Expansion in the financial sector could be led by small to medium organisations, according to Richard Hoar, director at financial staffing specialist Goodman Masson.

Masson’s comments follow a biannual survey from BNP Paribas Real Estate, which reveals London’s banks and other financial services companies are set to expand with a total of about 11,500 extra employees over the next three years.

Hoar told Recruiter while there would be some growth driven by large organisations, there has been some expansion of small to medium-sized firms.

“Ever since 1986, there has been consolidation of larger financial conglomerates at the top end of the scale and then a slow build up of the mid-market firms. Some of the banks in the UK used to work in the UK mid-market and a lot of the mid-market business has disappeared from the large banks. You have had all these firms spring up — organisations that were not there 10 years ago who have filled this void.”

Mark Cameron, chief operating officer at Astbury Marsden, adds: “There remains a bright future for those seeking a career in the City. Increases in office take-up rates, FSA authorisations and rising business volumes suggest that City businesses are increasingly optimistic about their medium-term prospects.”

For more from Richard Hoar and Mark Cameron, see Recruiter’s banking sector analysis in the new magazine out Wednesday.