COMPANY PROFILE -U.K. Banking Sector
Business Sector :Banking and Financial Services
Operating Geography :United Kingdom
About U.K. Banking Sector :
The banking sector in the United Kingdom is made up of several private UK banks, international banks, and building societies. The sector is dominated by a few large banks that compete for market position. There are currently 344 banks and 52 building societies in the UK. In recent years, there has been a steady increase in the use of online and mobile banking in the UK, with approximately two-thirds of UK adults using online banking and four in ten using mobile banking. Physical banking, on the other hand, remains popular, with around 20,000 locations across the UK. The Bank of England is the country's central bank, and it has been state-owned since 1946. The Financial Conduct Authority regulates banks in the United Kingdom (FCA). The financial services sector contributed £164.8 billion to the UK economy in 2020, accounting for 8.6 percent of total economic output. The sector was centered in London, where half of its output was generated.
In terms of its proportion of national economic output, the UK financial services sector was the third largest in the OECD in 2020. Luxembourg's financial services sector was the largest in the OECD, accounting for 25% of the country's GDP. In the first quarter of 2021, there were 1.1 million financial services jobs in the UK, accounting for 3.3 percent of all jobs.
U.K. Banking Sector Revenue :
£164.8 billion - FY ending 31st March 2020 (y-o-y growth 31.94%)
£124.9 billion - FY ending 31st March 2019
Competitive Analysis of U.K. Banking Sector
The SWOT analysis for UK Banking Sector is presented below in a matrix followed by the detailed analysis report:
| Strengths | Weaknesses |
1. One of the largest financial sectors among OECD countries
2. Competitive job landscape compared to other EU countries
3. Steady increase in contribution to GDP over the years
4. Long-standing trade surplus in financial services | 1. Massive operational losses due to COVID-19
2. History of controversies and insider trading allegations
3. Restructuring losses due to new regulations
4. Wide disparity of output across regions |
| Opportunities | Threats |
1. Increasing resiliency of banking sector
2. Creating investment opportunities through digital assets
3. Collaborating with fintech for greater efficiency | 1. Fragmented digitization can lead to “technology traps”
2. Increase in occurrence of cyber attacks
3. Falling exports of financial services to EU |
On purchase the U.K. Banking Sector SWOT and PESTLE Analysis PDF report will reach you within minutes. At rare times, a slight delay not exceeding 1 hour might be caused.
Detailed SWOT Analysis of U.K. Banking Sector
Strength
1. One of the largest financial sectors among OECD countries: In 2020, UK’s banking and financial sector accounted for 9% of the country’s GDP, making it the third highest proportion of contribution among OECD countries. This is a major improvement from the 9th position it held in 2019. UK’s banking sector comes behind Luxemburg’s financial sector which contributed close to 25% of its GDP in 2020 and Chile (10%). Luxembourg can be called an outlier in this situation as the small country is uncommonly reliant on its financial sector. UK’s banking sector consistently ranks among the world’s most innovative and competitive sectors. In 2021, the GFCI (Global Financial Centers Index) ranked London 2nd in the world, narrowly behind New York. This index is a twice-yearly index which compares the competitiveness of the world’s financial centers. London has retained its 2nd position since 2018, making it the highest ranked financial center in Europe. Other European cities are ranked much lower such as Paris (10th), Amsterdam (17th), Geneva (17th), etc.
2. Competitive job landscape compared to other EU countries: London is the world's most international and well-connected financial center, with unparalleled access to global markets. It attracts workers from all over the world, creating a diverse pool of financial and professional services specialists with deep human ties to virtually every economy on the planet. Every day, more than 300 languages are spoken. The United Kingdom is physically connected, with one of the most extensive networks of flight connections – and digitally, with 96 percent superfast internet coverage. As a result of its open and multi-cultural society, the United Kingdom provides a creative energy that spans the country's sectors and economy. The importance of the UK financial sector to the rest of the EU is also obvious. Nearly $1.4 trillion is lent by British banks to EU companies and governments. Much of the financial activity in Europe is carried out either directly or indirectly through London (87 percent of US investment banks' EU staff are based in London). Furthermore, the financial sector has been one of the primary beneficiaries of the single market.
The remaining section under "Strength" is available only in the 'Complete Report' on purchase.
Weakness
This section is available only in the 'Complete Report' on purchase.
Opportunity
This section is available only in the 'Complete Report' on purchase.
Threat
This section is available only in the 'Complete Report' on purchase.
