Financial Institutions Sentiment Survey 2021
Read time: 20 mins Added: 13/09/21
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.
Our specialists examine the key insights from the report.
Maria Nazarova-Doyle, Head of Pension Investments and Responsible Investments, at Scottish Widows, part of Lloyds Banking Group, discusses the sustainability findings, bringing context to what she is seeing within the sector.
Important legal information
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.
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