Lloyds Bank has launched its annual “Financial Institutions Sentiment Survey,” capturing the insights on investment and growth expectations of over 100 UK senior decision-makers at leading institutions, including asset and wealth managers. 

UK financial institutions are increasing investment to drive growth and long-term transformation, according to the latest Financial Institutions Sentiment Survey of UK-headquartered Lloyds Bank. 

The survey reveals that 55 per cent of institutions expect their business to grow over the next 12 months. This increases to 83 per cent of firms anticipating growth within their own businesses over a five-year period. To support these ambitions, 25 per cent anticipate further expansion within financial services, while 58 per cent expect to maintain their trajectory, underlining a stable and resilient outlook across the sector.

The annual survey interviewed over 100 UK senior decision-makers at banks, asset and wealth managers, insurers and financial sponsors, between 1 April 2025 and 19 May 2025. It reveals a financial services sector that remains focused on transformation and future competitiveness.

To deliver this growth, institutions are concentrating on strategic priorities. The survey shows that 46 per cent of institutions are planning to expand in existing markets, just under half are investing in emerging technologies such as artificial intelligence and automation, while 37 per cent are developing new products and services.

These ambitions are being backed by capital. Two-fifths of respondents plan to increase capital expenditure in the coming year, with investment channelled into digital transformation (47 per cent), workforce development (46 per cent) and AI applications (37 per cent) – a signal of intent to enhance productivity and future-proof operations.

Confidence in the long-term outlook remains resilient, with a majority of institutions expecting growth in the UK economy (58 per cent) and the financial services sector (56 per cent) over the next five years. 

“This year’s survey paints a clear picture of a sector that is resilient, ambitious and ready to invest,” Lisa Francis, head of institutional coverage at Lloyds, said. “Despite headwinds, financial institutions are continuing to focus on what matters: delivering for clients, investing in people and embracing new technologies. 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.” 

The survey’s optimism considers the UK’s relevance as a global financial centre. Sixty per cent of respondents believe that the UK will retain its international financial hub status, whilst recognising that continued reform and investment will be essential to sustaining this position in a rapidly-evolving global landscape.