Banks and Developments in the Personal Financial Services Market: Evidence from a Questionnaire Survey

Increasing deregulation in personal financial services in the UK raises important issues about the future of banks. This survey attempts to quantify the major trends in the personal financial services market, particularly from a bank perspective. A postal survey by the Nottingham Institute for Financial Studies of major financial institutions was earned out in early 1985. A response rate of 43.5 per cent was achieved from an initial mailing of 487 questionnaires. The results show a major diversification into banking and increased competition for the banks from current non‐banking institutions (mainly building societies). Strong moves into stockbroking and estate agency activities are expected, as is diversification by banks into closely related areas. Those banks which will be affected by internal growth and direct marketing will diversify activities. Diversification by building societies is perceived as the major source of increased competition in the personal financial services sector, and further entry by US banks is expected.