Lloyds: UK Financial Service Leaders AI Confidence Grows

Financial services leaders in the UK could be entering a period of technology-led expansion.

Lloyds Bank surveyed more than 100 senior decision-makers at the country's largest firms and found expectations for growth at their highest level in years.

The bank ran its tenth annual survey between April and March of this year.

Lloyds Bank supports 27 million customers across retail and commercial financial services.

Technology investment gains momentum

According to the survey, 94% of respondents expect business to grow over the next decade.

The respondents include asset and wealth managers, insurers, financial sponsors and banks.

This figure represents an increase from the 2025 survey where only 81% expected their business would grow.

Shorter-term outlooks have also improved with five-year expectations rising from 83% to 92% and 12-month growth expectations increasing from 54% to 67%.

The confidence could be linked to what Lloyds describes as a change in how firms approach emerging technologies.

Attention has moved away from testing stages towards deployment.

In 2024, 25% of respondents noted that investment was leading a growth lever.

That number rose to 41% in 2025 and reached 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."

According to the survey, 93% of respondents believe AI and machine learning will have the biggest impact on financial services in the UK over the next five years.

The survey indicates 91% of leaders expect their organisation will increase investment into AI in the next 12 months.

Spending plans reflect operational focus

Capital expenditure year on year is planned to increase according to 64% of respondents.

Lloyds Bank notes this reflects considerations around operational resilience in addition to 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."

The spending increases come as firms look to balance immediate operational needs with longer-term strategic positioning. The survey data suggests firms are allocating resources across multiple technology areas.

Lloyds Banking Group is headquartered in the UK. The firm conducted the survey to gauge sentiment across the financial services sector.

UK maintains competitive positioning

Seven in 10 respondents expect the UK to retain its position as a leader for financial services. This represents an increase from 60% in 2024.

The sector's view that the UK remains strong for capital markets appears consistent through the results. Regulation and international connectivity also feature as areas where respondents believe the UK maintains advantages.

The UK provides specialist expertise in infrastructure relating to professional services. This could foster growth in domestic territory while attracting international financial activity.

The hub continues to offer the professional services infrastructure that financial institutions require. According to the survey responses, this infrastructure remains a factor in how firms view the UK's competitive position.