all (99%) of executives agree that heightened market uncertainty will be a long-term feature of the global economy. However, in terms of how to view this uncertainty, respondents are far more divided. Overall, 58% see this as more of an opportunity, while 41% view it as more of a challenge.
In terms of the greatest challenges facing respondents, barriers to international trade and capital flows are the most cited, with 36% identifying these as their chief concern. The other two challenges most commonly flagged are reluctance among investors to take risks and geopolitical uncertainties. The latter has cropped up as one of executives’ main concerns in three of the last four Future of Finance studies.
“The ability to adapt to change defines successful organizations. While geopolitical conditions have evolved since our last study, respondents’ determination to succeed remains strong”, said Bjørn Sibbern, CEO SIX. “Managing market volatility requires reliable infrastructure and efficient flows of high-quality data. Working with trusted and innovative partners enables organizations to leverage uncertainty as a driver of growth, not merely a risk to manage.”
Further information is available in this year’s full Future of Finance study, comprised of four chapters covering growth, trading, regulations, and data.