The latest Lloyds Financial Institutions Sentiment Survey reveals that 94 per cent of UK financial institutions expect their business to grow over the next 10 years, up from 81 per cent in 2025. This marks a significant rise in confidence, with seven in 10 firms now prioritising investment in new and emerging technologies—almost doubling from 41 per cent last year.
AI and machine learning lead the way
Nine in 10 respondents believe artificial intelligence and machine learning will have the biggest impact on UK financial services over the next five years. The survey also shows that 71 per cent of respondents think the UK will retain its position as a leading global financial services hub, up from 60 per cent last year.
Long-term growth outlook improves
Shorter-term growth expectations are also rising. Five-year growth outlooks increased to 92 per cent from 83 per cent, while 12-month expectations rose to 67 per cent from 54 per cent. Lisa Francis, Global Head of CIB Coverage at Lloyds, commented: "Despite global uncertainty, financial institutions are building confidence by harnessing technology to drive long-term growth. The sector is prioritising the areas that will define future competitiveness, from AI and emerging technology to data, talent and international expansion."
Technology moving from ambition to adoption
Francis added: "What is clear is that growth in the next decade will be shaped by the ability to adapt, invest and scale new capabilities. Advanced AI and data solutions are moving from ambition to adoption, with institutions increasingly looking at how these technologies can improve productivity, deepen client relationships and create new opportunities across markets."
UK's underlying strengths
The confidence reinforces the sector’s belief in the UK’s underlying strengths in capital markets, regulation and international connectivity, with specialist expertise in professional services infrastructure that continues to attract global financial activity. The tenth annual Lloyds Financial Institutions Sentiment Survey underscores a clear shift towards technology-driven growth, with AI emerging as a central part of this transformation.
