More than half expect business growth over the next 12 months, with strategic investment in AI, innovation and talent shaping the future of UK financial services, according to Lloyds Bank’s latest financial institutions sentiment survey.
UK financial institutions are entering a phase of renewed optimism, the survey showed, with 55% expecting their businesses to grow over the next 12 months, according to the findings. 60% of respondents believe the UK will retain its international financial hub status, whilst recognising that continued reform and investment will be key to sustaining this leadership position in an evolving global landscape.
83% of firms forecast business growth over the next five years, according to the survey based on responses from over 100 senior leaders across banks, insurers, asset and wealth managers and financial sponsors.
More than a third (37%) plan to increase capital expenditure over the coming year, targeting areas critical to future readiness. Digital transformation (47%), workforce development (46%) and AI applications (37%) top the list of priorities, the findings showed, reflecting a pivot toward innovation and operational efficiency.
REGISTER NOW: AI and the Future of Sustainable Investment
Nearly half (46%) of respondents said they plan to grow their presence in existing markets, while 42% are investing in emerging technologies such as AI and automation. Additionally, 37% are developing new products and services to capture evolving client needs and market opportunities.
58% of respondents expect growth in the UK economy and 56% anticipate expansion across the financial services sector over the next five years. 25% of firms predict further growth in financial services, while 58% expect to maintain their current trajectory – highlighting a stable and forward-looking sector.
Lisa Francis, head of institutional coverage at Lloyds, commented: “This year’s survey paints a clear picture of a sector that is resilient, ambitious and ready to invest. Despite headwinds, financial institutions are continuing to focus on what matters: delivering for clients, investing in people and embracing new technologies. At Lloyds, we’re seeing this momentum across our customers and investors. There is a tangible sense of long-term opportunity, with the UK’s financial sector continuing to be well positioned to support sustainable growth and deliver great benefits for our clients and for the wider economy.”
