Finance sector remains resilient during lockdown


Over 95% of businesses in the financial and insurance sectors remain operational during COVID-19, one of the highest rates in industry sectors, although more than half have noted a downturn in demand.
According to data from the Australian Bureau of Statistics (ABS) on the status of firms during COVID-19 pandemic, financial and insurance services was one of four sectors to report these high levels.
However, nearly 60% of businesses in the financial and insurance sector had reported a downturn in the demand for their services although only 30% said they had been affected by the Government restrictions.
The other three sectors were professional, scientific and technical workers, transport, postal and warehousing and administrative and support services as having the most staff at work.
At the other end of the spectrum, less than half of businesses in the arts and recreation sector were currently operating.
Overall, two-thirds of Australian businesses had reported their cashflow or turnover had reduced as a result of COVID-19 while 10% had closed their business entirely.
Firms were adapting to the new circumstances by changes such as renegotiated rent or leases, brought forward investment plans or deferred loan payments.
To collect the data, the ABS surveyed 3,000 businesses between 30 March and 3 April.
Recommended for you
A financial advice firm has been penalised $11 million in the Federal Court for providing ‘cookie cutter advice’ to its clients and breaching conflicted remuneration rules.
Insignia Financial has experienced total quarterly net outflows of $1.8 billion as a result of client rebalancing, while its multi-asset flows halved from the prior quarter.
Prime Financial is looking to shed its “sleeping giant” reputation with larger M&A transactions going forward, having agreed to acquire research firm Lincoln Indicators.
An affiliate of Pinnacle Investment Management has expanded its reach with a London office as the fund manager seeks to grow its overseas distribution into the UK and Europe.