As one of the UK’s largest integrated financial services organisations, we wanted to understand the scale of opportunity that comes from true financial empowerment, enabled by digital transformation. So we challenged Professor John Gathergood, Professor of Financial Economics at the University of Nottingham, to explore a specific question: if the benefits of digitally-enabled financial empowerment were realised at scale across the UK population, what could be the total value to the nation over the next decade?
His answer is a striking one. Drawing on published academic research, nationally representative survey data and established economic modelling, Professor Gathergood examines seven areas of everyday personal finance where the evidence is robust and the technology is real or near-term. They are non-exhaustive, provider agnostic and focus on a selection of the most evidence-led ways that digital tools, data and guidance can reduce friction, improve understanding and support better decision making over time.
“Professor John Gathergood’s modelling suggests that accelerating the digital transformation of financial services could unlock up to £100 billion of economic value over the next decade – equivalent to around £3,500 per household.”
The research is a high-level projection, and a rigorous attempt to quantify the opportunity in areas where academic evidence and real-world data exists to guide us. The projections are deliberately conservative, the seven areas of focus are independently modelled, and the assumptions are transparent. As with any forward looking analysis, the actual outcomes will depend on the pace of digital adoption, the evolution of the regulatory environment, and the choices that consumers, providers and policymakers make in the years ahead.
A significant opportunity
This report is a scouting mission – a measure of the scale of what becomes possible when digital support reaches everyone who needs it, and a reminder of what is at stake if we get this right. It answers our question with the best available evidence – giving us a clearer sense of what becomes possible as rapidly evolving technology makes digital tools smarter, more personalised and more widely used in daily life.
Access to the right tools, insights and timely support can make people more likely to act – supporting longer‑term planning, more confident debt management, and the development of financial resilience for households and communities, protecting their families and strengthening their communities.
But wide-reaching transformation is never a simple thing. We need to bring together digital innovation, transformative technologies and skilled people to meet the needs of customers more effectively.
Enabling financial empowerment
At Lloyds Banking Group, we recognise the scale of this opportunity. And we are committed to using that opportunity – and the responsibility that comes with it – to enable financial empowerment for our customers.
Any references in this report to Lloyds Banking Group products or services are illustrative only, are provided for context, and do not constitute financial advice or a recommendation.
As a leader in digital transformation, we’re already shaping the future of finance and supporting people to achieve their financial goals, though simple digital tools, personalised insights and timely guidance embedded in everyday banking. For example, our Ready-Made Investments make it simple and easy to start investing, empowering over 84,000 customers to begin their investment journey since the launch. Similarly, we’ve opened more than 7,000 Ready-Made Pensions accounts, helping customers manage their savings and plan for retirement.
We’re also strengthening customers’ credit health and helping them get better access to borrowing. More than 500,000 customers improved their credit scores through our Your Credit Score tool each quarter last year, building their resilience and confidence along the way, while our Benefits Calculator highlighted £93.3 million of support payable to customers.
We launched our agentic AI financial assistant earlier this year, which will eventually enable 21 million mobile app customers to manage their money more effectively, providing tailored insight on spending, budgeting, savings and investments – all within a secure banking environment.
Helping people to thrive
We want everyone to have the tools, confidence and access to thrive in a digital-first economy, so we’ve helped more than a million people since 2023 build their digital skills and take control of their financial futures through our Lloyds Bank Academy, Digital Helpline and financial education programmes.
But there’s more to be done. Professor Gathergood’s research points to what is possible for the financial services sector as a whole, as regulation, data and technology evolve. Realising the potential value of digitally enabled financial empowerment will require a collective effort – from providers, regulators, policymakers, technology partners and the third sector – and a shared commitment to trust, inclusion and confidence.
When people feel empowered, they are more likely to move beyond day‑to‑day financial management – with greater ability to plan, adapt and invest in their futures. When these experiences of empowerment are repeated, day after day, across millions of lives, their potential impact reaches far beyond individual households.
This is how we build a more resilient and inclusive economy – Helping Britain Prosper.
