Between 2012 and 2023, the number of bank branches in the UK experienced a significant decline, falling from 11,355 to approximately 5,100. This reduction was especially pronounced among the UK's largest banks - HSBC, Lloyds, Barclays, and NatWest - each of which closed over 1,000 branches between 2017 and 2024.

The share of female employees in the total workforce of the largest banks in the United Kingdom (UK) was, on average, 52.47 percent in 2023. The most gender-diverse bank among the largest banks in the UK was Nationwide Building Society, where 60.7 percent of the employees were women. It was followed by Virgin Money UK, and The Co-operative Bank. Overall, the gender diversity in the total workforce was higher among the smaller banks. Four out of the five largest banks - HSBC Holdings, Barclays, NatWest Group, and Standard Chartered - did not rank among the five most gender-diverse banks.

Over the five years through 2025-26, UK banks' revenue is expected to climb at a compound annual rate of 4.8% to £136 billion, including an anticipated hike of 3.6% in 2025-26. After the financial crisis in 2007-08, low interest rates limited banks' interest in loans, hitting income. At the same time, a stricter regulatory environment, including increased capital requirements introduced under the Basel III banking reforms and ring-fencing regulations, constricted lending activity. To protect their profitability, banks like Lloyds have shut the doors of many branches and made substantial job cuts. Following the COVID-19 outbreak, the Bank of England adopted aggressive tightening of monetary policy, hiking interest rates to rein in spiralling inflation. The higher base rate environment lifted borrowing costs, driving interest income for banks, which reported skyrocketing profits in 2023-24. Although profit grew markedly, pressure to pass on higher rates to savers and fierce competition weighed on revenue growth at the tail end of the year. However, the prospect of rate cuts in 2024-25 saw many banks lower their savings rates, aiding revenue growth. In 2025-26, although further interest rate cuts are on the horizon, revenue is set to grow, due to lower borrowing costs driving activity in the housing market. Banks have also reduced their exposure to interest rate cuts through structural hedges, which lock in rates when they fluctuate. The FCA’s investigation into motor commissions has been a cause for concern over recent years, with banks like Lloyds and Santander ramping up provisions over 2024-25 in preparation for large payouts, if the Supreme Court deems banks were carrying out illegal activities. Over the five years through 2030-31, industry revenue is forecast to swell at a compound annual rate of 4% to reach £165.8 billion. Regulatory restrictions, tougher stress tests and stringent lending criteria will also hamper revenue growth. Competition is set to remain fierce – both internally from lenders that deliver their services exclusively via digital channels and externally from alternative finance providers, like peer-to-peer lending platforms. The possibility of legislation like the Edinburgh reforms will drive investment and lending activity in the coming years, if introduced. However, concerns surrounding the repercussions of less stringent capital requirements and the already fragile nature of the UK financial system pose doubt as to whether any significant changes will be made.

The savings rate of households in the United Kingdom (UK) fell slightly in the third quarter of 2024. That came after a period of rising household savings that peaked in the second quarter of 2024, when they amounted to 10.3 percent of their desposable income.

The report covers Banking as a Service Companies in UK and the market is segmented by Component (Platform and Service (Professional Service and Managed Service)), by Type (API based BaaS and Cloud-based BaaS), by Enterprise Size (Large enterprise and Small & Medium enterprise), and by End-user (Banks, NBFC/Fintech Corporations and Others).

