A recent survey the Confederation of British Industry (CBI) reveals a rise in optimism among British financial services firms for the first time in four years in Q4 2019. Business optimism among the financial services sector grew for the first time in 12 quarters and at the fastest pace seen since June 2015.

Financial services companies in Britain also anticipate business volumes to expand in Q1 2020, the strongest expectations since March 2018. In more positive news, employment also registered a strong, above-average growth in Q4 2019 and is expected to continue improving into the next quarter as well.

However, Brexit uncertainties continue to weigh on this sector even as business optimism remains flat among certain sections of the industry, like banks, building societies and even declines in others like finance houses and life insurance. Investment plans remain uncertain while companies remain concerned about a possible shortage in labor once Britain leaves the EU.

More clarity is only expected to emerge after Brexit takes place on January 31 and the transition period negotiations progress well. The financial services industry awaits details on the level of access it will have to EU markets at the end of the transition period, now scheduled for December 31, 2020.