Companies  

Blue-chips’ market share on the line: Duncan Lawrie

The managing director of Duncan Lawrie Private Bank said: “With rock bottom faith in high street banks and with many customers disgruntled at the service they are getting, we predict that people will start to look around.”

According to Mr Parden, independent players and private banks could be a “beneficiary” of the loss of market share experienced by the major banks.

His prediction followed a report last year, from YouGov, which showed that more than three quarters of UK customers who have more than £250,000 investable assets wanted a more personalised banking service.

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Mr Parden added: “For people to preserve their wealth and maximise their financial circumstances, they need to be conscious of the changes taking place and look into the best options available to them.

“Whether it means switching banks or seeking financial or investment advice, people need to be proactive around their finances in 2013.”

Other predictions for 2013:

A drop in life time allowance, which will mean companies need to look to find alternative methods of remunerating high earning employees.

MPs’ gold plated pensions will lose their lustre in 2013, as MPs face calls to bring their pensions in line with private and other public sector pensions.

In stock markets, he believes equity markets will continue to be volatile, although the backdrop of low interest rates and continued policy stimulus is constructive for equities, compared with bonds.

Mr Parden said payday and other alternative forms of lending will soar following continued increased borrowing in the past few years and banks will invest heavily in mobile banking in 2013, as big players such as Google leverage new technology to steal more of the market share.

Also, as child benefit starts to reduce this year, the responsibilities will be on consumers to opt out of child benefit payments if their income exceeds the threshold. However a large number of people are likely to unaware of the changes.