Banking on Banks Report 2026: Financial services in an age of uncertainty

Europe’s financial services sector is operating in one of the most challenging and volatile environments in recent memory.

In 2026 so far, consumers and businesses have been on the back foot, scaling back spending and revising plans against a backdrop they expect to worsen before it improves.

Persistent inflation, regional conflicts, geopolitical instability, and the rapid evolution of fraud are bearing down simultaneously on consumers and businesses – and the institutions serving them are under growing pressure to respond.

Rising financial concerns in Ireland and across Europe

Last year three-quarters (74%) of Europeans said they had financial worries about the coming 12 months and this year the figure has risen again to nearly eight in ten (78%), approaching levels closer to the end of the pandemic.

More than a third of consumers (35%) expect to have less money left at the end of each month over the next year, rising to 42% in Ireland.

Spending pressure is rising, especially in the UK

Half (50%) of European consumers say they now plan to reduce their spending over the next 12 months, with those in Ireland (58%), Italy (56%) and the UK (55%) the most likely to cut back, while just 12% have ambitions to increase their spending.

Confidence in financial providers remains under pressure

While trust in financial providers broadly remains, confidence in delivery is fragile amidst ongoing economic shocks.

More than half (57%) of consumers believe that financial providers have a duty to offer affordable products during times of hardship, yet only 29% think providers are doing enough to support financial wellbeing during these uncertain times.

The growing challenge for financial providers

Financial providers now need to recognise these external factors not as background noise, but as the central challenge consumers and businesses expect them to help navigate.

In Ireland, 70% wish they could access financial services for their business as easily as in their personal lives, while 61% say it is harder to meet eligibility requirements when applying for finance than for personal finance.