The UK retail banking market, valued at approximately £68.77 billion in 2025, is projected to experience steady growth, driven by a combination of factors. Technological advancements, particularly in online and mobile banking, are significantly shaping customer preferences and driving market expansion. The increasing adoption of digital banking platforms, offering convenience and accessibility, is a key driver. Furthermore, the growing demand for personalized financial services and wealth management solutions among both individuals and businesses fuels market growth. Competition among established players like HSBC Holdings, Barclays PLC, and Lloyds Banking Group, along with the emergence of fintech companies, is fostering innovation and efficiency. Regulatory changes impacting lending practices and financial security also influence market dynamics. However, economic uncertainties and fluctuating interest rates pose potential challenges. The market is segmented by banking type (traditional, online, personal, business, wealth management), end-user (individuals, small businesses, corporates, high-net-worth individuals), and distribution channel (branches, online platforms, mobile apps). The shift toward digital channels presents opportunities for banks to enhance customer experience and optimize operational costs. While precise regional breakdowns within the UK are not provided, it is reasonable to expect that London and other major urban centers contribute significantly to the market size. Growth across regions will likely mirror national trends, influenced by factors such as regional economic performance, digital infrastructure availability, and the distribution of different customer segments. The projected CAGR of 3.45% indicates a consistent, albeit moderate, expansion over the forecast period (2025-2033). This moderate growth reflects the mature nature of the UK retail banking market and the potential for saturation in some segments. Nevertheless, continuous innovation and adaptation to evolving customer needs are expected to sustain the market's growth trajectory. Recent developments include: August 2024: Lloyds Bank launched a USD 137 cash offer for students opening current accounts. To qualify, students must deposit at least USD 622 between August 1 and October 31, 2024. Student account holders will also receive a 20% discount on selected Student Union events and can earn 2% interest on balances up to USD 6,219.September 2023: HSBC pioneered a partnership with Nova Credit, making it the first UK bank to allow newcomers to access their credit history from abroad. This initiative aims to facilitate smoother financial integration for individuals relocating to the United Kingdom.. Key drivers for this market are: The Shift Toward Digital Banking, with Customers Increasingly Using Online and Mobile Banking Services. Potential restraints include: The Shift Toward Digital Banking, with Customers Increasingly Using Online and Mobile Banking Services. Notable trends are: Deposit Trends and Digital Transformation Driving Traditional Banking.

The return on equity (ROE) of the banking sector in the United Kingdom (UK) fluctuated notably in the period between 2012 and 2021. The lowest ROE was measured in 2012 at negative *** percent. During the observed period, the highest ROE was reported in 2021, at roughly ***** percent.

Retail Banking Market Outlook

According to our latest research, the global retail banking market size reached USD 2.89 trillion in 2024, reflecting the sectorÂ’s robust expansion as digital transformation and evolving consumer preferences continue to reshape the financial services landscape. The market is projected to grow at a CAGR of 4.7% from 2025 to 2033, reaching an estimated USD 4.36 trillion by 2033. This impressive growth trajectory is driven by a combination of technological innovation, increased digital adoption, and the expanding financial inclusion initiatives across both developed and emerging economies.

One of the primary growth factors fueling the retail banking market is the accelerated pace of digitalization. Financial institutions worldwide are investing heavily in digital platforms, mobile applications, and omnichannel experiences to meet the changing expectations of tech-savvy consumers. The proliferation of smartphones and high-speed internet access has empowered customers to manage their finances remotely, making banking services more accessible and convenient. As a result, banks are prioritizing seamless online and mobile banking experiences, which not only enhance customer satisfaction but also reduce operational costs. This shift towards digital banking is expected to remain a critical driver for the retail banking market over the next decade.

Another significant factor contributing to the marketÂ’s growth is the increasing emphasis on financial inclusion, particularly in emerging markets. Governments and regulatory bodies are collaborating with financial institutions to extend banking services to unbanked and underbanked populations. Innovative products such as microloans, digital wallets, and simplified savings accounts are being introduced to cater to these segments, thereby expanding the customer base for retail banks. Additionally, the adoption of advanced technologies like artificial intelligence, machine learning, and data analytics is enabling banks to offer personalized financial solutions, improve risk assessment, and streamline operations, further propelling market expansion.

The competitive landscape in the retail banking market is also being reshaped by the entry of non-traditional players, including fintech firms and digital-only banks. These challengers are leveraging cutting-edge technology and agile business models to deliver innovative banking solutions, often at lower costs than traditional banks. This heightened competition is compelling established banks to accelerate their digital transformation initiatives and forge strategic partnerships to maintain their market share. Furthermore, evolving regulatory frameworks and open banking initiatives are fostering collaboration and innovation within the sector, creating new opportunities for growth and differentiation.

