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Financial Institutions Sentiment Survey 2021

The latest insight into the opportunities, risks and expectations that are informing decision-making at financial services firms across the UK. 

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Financial Institutions Sentiment Survey 2021: On the road to recovery

We’ve surveyed more than 100 senior decision makers at financial services firms including global banks, insurers, wealth and asset managers and more, to get their opinions on the state of the sector as the UK starts to emerge from the coronavirus crisis.

The interactive report uncovers insights into the impact of COVID-19 on their expectations for growth, job creation and more, including their strategic investment plans and views on sustainability in the year of COP26.

 

The sector’s role in the economic recovery

The report finds a sector that has performed robustly through the pandemic, thanks in part to industry reforms since the 2008 financial crisis and its early adoption of digital technology, which enabled staff to efficiently switch to flexible working practices.

Two thirds of the firms surveyed now expect to grow their UK revenues during the year ahead – more than in 2019 before the pandemic hit. However, there are still potential headwinds, including regulatory reform and access to skills.

 

A sustained focus on technology investment

Technology remains the top investment priority for the UK financial services sector as firms seek to improve the customer experience, drive growth and boost productivity by investing in the cloud, APIs and Artificial Intelligence.

Almost half of respondents also flagged their desire to invest in FinTechs through acquisition and partnering, with the aim of developing new products and services.

 

Spotlight on sustainability

The sector has a critical role to play in funding the transition to a green economy. Reflecting that, our research found that climate change and sustainability are rising up boardroom agendas, cited as a top five strategic priority by 59% of respondents, up from 33% last year.

But firms are facing challenges as they work to reduce their environmental impact, primarily around evolving regulation and recruiting talent.

For a more detailed look at the research, download our full interactive report.

Expert analysis

Our specialists examine the key insights from the report. Bookmark this page to get further analysis on the technology and sustainability findings, as we release more in this series. 

 

Jeavon Lolay

Jeavon Lolay, Head of Economics & Market Insight, reflects on the economic outlook for financial institutions comparing the findings to other forecasts and sectors.

Watch analysis 

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Lloyds Bank is a trading name of Lloyds Bank plc, Bank of Scotland plc, Lloyds Bank Corporate Markets plc and Lloyds Bank Corporate Markets Wertpapierhandelsbank GmbH.

Lloyds Bank plc. Registered Office: 25 Gresham Street, London EC2V 7HN. Registered in England and Wales no. 2065. Bank of Scotland plc. Registered Office: The Mound, Edinburgh EH1 1YZ. Registered in Scotland no. SC327000. Lloyds Bank Corporate Markets plc. Registered office 25 Gresham Street, London EC2V 7HN. Registered in England and Wales no. 10399850. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under registration number 119278, 169628 and 763256 respectively.

Lloyds Bank Corporate Markets Wertpapierhandelsbank GmbH is a wholly-owned subsidiary of Lloyds Bank Corporate Markets plc. Lloyds Bank Corporate Markets Wertpapierhandelsbank GmbH has its registered office at Thurn-und-Taxis Platz 6, 60313 Frankfurt, Germany. The company is registered with the Amtsgericht Frankfurt am Main, HRB 111650. Lloyds Bank Corporate Markets Wertpapierhandelsbank GmbH is supervised by the Bundesanstalt für Finanzdienstleistungsaufsicht.

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