Julien Eichinger – stock.adobe.c
Increasing numbers of banks see emerging technology as a priority of growth with artificial intelligence top of the list
While two-thirds (64%) of UK finance firms are planning to increase overall expenditure, 91% said they will spend more on tech, with emerging tech now topping growth priorities.
Emerging tech investment is the top growth priority for UK finance firms for the first time in the 10 year’s Lloyds Bank has carried out its Financial institutions sentiment survey.
The survey of more than 100 senior decision-makers at UK banks, insurers, private equity firms, and asset and wealth managers, found that over three-quarters (77%) see emerging-tech investment as a growth priority, compared to just 41% last year. Within this, 93% ranked artificial Intelligence (AI) as the most impactful tech of the next five years.
Rohit Dhawan, group executive director of AI at the bank, said AI has “crossed a threshold”, adding: “The question is no longer whether it works, but how quickly we can embed it at scale. At Lloyds, that means investing in technology, talent and governance in parallel, because deploying AI responsibly is what turns capability into sustained value for customers and the UK economy.”
There is also confidence in the sector, according to the survey, with 94% of respondents expecting their business to grow over the next decade, compared to 81% in last year’s survey. Nearly three-quarters (71%) of respondents backed the UK to retain its strong position in global financial services, up from 60% last year.
“This renewed confidence is being underpinned by a dramatic shift in focus towards new and emerging technologies, as institutions move from testing to deployment. Investment in this area is now a leading growth lever,” said the Lloyds Bank report.
Lisa Francis, global head of corporate and institutional banking coverage at Lloyds, said despite global uncertainty, financial institutions are “building confidence by harnessing technology to drive long-term growth”.
She added: “The sector is prioritising the areas that will define future competitiveness, from AI and emerging technology to data, talent and international expansion. 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 opportunities across markets.”
Lloyds Bank, for example, is heavily backing AI. In January, it announced plans to train all 67,000 of its employees in how to use the technology this year via its AI Academy. The bank said staff will be given interactive training modules, short courses, articles, podcasts and opportunities for community learning. It will kick off with every member of staff completing a module on responsible, safe and ethical AI use.
Lloyds wants its staff to be able to use AI in their everyday roles, with Ron van Kemenade, group chief operating officer at the banking group, saying: “Scaling AI is about getting real use cases into production so we can simplify processes for colleagues and deliver more personalised services for customers.
“By investing in the skills of our people, we can do this responsibly and at pace, improving service today and building the foundations to scale new innovations in the future.”
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