Simon Crabb
Managing Director
WELCOME
Welcome to the Lutine Bell Annual Report.
Since our last report, there have been plenty of changes and there’s a fair chance that the momentum isn’t going to slow!
Despite the flood of regulatory amendments, political about-turns and general feeling of adjustment in the, well, world now, one thing remains constant - the dedication and passion we see every day from those on the front line of the UK financial services.
Without the commitment of those implementing regulations, navigating change and embracing chaos, our industry would look like a very different place. We have enjoyed celebrating some of the sector’s heroes this year via our popular ‘Day in the Life’ project (with plenty more to come in 2025!) and of course, connected with over 1450 industry leaders through our ever-popular Events Charter.
THE TIMES THEY ARE A-CHANGING
Anyone choosing to ignore the march of AI in 2025 could be accused of burying their head in the sand. It may not be something you’re keen to address, but it’s not looking like the rise of the machine is going anywhere. Pushing back against technology is unlikely to get you very far in the long run, embracing the change and working out how tech can work for you and your organisation may well be a more effective option.
Last year we made the change from a paper copy of this report (with all the associated printing, posting and logistical pain!) to this slicker, easier-to-manage digital version. Whilst this digital switch is a drop in the ocean compared to the changes happening within the FS sector, it goes some way to showing how a slight change can make a huge difference – after all, would you be reading these words if they were delivered via a paper document?
It cannot be denied that some AI programmes have more than a whiff of ‘I, Robot’ about them, and for our colleagues in the Risk Management, Compliance and Legal sectors, there is certainly plenty of work to be done in safeguarding the nation’s financial services. However, times are a-changing, and it feels like a failure to move with them could leave you exposed to being swept away with the paper-filled past.
CHALLENGES, RISKS & OPPORTUNITIES
It’s not just AI that is moulding the future of the sector as we know it. Last year, along with digitalising, we made the decision to turn our Annual Report into a bit of a political prediction paper. With the biggest percentage of the world’s population ever taking to the polls in 2024, it would have been madness to ignore the fact that the political landscape was shifting, bringing with it a raft of challenges, risks and opportunities.
Don’t panic, we’ve not shifted into an annual FS-specific New Statesman, but we can’t discuss 2025 without touching on the impact of the changes in Downing Street and Washington, specifically.
As I write this, Donald Trump is certainly making a splash in his first few months in the White House. According to Downing Street, the UK Government were impressed with how the President ‘cracked on’ with making changes as soon as he was back behind the Oval Office desk, and it seemed President Trump was initially feeling warm towards the UK during the start of his second term in office – a potentially positive start for international relations. As the Trump-Tariffs shake world financial markets, it certainly seems that the friendly relationships may have been kind to the UK, initially at least.
Regardless of the seemingly positive personal connection between the two leaders, the President’s inauguration-day changes are likely to have an ongoing impact as we move through his term. His blanket scrapping of all DEI and ESG projects within all federal departments in order to clear the way for fiscal growth was well received by some, who agree with the belief that regulation is paralysing commercial progress.
Although it is fair to say that these thoughts are far from unanimously shared across the US - and the turbulent divisions of a nation's beliefs are extending to home shores, too.
The UK government’s plan to support the financial services sector in order to promote growth within the wider economy is more tentative than that of the Trump Administration, but the principle of deregulation to boost economy is arguably much the same.
With numerous planned new regulations coming down the track in 2025, many touching on ESG and DEI, it’s likely that UK organisations will be keeping a close eye on President Trump’s bold moves impact the US and its economy, before committing to any new strategies. The PRA have chosen to kick the implementation of Basel 3.1 down the road for a further year until January 2027, admitting they want to see how things play out in America before they implement anything in the UK, after all - and if the regulators are peeking over the proverbial fence, it would be remiss of businesses not to do the same.
Whilst controversial, it cannot be denied that Donald Trump entered the White House with a burst of 'can-do-energy', and highlighted opportunities amongst the risks and challenges - although how viable they are remains to be seen! In 2025, we may see some of the sector having to follow the President’s lead to a certain extent, but with his initial burst of positivity, could it be that this may not turn out to be an entirely bad thing (within reason!)?
BACK TO BASICS - BRAVE OR STUPID?
With the landscape changing, and reliable horizon scanning proving somewhat of a challenge, we decided - along with many of our colleagues within financial services – that 2025 was a good year to go back to basics.
For us, that was the expansion of our ever-popular Events Charter, with the development of a new suite of Non-Executive Director events, and an increase in our in-person events.
Online networking was invaluable during the pandemic, but with so much change afoot and technology creeping into every other element of our lives, we have found that getting together and really engaging with each other has become something that is truly valued, over and above any number of online connections. Over 65% of our events over the past 12 months were in-person, and we were delighted to connect with, and facilitate the connections, of over 1440 senior GRC professionals.
This shift in preference may well coincide with lots of organisations choosing to go back to an office-based working pattern. People are having to shake off the working-from-home malaise that many of us found ourselves falling into, and a return to the office - whilst a shock – has undoubtedly reinvigorated the sector (once we all got used to the commute again, that is).
We will continue to bring together the leading names from the GRC space, providing an opportunity to connect with peers, debate hot topics and develop new ideas. As the year develops, there will be plenty to discuss, and I look forward to meeting with many of you and discussing the changes as they happen!