UK financial services leaders are growing markedly more confident in their long-term prospects, and technology is the reason why. Lloyds Bank's 10th annual Financial Institutions Sentiment Survey finds that 94% of senior decision-makers now expect business growth over the next decade, with AI and advanced data tools shifting rapidly from pilot projects to full-scale deployment.
Confidence Climbs Across Every Time Horizon
The 10th annual survey by Lloyds Bank, which supports 27 million retail and commercial finserv customers, polled more than 100 senior decision-makers across the UK's largest financial services firms. Conducted between March and April, the research found that 94% of respondents, including asset and wealth managers, insurers, financial sponsors and banks, expect their business to grow over the next decade, up sharply from 81% in the 2025 survey.
Shorter-term outlooks have improved just as fast. Five-year growth expectations rose from 83% to 92%, while 12-month expectations climbed from 54% to 67% year-on-year.
The Tech Investment Surge
Lloyds notes that this confidence is backed by a "dramatic shift" toward emerging technologies, as financial institutions move past the pilot phase and into widespread deployment. The role of technology in business expansion has accelerated rapidly: just 25% of respondents in 2024 said tech investment acted as a key growth lever. That figure rose to 41% in 2025 and has now surged to 77% in 2026.
To support these initiatives, 64% of respondents plan to increase capital expenditure year-on-year, with funding targeted at operational resilience alongside long-term competitiveness and productivity.
"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."— Lisa Francis, Global Head of CIB Coverage, Lloyds Banking Group
Shifting From Ambition to Adoption
AI is at the forefront of this transformation. The survey shows that 93% of leaders believe AI and machine learning will have the biggest impact on UK financial services over the next five years, while 91% expect their organisations to increase specific investment into AI over the next 12 months.
"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."— Lisa Francis, Global Head of CIB Coverage, Lloyds Banking Group