In the evolving landscape of retail banking, Hyper-Personalization in Banking is becoming a pivotal strategy for financial institutions aiming to enhance customer engagement and satisfaction. By leveraging big data, artificial intelligence, and machine learning, banks can gain deeper insights into individual customer behaviors and preferences. This allows them to tailor products, services, and communication to meet the unique needs of each customer. As consumers increasingly demand personalized experiences akin to those offered by tech giants, banks are investing in technologies that enable real-time data analysis and customer interaction. This shift not only improves customer loyalty but also opens new revenue streams by offering targeted financial solutions that resonate with customers on a personal level.

From a regional perspective, the Asia Pacific region continues to dominate the retail banking market, both in terms of market size and growth potential. Rapid urbanization, rising disposable incomes, and a burgeoning middle class are driving demand for retail banking services across countries such as China, India, and Southeast Asian nations. North America and Europe remain mature markets with high penetration rates, but ongoing digital transformation and the adoption of advanced banking technologies are sustaining steady growth. Meanwhile, Latin America and the Middle East & Africa are witnessing increased investments in banking infrastructure and digital platforms, paving the way for future m

Companies in the Investment Banking industry provide financial advisory services, offering their insight on IPOs, M&As and equity and debt security underwriting activity. Competition has been fierce in recent years, with a flood of boutique firms entering the industry as bankers look for healthier rewards than those offered by the more regulated larger investment banks. Growing M&A and IPO activity before 2022-23 ramped up demand for investment banking services, although this momentum lost speed in 2022-23 as access to cheap capital ended. Revenue is expected to contract at a compound annual rate of 8.1% over the five years through 2025-26 to £8 billion, including an expected drop of 0.5% in 2025-26. Profit is also expected to edge downwards in 2025, though it remains high. Capital market activity surged at the height of the COVID-19 pandemic, lifting demand for investment banking services as governments and large international businesses across the world raised capital to fund fiscal stimuli and maintain cash flow levels. The boom in debt and equity markets showed no sign of slowing the next year, with IPO and M&A activity reaching record levels in 2021-22, driving demand for investment bankers’ services. However, in the two years through 2023-24, M&A activity plummeted thanks to rising interest rates, mounting geopolitical tensions and a gloomy economic outlook, which put companies off from seeking takeovers. In 2024-25, M&A activity fared better than IPOs, welcoming improvements in consumer confidence amid interest rate cuts, aiding revenue growth. However, IPOs continued on their downward trajectory as geopolitical uncertainty and high interest rates resulted in many companies delaying listings. Over 2025-26, M&A activity is forecast to continue to climb, but IPO activity may stall as Trump's tariff announcements erode investor sentiment, weighing on revenue growth. Revenue is anticipated to grow at a compound annual rate of 4.5% over the five years through 2030-31 to £10 billion. Deal activity is set to build as lower interest rates make leveraged transactions more attractive. Competition will remain fierce, driving technological innovation as investment banks try to improve decision-making processes and scale operations through the use of AI. Still, strong competition from overseas exchanges, like the S&P 500 in the US, will dent UK IPO activity in the coming years as companies move away from UK listings and the lacklustre valuations they offer, weighing on revenue growth.

Banks from United Kingdom - Consolidated total assets (financial and non-financial) in All currencies with residents of All countries (total) (immediate counterparty basis), all sectors (amounts outstanding / stocks, all instruments, total (all maturities) )

The total assets of the banking industry in the United Kingdom grew significantly between 2022 and 2023, despite some fluctuations in recent years. In 2023, the total assets held at banks amounted to roughly ***** trillion U.S. dollars, which was a slight decrease compared to the previous year. HSBC held the highest value of assets, followed by Barclays and Lloyds Banking Group.

In size, it was USD 2,107.9 million in 2025 and would reach USD 9,960.9 million in 2035, growing at a high CAGR of 16.8% over that period.

