Banks still pay contractors 25% more

Daily rates in financial services for contract digital workers still compare "very" favourably to the rates set by digital agencies, despite 'take it or leave' pay cuts at a host of banks.

In its fourth quarter market reading, JM Group said that, even including the cuts, banks were still offering 20-25% more than agencies for the equivalent digital skills on a contract basis.

Within the banking sector, the recruitment group confirmed that contract rates have "slightly dropped" over the last six months due to banks "tightening up on their general costs."

But with demand for such development or user experience contractors still outstripping supply, the agencies remain reliant on the diversity of their work offerings to compete in the pay stakes.

"The lack of supply is a real problem for agencies that are finding it difficult to compete with the rates the banks are prepared to pay to entice candidates", JM's digital division added.

"In order to make their roles more appealing, [diversity of work] as well as other attractions, such as the more relaxed culture of their company" are being offered by the agencies.

Overall, the highest-paying contracts included Silverlight, Android and iPhone developers (each approx £500 a day); Client Services Account Director (£500), followed by .Net, ASP.Net and C# (£450).