Emerging technologies such as AI, and the increasing importance of private markets, are two major themes in a Lloyds annual survey.

A study of views among 100 decision-makers at banks, wealth managers, investment firms and other businesses finds that more than three-quarters (77 per cent) give priority to spending on new and emerging technologies.

That result is almost double that of those expressing similar views a year ago, Lloyds Banking Group said its survey, issued a few days ago.

Some 93 per cent think that AI and machine learning will have the biggest impact on UK financial services over the next five years, the bank found in its 10th annual Financial Institutions Sentiment Survey, conducted in the UK.

The authors of the report said that asset and wealth managers are more focused on expanding access to private markets as they seek new growth opportunities. They are also selective in how they manage liquidity and valuation challenges.

Growth optimism rises
The survey found that 94 per cent of respondents said they expect their business to grow over the next decade, up from 81 per cent last year. Shorter-term growth outlooks are also improving year-on-year, with five-year expectations rising to 92 per cent from 83 per cent and 12-month expectations increasing to 67 per cent from 54 per cent.

Tech
More than nine in 10 respondents (93 per cent) think that AI and machine learning will have the largest impact on UK financial services over the next five years, while 91 per cent expect their organisation’s investment in AI to increase over the next 12 months.

Private markets 
Nearly a third (29 per cent) of respondents are partnering with specialist managers or platforms to expand access to private markets. A further 29 per cent are concentrating on improving distribution and client access to private market strategies, underlining growing investor demand for alternatives.