The announcement towards the end of last year that the Chancellor has accepted the Vickers Report recommendations didn’t come as much of a shock but what’s interesting is the fact that changes to the banking system may well create a raft of job opportunities within the financial service IT sector.
The recommendations include the separation of retail and investment banking arms to ensure stability – basically ensuring that the banking needs of smaller customers and consumers are handled by ring fenced parts of the bank . But from a systems perspective, this is a huge undertaking – it will require significant IT and operational investments which in turn is likely to create a raft of IT jobs as the banks strive to bring about a complex technology separation. However, we’re likely to be looking at a period of around four years before the boom happens as in reality, we will have to wait and see what timeline the banks will be willing to commit to.
The legislation will not be fully drafted until 2015 with implementation by 2019 and obviously there will be an extended planning period of analysis and design before the real implementation begins. Much could happen politically, economically and financially during this period but if the work does happen then the projects would be gigantic and will require huge amounts of human resource.
Laurie Boyall is Managing Director of McGregor Boyall the financial services recruitment specialist for *Change &Transformation*Compliance*Executive Recruitment*IT*Marketing*Product Control &Valuations*Risk