What change is creating across UK financial services

The UK financial services sector is going through a period of significant change. Ownership structures are evolving, capital is moving more freely across borders, and firms in insurance, pensions, wealth and asset management are making deliberate choices about how they position for the next phase of growth.

My colleague, Alistair Brindley, recently explored one important aspect of this, looking at what increased overseas ownership of British insurers could mean for the future of the sector. Today, I want to widen the lens and look at the opportunities all this change is creating in the present.

A market in motion

I’m seeing genuine energy, real investment, and meaningful growth happening at the moment. There is turbulence, of course. But alongside macroeconomic uncertainty and regulatory change, activity has remained stubbornly strong. 

The pace of mergers and acquisitions alone tells its own story:

• Brookfield’s £2.4bn acquisition of Just Group
• Athora’s £5.7bn purchase of PIC
• Sompo’s takeover of Aspen 
• NatWest Groups’ landmark agreement to acquire Evelyn Partners
• WTW buying Cushon from NatWest Group
• The merger of One Family and Scottish Friendly
• Nuveen’s £9.9bn takeover deal with Schroders
• The sale of Utmost Life and Pensions to JAB Insurance

The capital and scale behind these transactions are expanding what’s possible across insurance and pensions. Pension trustees are finding it easier to secure schemes, insurers are accessing deeper pools of capital, and businesses are gaining partners willing to underwrite long-term growth.

That momentum is particularly clear in pensions. The BPA market saw record-breaking activity in 2025, with defined benefit schemes continuing their steady move towards insurers through buy-ins and buy-outs. A similar pattern is visible in wealth and asset management. Platforms are investing to build scale, supported by an increasingly active capital market. PE backed 72% of UK wealth management M&A in H1 2025, with transactions like the £5.4bn acquisition of Hargreaves Lansdown signalling sustained confidence in the sector’s long-term prospects.

Crucially, this activity is being matched by investment in people. According to ONS, UK financial services added ~13,000 payrolled employees in 2025, ranking among the strongest hiring sectors in the UK. That shows how firms are responding to pressure: not by retrenching, but by building capacity. 

What this period of change is unlocking 

I see this wave of activity as a catalyst rather than a constraint. When global firms invest into UK financial services, they bring resources, networks and capital that raise the bar across the market.

In pensions, the transfer of defined benefit liabilities to insurers has delivered greater clarity and security for schemes. Insurers have responded by expanding capacity, developing more sophisticated reinsurance structures, and sharpening asset strategies. The system has matured as a result.

In wealth and asset management, consolidation is delivering real economies of scale, easing cost pressures while enabling better infrastructure, stronger technology investment and improved client outcomes. Strategic partnerships are allowing firms to grow without losing their identity, while clients benefit from providers with greater resilience and reach.

There is a wider effect, too. As UK financial services become more globally connected, ideas, talent and capital circulate more freely. Competition increases, standards rise, and firms are pushed to be clearer about where they differentiate.

Concentration, but not uniformity

A question I hear often is whether all of this will lead to a landscape dominated by five or six major players. There is a logic behind that view. Regulatory demands are rising, capital requirements are tougher, and clients increasingly expect global reach. In such an environment, smaller firms can struggle to compete.

What stands out to me, though, is how measured this shift has been. Predictions of rapid concentration have circulated for years – yet strong mid-sized firms remain competitive, specialist boutiques are thriving, and regional players are retaining their loyal client bases.

The future looks mixed rather than monolithic. We may well see larger platforms consolidating power in areas like BPA or large-scale asset management. But there’s still meaningful space for agile firms that compete through expertise, service, and focus.

Leadership as a response to change

One of the clearest signals of how organisations are adapting is leadership turnover. Over the past year, we’ve seen a steady flow of CEO changes, board reshuffles and senior appointments.

While it’s easy to call this instability, I see it as evolution. As ownership models and strategic priorities shift, leadership profiles naturally follow. New owners often want different capabilities, while boards are reassessing what they need at the top, placing greater emphasis on transformation experience, stakeholder management, and long-term judgement.

It’s a recalibration of leadership at the highest level. Rather than pulling back, companies are becoming more deliberate about who leads them through complexity.

What this means for financial services executive search

This environment has reshaped the work we’re doing at Hanover. We’re seeing a clear increase in C-suite, NED and Chair mandates across insurance, pensions, asset and wealth management, alongside a more thoughtful approach to board composition.

Clients are looking for leaders who understand both UK regulation and global capital dynamics, who can operate confidently within PE-backed or multinational structures, and who can build culture through periods of change.

That demand requires a more precise and consultative approach to search. I’m spending most of my time with boards and executive teams, helping them interrogate fit, leadership dynamics and long-term alignment. That depth of involvement is what makes the work meaningful for me, and where I see the biggest impact for clients. 

A market that rewards adaptation

What excites me most is how alive the UK financial services sector feels right now. Change is everywhere, but so is opportunity. 

I don’t see the industry drifting towards uniformity. I see it evolving towards a more globally integrated, capital-rich, and leadership-driven future. That will challenge some firms, reward others, and force everyone to sharpen their strategy.

For FS leaders, this environment presents a moment to step into roles of greater influence and impact. For our clients, it offers the chance to build stronger, more resilient organisations. 

I’d love to compare notes. Whether you’re navigating leadership decisions, thinking about your next phase of growth, or simply reflecting on what you’re seeing in the market, I’m always happy to have a conversation.