Metric	Value
Industry Size (2025E)	USD 2,107.9 Million
Industry Value (2035F)	USD 9,960.9 Million
CAGR (2025 to 2035)	16.8%

Sub Region Wise outlook

Sub Region	CAGR (2025 to 2035)
Greater London	17.4%

Sub Region	CAGR (2025 to 2035)
Scotland	16.5%

Sub Region	CAGR (2025 to 2035)
Wales	16.2%

Sub Region	CAGR (2025 to 2035)
Yorkshire and the Humber	16.6%

Competitive Outlook

Company Name	Estimated Market Share (%)
ClearBank Ltd.	18 - 22%
Railsr	14 - 18%
11:FS Foundry	10 - 14%
Thought Machine	8 - 12%
Other Players	34 - 40%

United Kingdom UK: Domestic Credit: Provided by Financial Sector: % of GDP data was reported at 167.513 % in 2017. This records an increase from the previous number of 165.787 % for 2016. United Kingdom UK: Domestic Credit: Provided by Financial Sector: % of GDP data is updated yearly, averaging 98.603 % from Dec 1960 (Median) to 2017, with 58 observations. The data reached an all-time high of 208.895 % in 2009 and a record low of 34.719 % in 1980. United Kingdom UK: Domestic Credit: Provided by Financial Sector: % of GDP data remains active status in CEIC and is reported by World Bank. The data is categorized under Global Database’s United Kingdom – Table UK.World Bank.WDI: Bank Loans. Domestic credit provided by the financial sector includes all credit to various sectors on a gross basis, with the exception of credit to the central government, which is net. The financial sector includes monetary authorities and deposit money banks, as well as other financial corporations where data are available (including corporations that do not accept transferable deposits but do incur such liabilities as time and savings deposits). Examples of other financial corporations are finance and leasing companies, money lenders, insurance corporations, pension funds, and foreign exchange companies.; ; International Monetary Fund, International Financial Statistics and data files, and World Bank and OECD GDP estimates.; Weighted average;

United Kingdom UK: Banking Institutions: Foreign Assets data was reported at 3,692,394.000 GBP mn in Sep 2018. This records a decrease from the previous number of 3,715,082.000 GBP mn for Jun 2018. United Kingdom UK: Banking Institutions: Foreign Assets data is updated quarterly, averaging 547,933.000 GBP mn from Mar 1963 (Median) to Sep 2018, with 223 observations. The data reached an all-time high of 3,905,217.000 GBP mn in Dec 2008 and a record low of 1,693.000 GBP mn in Mar 1963. United Kingdom UK: Banking Institutions: Foreign Assets data remains active status in CEIC and is reported by International Monetary Fund. The data is categorized under Global Database’s United Kingdom – Table UK.IMF.IFS: Financial System: Deposit Money Banks: Quarterly.

The UK consumer banking market, encompassing a broad range of services from personal loans and mortgages to savings accounts and credit cards, is a dynamic and competitive landscape. While precise figures for market size and CAGR are absent, a reasonable estimate based on industry reports and similar developed economies suggests a 2025 market value exceeding £500 billion. The market's growth is propelled by several key drivers. Rising disposable incomes and a growing population fuel demand for financial products. Technological advancements, such as open banking and fintech innovations, are reshaping customer expectations and driving efficiency within the industry, leading to the adoption of digital banking and personalized financial management tools. Furthermore, changing regulatory landscapes, focusing on increased consumer protection and financial inclusion, are influencing market dynamics. However, the market faces certain headwinds. Intense competition among established players and emerging fintech companies keeps profit margins under pressure. Economic uncertainty, particularly fluctuating interest rates and potential recessionary periods, can significantly impact consumer spending and borrowing behavior, affecting the overall market growth. Stringent regulatory compliance and cybersecurity threats pose additional challenges for banks. Despite these constraints, the long-term outlook for the UK consumer banking market remains positive, driven by the sustained need for financial services, technological innovation, and evolving consumer preferences. Segmentation within the market, based on product type, customer demographics, and geographical location, presents opportunities for targeted growth and market penetration. The listed banks, including established players like Allied Irish Bank (UK) and newer entrants like Metro Bank, are constantly adapting their strategies to navigate this dynamic environment.

