A recent HLB Survey of Business Leaders 2025 reveals a financial sector facing both confidence and caution with both business and global growth. Whilst business leaders are optimistic about their own company growth, with 88% confident in their prospects, they remain alert to risks such as economic uncertainty (78%), cybersecurity threats (74%), and regulatory change (64%).
A key driver of growth moving forward is likely to be automation. One key takeaway from the HLB survey was that business leaders feel that they need to transform their customer experience if they really want to drive a competitive advantage and appear resilient.
Insight on HLB Survey of Business Leaders 2025
To counter these challenges, business leaders are looking to prioritise three key areas:
- Operational efficiency: 69% say that they want to improve their operational efficiency, with 39% admitting they are currently weak in this area.
- Technology adoption: 83% cite AI as the most important tool for the next five years, followed by cloud computing (63%) and robotics process automation (over 33%).
- People investment: One-third believe that they need to work on talent acquisition, while 52% plan to increase resources for upskilling and reskilling, and 45% want to improve performance management.
These findings highlight a sector actively rethinking how it operates, and technology, particularly AI, is at the heart of this transformation. Many leaders (around 65%) see AI as a way to streamline compliance, automate risk management, enhance customer analytics and improve profitability. Yet, adopting these innovations often requires additional development work, adaptation of systems, and recruitment of specialist staff.
Where R&D comes in
While many firms are excited about new technologies, introducing AI, cloud computing or automation into existing systems for a company’s operations is rarely a straightforward exercise. To tailor solutions to their unique processes, organisations often need to develop, test and refine bespoke applications. Where those activities seek innovation within their design, there is a strong possibility that costs invested in this development may qualify for R&D tax reliefs.
Some examples of these activities highlighted through the HLB survey are as follows:
- Improving efficiency through AI: 65% of leaders plan to streamline processes with AI. The development of new algorithms or creating automated compliance checks can potentially involve eligible R&D activities.
- Risk management automation: 70% of leaders intend to use AI for compliance and risk management. Where companies require advanced development or adaptation of software to meet regulatory challenges, this too may fall within the scope of R&D tax relief.
- Recruiting the right people: With one-third of the HLB survey citing talent acquisition as a weakness, many firms will bring in new technical expertise. Salary costs for staff directly engaged in qualifying R&D, or recruitment specialists to obtain those new crucial employees, can also form part of the qualifying expenditure for R&D tax reliefs.
All of the examples highlighted above could significantly reduce a company’s tax liability, allowing for further liquidity for future investments as global growth continues and ensures that companies can keep up with the forever changing landscape within the Financial Services sector.
Why this matters now
The survey shows that high-performing companies are already making changes within their organisations. Those with profit margins increasing by more than 5% year-on-year are more likely to invest heavily in automation and digitalisation, areas where R&D tax reliefs can apply. However, there are time limits and legislative requirements that need to be adhered to in order to access these R&D tax reliefs.
By recognising the link between technology adoption and R&D as well as acting in a timely manner, financial services leaders can turn growth risks into tax-efficient opportunities.
How can Menzies help
At Menzies, we understand the Financial Services sector’s challenges and the opportunities that are also present. Our R&D tax specialists can help you identify eligible R&D activities, maximise claims, and ensure companies capture the full value of their investment in both innovation and people.
Unsure of where to start or how R&D tax reliefs may benefit your company moving forward?
Menzies can also provide tax planning in terms of understanding your approach to an upcoming or proposed project, highlighting the key areas for relief. This will allow business leaders to proceed with confidence that they are proceeding on the right foot with their development and can comply with the tax legislation prospectively.
If you would like to find out more, or explore whether a project may qualify, please get in touch with our expert team.
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