The PESTLE analysis for UK Banking Sector is presented below in a table followed by the detailed analysis report:
| Political | Economical |
1. Government plans to support FinTechs
2. Uncertainty regarding UK-EU trade deal | 1. Increase in M&A activity due to market pressures
2. Discontinuation of LIBOR as global interest benchmark |
| Social | Technological |
1. Increasing demand for digital banking solutions
2. Ageing UK population keen to invest more | 1. Emerging fintech players in the banking industry
2. Investment in cloud-based technology to increase scale of business |
| Legal | Environmental |
1. Uptick in loan loss provisions under IFRS 9
2. FCA’s ongoing commitment towards vulnerable customers | 1. Big banks embracing sustainability
2. Issuance of Green Bonds by the UK Government |
On purchase the U.K. Banking Sector SWOT and PESTLE Analysis PDF report will reach you within minutes. At rare times, a slight delay not exceeding 1 hour might be caused.
Detailed Pestle Analysis of U.K. Banking Sector
Political
This section is available only in the 'Complete Report' on purchase.
Economic
This section is available only in the 'Complete Report' on purchase.
Social
This section is available only in the 'Complete Report' on purchase.
Technological
This section is available only in the 'Complete Report' on purchase.
Legal
This section is available only in the 'Complete Report' on purchase.
Environmental
1. Big banks embracing sustainability: Consumers are increasingly demanding environmentally friendly goods and services, and more people want to know that their investments are supporting environmental, social, and governance (ESG) change. Renewable energy now accounts for one-third of global power capacity and has the potential to increase further. In its 2020 awards, The Banker named HSBC Investment Bank of the Year for Sustainability, praising the company's impactful and holistic approach to ESG issues. Goldman Sachs has committed $750 billion to sustainable finance by 2030 and is already one-third of the way there. Meanwhile, Citigroup has pledged $1 trillion to sustainable finance by 2030. Barclays has committed to invest over £100bn in the green bond pool by 2030. In 2020, Barclays launched a COVID-19 Community Aid Package (CAP) worth £100m with the intention of helping communities affected by the pandemic. Over £100m of fees and interest payments were also waived off for customers who were unable to pay back loans on time and £27bn was loaned to British businesses to support them during the trying times. There was a time when banking and sustainability were seen as diametrically opposed, but that perspective is now gradually changing.
The remaining section under "Environment" is available only in the 'Complete Report' on purchase.
Major Competitors :
- New York
- Luxembourg
- Paris
- Frankfurt
- Hong Kong
- Singapore
Major Brands :
- Barclay’s
- HSBC
- Lloyd’s Banking Group
- NatWest
- Standard Charter
- Banco Santader
On purchase the U.K. Banking Sector SWOT and PESTLE Analysis PDF report will reach you within minutes. At rare times, a slight delay not exceeding 1 hour might be caused.
TABLE OF CONTENTS
DELIVERY AND FORMAT
WHY CHOOSE US?
You may also be interested in other analyses of U.K. Banking Sector:
-
| U.K. Banking Sector Porter's Five Forces Analysis |
|
-
| U.K. Banking Sector VRIO Analysis |
|
-
| U.K. Banking Sector Value Chain Analysis |
|
-
| U.K. Banking Sector Covid-19 Impact Analysis |
|
-
| U.K. Banking Sector BCG Analysis |
|
-
| U.K. Banking Sector Segmentation, Targeting and Positioning (STP) Analysis |
|
-
| U.K. Banking Sector Ansoff Matrix Analysis |
|
Request for Quotation
We do not share your information with anyone. However, we may send you emails on our new reports and solutions.
Get The Free Sample
Company Overview Report
This report is shared in order to give you an idea of what the complete Company Overview Report will cover after purchase. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing.
Get this report delivered straight into your email inbox for free.
You also agree to receive email updates from us on our new reports and solutions.
We do not share your information with anyone. However, we may send you emails on our new reports and solutions.
Request for Quotation
We do not share your information with anyone. However, we may send you emails on our new reports and solutions.
Get The Free Sample
Competitor Analysis Report
This report is shared in order to give you an idea of what the complete Competitor Analysis Report will cover after purchase. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing.
Get this report delivered straight into your email inbox for free.
You also agree to receive email updates from us on our new reports and solutions.
We do not share your information with anyone. However, we may send you emails on our new reports and solutions.
Request for Quotation
We do not share your information with anyone. However, we may send you emails on our new reports and solutions.
Get The Free Sample
Porter's Five Forces Analysis Report
This report is shared in order to give you an idea of what the complete Porter's Five Forces Analysis Report will cover after purchase. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing.
Get this report delivered straight into your email inbox for free.
You also agree to receive email updates from us on our new reports and solutions.
We do not share your information with anyone. However, we may send you emails on our new reports and solutions.
