Global Financial Firms Adapt to Disruption with Strong Growth Outlook

A new report by DLA Piper highlights a resilient and forward-looking financial services sector, with firms positioning themselves for growth despite rising global uncertainties. The study, Financial Futures: Leading through Disruption, provides a comprehensive overview of how financial institutions are adapting to geopolitical tensions, regulatory shifts, and rapid technological change.

Based on insights from nearly 800 senior decision-makers across banks, fund managers, fintechs, and market infrastructure providers, the report finds that optimism remains strong. Around 83% of respondents expressed confidence in the sector’s short-term outlook over the next 12 to 24 months. This optimism persists even as firms face challenges such as trade barriers, cyber threats, and evolving compliance requirements.

One of the most significant findings is the widespread impact of tariffs and geopolitical pressures. Nearly 89% of firms reported that trade barriers have affected their operations, while many indicated that global tensions are influencing investment allocation and capital flows. In response, organizations are redesigning their operating models to enhance resilience and ensure long-term stability.

Technology, particularly artificial intelligence, continues to play a central role in this transformation. The report shows that 66% of firms are actively investing in AI technologies, while 58% are integrating these tools into daily operations through workforce training. This reflects a broader shift toward data-driven decision-making and automation, aimed at improving efficiency and customer experience. At the same time, cybersecurity remains a top priority as firms seek to safeguard increasingly digital operations.

Regulatory compliance has emerged as a growing concern. Nearly half of the respondents identified compliance challenges as a major business impact, a sharp increase compared to previous years. Firms are increasingly embedding governance and regulatory considerations into their strategic planning to manage risk more effectively.

Sustainability, while still relevant, has seen shifting priorities. Although fewer firms view it as a major immediate concern, a significant majority reported increased investment in sustainability initiatives. However, keeping pace with rapidly changing sustainability regulations remains a key challenge for many organizations.

Commenting on the findings, Isabelle Ord, Global Co-Chair of the Financial Services sector at DLA Piper, noted that firms are reassessing their portfolios to align asset value with risk and strengthen resilience. Tony Katz, also Global Co-Chair, emphasized the importance of embedding regulatory change into long-term strategy. Mark Dwyer highlighted the sector’s ability to adapt to multiple converging challenges, while Margo Tank pointed to the development of flexible operating models that can sustain growth amid uncertainty.

Overall, the report underscores a sector that is evolving rapidly, leveraging technology and strategic planning to navigate disruption. While challenges remain, financial services firms are demonstrating strong adaptability and a clear focus on sustainable, long-term growth.