1. CISI – Financial Products, Markets & Services
Topic – Introduction to financial services
The importance of financial services to the UK

2. Tales from the Credit Crunch
Impact on individuals
Loss of jobs
Change in spending habits - cutting back or going without – more likely to save money than spend it
Homes repossessed – unable to keep up with mortgage repayments
Increase in stress, pressure and worry – impact on family life
Difficult to borrow money – lending dried up
Bankruptcy
Impact on businesses
Reduced demand – redundancies and cut backs had to be made
Debtors – delays in being paid or not paid at all
Creditors – businesses unable to meet their obligations
Difficult to borrow money – cannot expand or continue operating
Reduced business confidence
Positives
New opportunities emerged but not always positive
Greater emphasis on managing spending and debt
New regulations

3. The importance of financial services to the UK economy
Gross Domestic
Product (GDP)
The importance of financial services to the UK economy
Employment
Key export
Tax contributions

4. Gross Domestic Product (GDP)
The importance of financial services to the UK Economy
Gross Domestic Product (GDP)
Financial services accounts for nearly 10% of UK GDP
Compared with other developed economies, financial services share of GDP in UK has grown rather than slowed down
Employs over 1 million people in the UK with another 1 million in professional services (7% of total UK employment)
416,800 people employed in banking
308,700 people employed in insurance
41,600 people in employed in fund management
Employment

5. Key export Tax contributions
The importance of financial services to the UK Economy
Key export
UK surplus in financial services is larger than the combined surplus of all other net exporting industries in the UK
The UK is the world’s leading exporter of financial services.
Tax contributions
2014/15 financial services total tax take in the UK - £66 billion
Represents 11% of total UK government receipts

6. Regional divisions – UK employment in financial and professional services
Scotland
156,700
North East
49,000
233,000
North West
Yorkshire
136,500
Northern Ireland
32,200
East Midlands
81,700
West Midlands
127,000
East England
157,500
Wales
54,300
London
714,000
South West
162,100
South East
272,600

7. UK average gross salary for full-time employees = £27,200
Regional divisions – UK employment in financial and professional services
Area of employment
Average UK graduate starting salary in 2016
Graduate
£29,000
Investment Banking
£40,000
Law
£39,000
Banking and finance
£33,000
Accounting
£30,000
IT and Telecommunications
£29,500
Media
£27,000
Retail
£25,000
Armed Forces
£25,000
Public Sector
£22,400
Newly qualified teacher (England and Wales)
£22,023 to £27,543
UK average gross salary for full-time employees = £27,200
Source: The Graduate Market in 2014