Recovery, stability, and growth are some keywords that have been thrown around at the start of 2023 regarding the financial situation for the remainder of the year. These were the focuses of the Autumn Budget announced in November 2022 and are likely to be the themes that help guide the finance industry throughout this year.
At Acuity Finance, we believe the signs are positive for businesses, consumers, and financial service providers alike, but that doesn’t mean there aren’t things to be wary of. Read on for our expert analysis of the financial markets in 2023 and what it could be mean for you!
Banking, investing, trading, shopping: all these processes are now far more commonly completed online rather than through traditional, in-person transactions. While this isn’t news to the industry, the providers of financial services are constantly adapting to new demands.
New regulations and compliance rules regarding data protection and the safe storage of information will continue to be key, but financial service providers should be striving to use customer data more effectively.
More stringent measures may also come into place for services or websites that require authentication, guaranteeing that consumers can verify their identity to help protect against fraud. With fraud in the spotlight and the methods of those seeking to commit it constantly evolving, it is important for financial firms to prepare against it.
The growing focus on digital interaction will also put a much larger weighting on customer efficiency, to the point where customers may demand faster deal and turnaround times.
Maximising the speed and simplicity of operations and dealings with customers is paramount in order to build a reliable and trusted client base. Plus, a faster service is more likely to get a financial service provider recommended to other potential clients in the future!
But remember that speed isn’t everything. In a market full of instability, it is important to analyse each situation as it comes and make sure you are selecting the best financial solution for your clients.
At Acuity, we are proud to operate with an owner-managed model, which allows us to offer a service that is reliable and tailor-made to each and every client.
Last year, the tail-end of lockdown measures, political instability, and the Russian invasion of Ukraine sent financial markets into turmoil. While the country at large hopes to grow and stabilise, there are still potential events that the financial industry needs to prepare for.
For one, interest rates are expected to rise throughout the year with the base rate reaching 4.0% on 2 February, before starting to reduce again in 2024. This could increase the interest rates on loans for those looking for property development finance solutions.
While the aim of raising interest rates is to slow the rate of inflation and ultimately avoid a recession, the UK has already entered a recession that is expected to last until the beginning of 2024. It is thought, though, that the effects should be milder than previous recessions.
Highstreet bank and popular mortgage lender, Halifax, expects the housing and property market to continue to shrink into 2023, with house prices falling by 2.3% in November and a further 1.5% in December 2022. They predict that over the course of 2023, UK house prices will fall by an estimated 8% as a result of the cost-of-living crisis.
Nationwide and Zoopla agree but are predicting a more modest 5% fall in house prices in 2023. However, additional instability because of geopolitical issues could destabilise the market further, which unsettles property developers, buyers, and sellers alike.
Whether you need a bridging loan for property development or an immediate landlord finance solution, Acuity is here to help.