By most accounts, 2014 was a good year for financial services in the UK. The sector is certainly in the best shape it has been since the beginning of the financial crisis six years ago. Many of its organisations are back in growth mode, with a greater focus on customer needs rather than managing the very broad impact of the post-crisis environment.

All of that bodes well for the next 11 months. In 2015, we should see firms building on the momentum they have gained over the last year. Here are my predictions of how that will look:

Asset managers

The asset management sector in Scotland is well placed to build on progress made to date.  Two notable deals took place in 2014 with the completion of Aberdeen Asset Management's acquisition of Scottish Widows Investment Partnership and Standard Life Investments taking over Ignis. 

"Challenger" banks

The so-called "challenger" banks, such as Sainsbury's Bank, Tesco Bank, TSB, and Virgin have an optimistic outlook for the year ahead. These institutions have increasingly well-established operations and an increasing breadth of products. Growing their customer and asset bases, while offering clients something different compared with the larger players, will remain a top priority in 2015 and beyond.

The established players 

For the established banks, such as Lloyds Banking Group and RBS, the progress made on addressing asset quality, disposing of 'non-core' businesses, and simplifying operations has been significant. That being said, it's likely that there will still be some residual impact felt from the legacy of the crisis.  Clearly the material challenge for the big UK players is ring fencing and resolution. This will provide structural, governance, and operational considerations, as well as significant planning and implementation costs.

Life and pensions

Few sectors saw more change than life and pensions in 2014. There were unexpected changes to pensions legislation announced in March's Budget, which has driven real operational pressures as preparations are made for the introduction of the more flexible pensions regime from April 2015. The sector is also waiting for more details from the Financial Conduct Authority (FCA) on the scope of the review into previous practices, also announced back in March.

Let's get digital

For all financial services institutions, digitisation is allowing customers to interact with firms on their own terms. In retail markets, digital adoption is expected to accelerate in 2015 which will impact strategy and investment decisions for everyone.  Unfortunately, these technological advances come with risks. There has been a rapid increase in the volume and complexity of cyber-crime, the prevention of which is now a preoccupation for businesses, regulators, and governments.

Permeating all of this will be trust and culture – key drivers for the sustainable change required to convince customers, the markets, and regulators that the financial services sector has emerged from the shadows of the past. That will require resilient leadership over the long term.

Nevertheless, challenges remain. Europe's already fragile recovery has been rocked by a change in government in Greece, while there are ongoing conflicts in the Middle East and Ukraine.  The fall in the oil price is also prompting a significant reappraisal of investment plans across the sector.  Closer to home, there are a number of planned regulatory changes on the horizon and the small matter of a UK General Election coming up in May. Whatever happens, the rest of 2015 will be far from dull.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.