Request for Quotation
We do not share your information with anyone. However, we may send you emails on our new reports and solutions.
Get The Free Sample
VRIO Analysis Report
This report is shared in order to give you an idea of what the complete VRIO Analysis Report will cover after purchase. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing.
Get this report delivered straight into your email inbox for free.
You also agree to receive email updates from us on our new reports and solutions.
We do not share your information with anyone. However, we may send you emails on our new reports and solutions.
Request for Quotation
We do not share your information with anyone. However, we may send you emails on our new reports and solutions.
Get The Free Sample
Value Chain Analysis Report
This report is shared in order to give you an idea of what the complete Value Chain Analysis Report will cover after purchase. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing.
Get this report delivered straight into your email inbox for free.
You also agree to receive email updates from us on our new reports and solutions.
We do not share your information with anyone. However, we may send you emails on our new reports and solutions.
Request for Quotation
We do not share your information with anyone. However, we may send you emails on our new reports and solutions.
Get The Free Sample
Regulatory Outlook Report
This report is shared in order to give you an idea of what the complete Regulatory Outlook Report will cover after purchase. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing.
Get this report delivered straight into your email inbox for free.
You also agree to receive email updates from us on our new reports and solutions.
We do not share your information with anyone. However, we may send you emails on our new reports and solutions.
Request for Quotation
We do not share your information with anyone. However, we may send you emails on our new reports and solutions.
Get The Free Sample
Risk Analysis Report
This report is shared in order to give you an idea of what the complete Risk Analysis Report will cover after purchase. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing.
Get this report delivered straight into your email inbox for free.
You also agree to receive email updates from us on our new reports and solutions.
We do not share your information with anyone. However, we may send you emails on our new reports and solutions.
Request for Quotation
We do not share your information with anyone. However, we may send you emails on our new reports and solutions.
Get The Free Sample
Key Performance Indicators (KPI's) Report
This report is shared in order to give you an idea of what the complete Key Performance Indicators (KPI's) Report will cover after purchase. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing.
Get this report delivered straight into your email inbox for free.
You also agree to receive email updates from us on our new reports and solutions.
We do not share your information with anyone. However, we may send you emails on our new reports and solutions.
Request for Quotation
We do not share your information with anyone. However, we may send you emails on our new reports and solutions.
Get The Free Sample
Environmental, Social, and Governance (ESG) Analysis Report
This report is shared in order to give you an idea of what the complete Environmental, Social, and Governance (ESG) Analysis Report will cover after purchase. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing.
Get this report delivered straight into your email inbox for free.
You also agree to receive email updates from us on our new reports and solutions.
We do not share your information with anyone. However, we may send you emails on our new reports and solutions.
Request for Quotation
We do not share your information with anyone. However, we may send you emails on our new reports and solutions.
Get The Free Sample
M&A Analysis Report
This report is shared in order to give you an idea of what the complete M&A Report and Analysis Report will cover after purchase. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing.
Get this report delivered straight into your email inbox for free.
You also agree to receive email updates from us on our new reports and solutions.
We do not share your information with anyone. However, we may send you emails on our new reports and solutions.
Request for Quotation
We do not share your information with anyone. However, we may send you emails on our new reports and solutions.
Get The Free Sample
Subsidiaries, Partnerships and Collaborations Report
This report is shared in order to give you an idea of what the complete Subsidiaries, Partnerships and Collaborations Report will cover after purchase. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing.
Get this report delivered straight into your email inbox for free.
You also agree to receive email updates from us on our new reports and solutions.
We do not share your information with anyone. However, we may send you emails on our new reports and solutions.
Request for Quotation
We do not share your information with anyone. However, we may send you emails on our new reports and solutions.
Get The Free Sample
Stakeholder Analysis Report
This report is shared in order to give you an idea of what the complete Stakeholder Analysis Report will cover after purchase. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing.
Get this report delivered straight into your email inbox for free.
You also agree to receive email updates from us on our new reports and solutions.
We do not share your information with anyone. However, we may send you emails on our new reports and solutions.
Request for Quotation
We do not share your information with anyone. However, we may send you emails on our new reports and solutions.
Get The Free Sample
Technology Landscape and Outlook Report
This report is shared in order to give you an idea of what the complete Technology Landscape and Outlook Report will cover after purchase. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing.
Get this report delivered straight into your email inbox for free.
You also agree to receive email updates from us on our new reports and solutions.
We do not share your information with anyone. However, we may send you emails on our new reports and solutions.
Request for Quotation
We do not share your information with anyone. However, we may send you emails on our new reports and solutions.
