In 2026, the banking and capital markets sector faces a range of challenges from embedding new prudential requirements, to the motor finance redress scheme, to improved trading controls.

Entering 2026, there are two key factors shaping strategic priorities for UK financial services: AI and distributed ledger technology (DLT) such as blockchains.

2026 began with geopolitical risks again high on the agenda. Despite this, we look at some tentative signs of optimism in business surveys and whether consumer sentiment might follow suit.