The UK Islamic Finance Market is Segmented by the Financial Sector (Islamic Banking, Islamic Insurance 'Takaful, ' Islamic Bonds 'Sukuk, ' Other Islamic Financial Institutions (OIFLs), and Islamic Funds). The Report Offers the Value (USD) for the Above Segments.

The total assets of the banking industry as a share of gross domestic product (GDP) in the United Kingdom fluctuated notably between 2002 and 2023, averaging around *** percent. In 2023, assets held at banks amounted to ****** percent of the total GDP, a significant decrease compared to the previous year. The value of total assets in the banking sector also slightly declined in 2023, reaching ***** trillion U.S. dollars.

The UK Banking as a Service (BaaS) market is experiencing robust growth, driven by the increasing adoption of open banking initiatives, the rising demand for digital financial solutions, and the need for enhanced customer experience. The market's compound annual growth rate (CAGR) exceeding 7.5% signifies a significant expansion, projected to continue throughout the forecast period (2025-2033). Key drivers include fintech innovation, the emergence of new business models enabled by APIs, and regulatory support for open banking. The segment breakdown reveals a strong focus on cloud-based BaaS solutions, favored by large enterprises and increasingly adopted by smaller businesses seeking scalable and cost-effective infrastructure. While the precise market size for the UK in 2025 is unavailable, considering the global market size and the UK's significant financial technology sector, a reasonable estimate would place the UK BaaS market at approximately £500 million in 2025. This figure is further supported by the projected CAGR and the significant presence of BaaS providers in the UK. The market is segmented by component (platform, professional services, managed services), product type (API-based and cloud-based BaaS), enterprise size (large and small/medium enterprises), and end-user (banks, NBFCs/Fintech corporations, and others). This segmentation highlights the diverse applications and adaptability of BaaS within the UK financial landscape. The competitive landscape is dynamic, featuring established players like Thought Machine and Starling Bank alongside innovative newcomers. This intense competition fosters innovation and pushes the boundaries of BaaS capabilities. Challenges include ensuring robust data security and compliance with evolving regulations, particularly concerning data privacy and customer protection. Despite these challenges, the long-term outlook for the UK BaaS market remains positive, fueled by ongoing technological advancements, increasing digitalization within the financial sector, and a growing ecosystem of partners and developers contributing to the expansion and sophistication of BaaS offerings. The continued growth of open banking and the increasing demand for personalized financial services will further propel the market's trajectory in the coming years. Recent developments include: On April 2022, PEXA, the Australian-founded fintech developed of a brand new payment scheme - PEXA Pay. At the same time, PEXA has partnered with ClearBank, clearing and embedded banking platform in the UK, to broaden access to its forthcoming remortgage platform., On July 2021, Paysafe (NYSE: PSFE), today announces a new partnership with Bankable, a global architect of 'banking-as-a-service' solutions. Through the global agreement, the two companies will collaborate to launch a broad range of integrated, omnichannel banking services from Paysafe.. Notable trends are: Demand for Embedded Finance is Driving Banking as a Service.

United Kingdom UK: Banking Survey: Claims on Private Sector data was reported at 2,852,966.000 GBP mn in Sep 2018. This records an increase from the previous number of 2,843,153.000 GBP mn for Jun 2018. United Kingdom UK: Banking Survey: Claims on Private Sector data is updated quarterly, averaging 468,565.000 GBP mn from Mar 1959 (Median) to Sep 2018, with 239 observations. The data reached an all-time high of 3,171,431.897 GBP mn in Mar 2010 and a record low of 3,207.000 GBP mn in Mar 1959. United Kingdom UK: Banking Survey: Claims on Private Sector data remains active status in CEIC and is reported by International Monetary Fund. The data is categorized under Global Database’s United Kingdom – Table UK.IMF.IFS: Financial System: Monetary: Quarterly.