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Productivity decline continues to hit financial services sector in UK and Ireland
A report has revealed a continued decline in operational performance with financial services institutions in the UK and Ireland having fallen a further 7 % this quarter , amounting to 23 % less than peak-pandemic levels .
The OpsTracker : The Performance Tracker for Operations in Financial Services Q2 report analyses insights from over 30,000 employees to identify the trends that are impacting operations at financial institutions across the UK , Ireland , North America , Australia and New Zealand .
As a direct response to the current economic crisis , demand for banking services is significantly down . Most notably , mortgage approvals have slumped by 37 % since last year according to a Halifax report and demand for savings has reduced leaving some departments with unexpected time on their hands .
This is a critical factor behind the continued decline in operational productivity in the sector and highlights the urgent need for operations departments to drive agility and flexibility .
While focus and control were found to have improved slightly compared to Q4 2022 – as leaders sought to act to curb the decline in productivity – agility , effectiveness and efficiency were lower . With reduced demand for many services , financial services providers were less agile ( 95 % against 97 % last quarter and 99 % during the pandemic ) due to a lack of necessity to flex their resources . Effectiveness was down compared to the last quarter , revealing that service expectations are not being met . Efficiency was also found to have declined ( 88.8 % compared to 89.6 % last quarter ) indicating that as the volume of inbound work falls , operations leaders are struggling to use the capacity they have .
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