UK financial services firms more resilient to market turbulence

Surveying 800 executives from both regions, the research unveiled these key disparities:

• Resilience to market turbulence: 78% of UK executives cited high interest rates impacting their innovation and investment capabilities, while 91% of their US counterparts expressed the same concern.
• AI investment: UK firms are outpacing their US counterparts in investing in artificial intelligence (AI). Specifically, 58% of UK executives are increasing investment in generative AI compared to 45% of US executives.
• Customer experience: UK insurers prioritise customer experience more than their US counterparts. A striking 81% of UK insurance executives are investing in providing competitive interest rates and fees to consumers, in contrast to just 29% of US executives.

Himal Makwana, head of platforms, strategy, operations & venture at FIS, attributed these differences to the UK financial services sector’s adaptability and resilience.

He stated: “This could be because the UK financial services sector is more resilient to shocks, particularly given the current government’s efforts to stabilise conditions.”

He also noted the divergence in technology investment strategies and consumer preferences amid economic uncertainty:

• Technology investments: UK businesses focus on automation and self-service to cut costs while enhancing customer experiences.
• Consumer preferences: Financially concerned consumers seek personalised experiences and targeted services for easier money management.

This study underscores the robustness of UK financial services firms during economic fluctuations, their heightened AI investments, and their commitment to delivering superior customer experiences.