UK banks, financial services companies and regulators must work closely together to create meaningful change in the financial sector, according to Jayne Opperman, chief executive consumer relationships at Lloyds Banking Group.

Speaking during a panel discussion at the UK Finance Digital Innovation Summit, she noted that the UK is currently on its third attempt to launch a digital ID system.

“I’m embarrassed about where we are globally, given the capabilities we possess,” she said. “Focusing solely on growth and innovation for innovation’s sake doesn’t necessarily deliver the desired outcomes.”

Opperman emphasised that organisations should prioritise customer needs by leveraging data and suggested co-designing products with customers.

“‘Build it and they will come’ has never worked. Over my 25-year career, I’ve seen significant sums wasted on this approach,” she added. “In today’s fast-moving environment, where speed and agility are crucial, everything must be tied back to the customer.”

David Geale, director of the Payment Systems Regulator (PSR) and executive director of payments and digital finance at the FCA, agreed, stating that customers value simplicity and efficiency.

He added that financial services should operate seamlessly, becoming almost invisible to customers.

“We’ve moved away from allowing businesses and individuals to take the risks we once did, and this lies at the core of our challenges,” Geale said. “By enabling commercial risk-taking, we can drive better outcomes for customers.

“Some firms may fail in the process, but that’s acceptable because, ultimately, customers will benefit the most.”

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