- The UK financial services sector contributed £208.2 billion to the economy in 2023, accounting for 8.8% of economic output.
- At Prosper UK’s financial services roundtable, representatives from fintech, retail banking, investment banking and trade bodies highlighted rising costs, over-regulation and a shrinking talent pool.
- Participants proposed reforms to strengthen the UK’s competitiveness as a destination for financial services investment and talent.
The financial services sector has historically been one of the UK’s greatest economic assets. In 2023, it contributed £208.2 billion to the economy, and in 2024 the UK recorded a £96 billion trade surplus in financial services.
However, businesses face rising employment and operating costs, a regulatory environment shaped by post-2008 risk aversion, and increasing difficulty recruiting internationally. Participants also highlighted opportunities to mobilise domestic savings, simplify investment products and improve financial literacy.
On 15 April 2026, Prosper UK brought together representatives from across the financial services industry in London to discuss the challenges facing the sector and potential solutions. This report sets out the views and recommendations expressed at that roundtable; they do not necessarily represent Prosper UK policy.
Recommendations from the Financial Services Roundtable
- Remove the 0.5% stamp duty on equity trading transactions.
- Lower National Insurance Contributions and review Skilled Worker visa salary thresholds.
- Reform non-domicile tax changes to retain globally mobile talent and capital.
- Review the use of Section 166 powers by the Financial Conduct Authority.
- Align the Financial Ombudsman Service’s role with the FCA to prevent regulatory overlap.
- Reduce disproportionate compliance costs while protecting retail consumers.
- Simplify Individual Savings Account (ISA) rules to encourage investment.
- Improve financial literacy with the assistance of AI-driven tools.
- Strengthen collaboration between banks, telecommunications businesses and social media firms to tackle fraud.
- Increase pension auto-enrolment from 8% to 12%, then assess whether further increases are needed.
Read the full report
Download Prosper UK’s October 2026 report: Challenges Facing the UK Financial Sector.