UK Banks Face Critical Crossroads in 2026, KPMG Report โWarns
LONDON – UK banks are entering a pivotal year in 2026, facing a โconfluenceโ of challenges that will define the sector’s future trajectory, according to a new report by KPMG UK. The firm identifies five key forces – the skills gap, diversity of thought, responsible AI implementation, regulatory fragmentation, and workforce adaptation – that will separate successful institutions from those left behind.
The report, authored by KPMG UK Banking Sector Lead Peter Rothwell, highlights a growing disconnect between the technological fluency of junior staff and senior leadership. Thisโค disparity, rothwell notes, “creates tensions and slows innovation,” necessitating leadershipโ development programs thatโค prioritize both financial expertise and technological understanding.
Beyond skills,the report stresses the critical importance of โขdiverse perspectives in strategic decision-making. “Too frequently enough, strategic decisions are โmadeโ within โecho chambers, with a narrow set of voices dominating,” the report states.Broader โinclusion across genders, backgrounds, and experiences is deemed “essential to strengthening decision-making and reducing blind spots.”
As โฃbanks increasingly integrate Artificial intelligence โand other advanced technologies, the report cautions against prioritizing technical implementation over robust governance and ethical considerations. Failure to do so, it warns, “risks undermining trust andโ resilience.” โข Strong risk cultures prioritizing the โethical โuse of data are paramount.
Rothwellโค emphasizes that 2026 will be a year of decisive action. “The winners will not be those that try to do โขeverything โฃbut those that set a clear course and execute it with conviction,” heโค asserts.”Clarity,agility andโค conviction will define successโ in โthe yearโข ahead.”โข
Despite a fundamentally strong foundation, UK banks must act โdecisively toโ shape their desired future, the report concludes.
About the Author:
Peter Rothwell is the Banking Sectorโข Lead for KPMGโค UK. He has โ15 years of experience advising banksโ on treasury, risk, and regulatory matters. Prior to joining KPMG, Rothwell spent 12โ years in the banking industry at Deutsche bank, Morgan Stanley, ANZ, and โNational Australia Bank, holding roles across both front and back officeโฃ functions.