Banking Separation To Create Job Opportunities
Written by Geoff Newman on 12/23/2011
IT professionals are likely to benefit from the separation of retail and investment banking operations that has been ordered by the Government on the back of the recently published Vickers report.
The report on the workings of the UK's banks and financial sector by Sir John Vickers, has recommended that retail banking should be separated from riskier investment activities, in order to protect it.
The dividing of the services, which was subsequently adopted as a key reform by Chancellor George Osborne, will help with the creation of many IT jobs - both permanent and for contractors - whose skills will be needed for the technical transition.
ComputerworldUK said that the move is likely to require enormous investment in the appropriate staff by the banks, but one analyst warned that it may be a number of years before the effects are really felt.
Laurie Boyall, from McGregor-Boyall, told the computer magazine, "It would not be surprising to see an extended planning period of analysis and design before industrial strength implementation begins."
Osborne said that the separation of the operations would cost the industry between £3.5 billion and £8 billion a year, but that it has been designed to prevent a repeat of the 2008 banking crisis.