Lloyds: Tech-Driven Growth Fuels UK Finance Confidence

UK financial services leaders are expressing a renewed confidence in their growth trajectory, with technology emerging as a primary driver, according to a major industry survey.

The 10th annual survey by Lloyds Bank – which supports 27 million retail and commercial finserv customers – polled more than 100 senior decision-makers across the UK’s largest financial services firms.

Conducted between March and April, the research highlights that 94% of respondents – comprising asset and wealth managers, insurers, financial sponsors and banks – expect business to grow over the next decade. This marks a significant rise from the 2025 survey, where only 81% predicted long-term growth.

Shorter-term outlooks have also improved year-on-year: five-year growth expectations have risen from 83% to 92%, while 12-month expectations climbed from 54% to 67%.

The tech investment surge

Lloyds notes that this confidence is backed by a “dramatic shift” towards emerging technologies, as financial institutions move away from the pilot phase and turn their attention to widespread deployment.

The role of technology in business expansion has accelerated rapidly. In 2024, just 25% of respondents noted that tech investment acted as a key growth lever. This figure rose to 41% in 2025 and has surged to 77% in 2026.

Lisa Francis, Global Head of CIB Coverage at Lloyds, says: “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.”

Shifting from ambition to adoption

AI is at the forefront of this digital transformation.

The survey shows that 93% of leaders believe AI and machine learning will have the biggest impact on UK financial services over the next five years. Plus, 91% expect their organisations to increase specific investment into AI over the next 12 months.

To support these initiatives, 64% of respondents plan to increase capital expenditure year-on-year. According to the bank, this funding will target operational resilience alongside long-term competitiveness and productivity.

Lisa continues: “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.”

Maintaining global leadership

The UK has long been a global hub for both technology and financial services, and sector leaders believe it will maintain its dominance.

Seven in 10 respondents expect the UK to retain its position as a global leader for financial services, up from 60% in 2024.

The results show that the sector’s belief in the region remains strong due to its robust capital markets, regulation and international connectivity.

This domestic confidence remains vital as the UK continues to provide specialist expertise and professional services infrastructure that foster domestic growth and attract international financial activity.