Get The Free Sample
Covid-19 Impact Analysis Report
This report is shared in order to give you an idea of what the complete Covid-19 Impact Analysis Report will cover after purchase. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing.
Get this report delivered straight into your email inbox for free.
You also agree to receive email updates from us on our new reports and solutions.
We do not share your information with anyone. However, we may send you emails on our new reports and solutions.
Request for Quotation
We do not share your information with anyone. However, we may send you emails on our new reports and solutions.
Get The Free Sample
Key News and Events Report
This report is shared in order to give you an idea of what the complete Key News and Events Report will cover after purchase. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing.
Get this report delivered straight into your email inbox for free.
You also agree to receive email updates from us on our new reports and solutions.
We do not share your information with anyone. However, we may send you emails on our new reports and solutions.
Request for Quotation
We do not share your information with anyone. However, we may send you emails on our new reports and solutions.
Get The Free Sample
BCG Analysis Report
This report is shared in order to give you an idea of what the complete BCG Analysis Report will cover after purchase. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing.
Get this report delivered straight into your email inbox for free.
You also agree to receive email updates from us on our new reports and solutions.
We do not share your information with anyone. However, we may send you emails on our new reports and solutions.
Request for Quotation
We do not share your information with anyone. However, we may send you emails on our new reports and solutions.
Get The Free Sample
Digital Marketing and Social Media Strategy Analysis Report
This report is shared in order to give you an idea of what the complete Digital Marketing and Social Media Strategy Analysis Report will cover after purchase. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing.
Get this report delivered straight into your email inbox for free.
You also agree to receive email updates from us on our new reports and solutions.
We do not share your information with anyone. However, we may send you emails on our new reports and solutions.
Request for Quotation
We do not share your information with anyone. However, we may send you emails on our new reports and solutions.
Get The Free Sample
Segmentation, Targeting and Positioning (STP) Analysis Report
This report is shared in order to give you an idea of what the complete Segmentation, Targeting and Positioning (STP) Analysis Report will cover after purchase. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing.
Get this report delivered straight into your email inbox for free.
You also agree to receive email updates from us on our new reports and solutions.
We do not share your information with anyone. However, we may send you emails on our new reports and solutions.
Request for Quotation
We do not share your information with anyone. However, we may send you emails on our new reports and solutions.
Get The Free Sample
Ansoff Matrix Analysis Report
This report is shared in order to give you an idea of what the complete Ansoff Matrix Analysis Report will cover after purchase. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing.
Get this report delivered straight into your email inbox for free.
You also agree to receive email updates from us on our new reports and solutions.
We do not share your information with anyone. However, we may send you emails on our new reports and solutions.
Check Out Analysis of Other Relevant Companies
References used in U.K. Banking Sector SWOT & PESTLE Analysis Report
1. Financial services: contribution to the UK economy - https://researchbriefings.files.parliament.uk/documents/SN06193/SN06193.pdf
2. The UK is the world’s global financial centre - https://www.theglobalcity.uk/global-financial-centre
3. UK banking sector: top ten themes for 2021 and beyond | Grant Thornton - https://www.grantthornton.co.uk/insights/uk-banking-sector-top-ten-themes-for-2021-and-beyond/
4. Discredit history: 10 years of Barclays scandals | Barclays | The Guardian - https://www.theguardian.com/business/2021/nov/01/discredit-history-10-years-of-barclays-scandals
5. Summer of scandal: the British banking controversies rocking the City of London | London Evening Standard | Evening Standard - https://www.standard.co.uk/business/business-news/summer-of-scandal-the-british-banking-controversies-rocking-the-city-of-london-8049429.html
The detailed complete set of references are available on request in the 'Complete report' on purchase.
How to Reference This Page?
You can use the following in your reference section in order to give credit to the source. For different referencing styles and detailed guidelines, please click here.
U.K. Banking Sector SWOT and PESTLE Analysis - SWOT & PESTLE.COM
SWOT & PESTLE.com (2025). U.K. Banking Sector SWOT and PESTLE Analysis - SWOT & PESTLE.com. [online] Available at: https://www.swotandpestle.com/uk-banking-sector/ [Accessed 11 Feb, 2025].
In-text: (SWOT & PESTLE.com, 2025)
Copyrights and Disclaimer
U.K. Banking Sector SWOT and PESTLE analysis has been conducted and reviewed by senior analysts from Barakaat Consulting.
Copyright of U.K. Banking Sector SWOT and PESTLE Analysis is the property of Barakaat Consulting. Please refer to the Terms and Conditions and Disclaimer for usage guidelines.
Safe and secure payments
