Half of UK FS chief executives ‘very optimistic’ for next 12 months despite capital constraints

Over half (51%) of UK financial services (FS) chief executives are very optimistic about their sector outlook for the next 12 months.

This is according to the latest Ernst Young-Parthenon CEO Outlook Survey of global chief executives, which said that this optimism comes despite a challenging domestic and global market.

For example, less than a third (31%) of UK FS leaders surveyed report being very optimistic about the wider UK economic outlook and just 16% are very optimistic about the global economy.

Meanwhile, macroeconomics and geopolitical instability were viewed as the biggest risks to businesses over the next year (59% and 56% respectively), followed by cybersecurity (30%).

Martina Keane, UK and Ireland FS leader at EY, said: “While financial services firms are undoubtedly operating against a challenging macroeconomic backdrop, UK chief executives are not standing still.

”Amid ongoing uncertainty, there is a strong determination among leaders to focus on what’s within their control – taking a pragmatic, deliberate approach to growth and investment decisions that set them up for the future.”

Use of AI

Artificial Intelligence (AI) is emerging as the clear priority in these decisions.

Almost nine in ten (88%) of the UK FS chief executives surveyed said their planned levels of AI investment had increased in 2026 compared with 2025. 

And 95% said they also expect their organisation’s appetite for M&A to increase over the next 12 months compared to 2025, with a quarter (25%) saying the ability to enhance technology or AI capabilities was the most important driver in their M&A decisions.

”AI and emerging technology are clearly at the heart of this strategy, and are becoming increasingly central, if not the most important factor, in transformation agendas and portfolio decisions, as firms look to drive long-term growth and resilience,” Keane said.