Organisational culture in UK finance at a crossroads: empirical typology and policy implications

Abstract The study is one of the first in its field to be grounded in extensive, original qualitative data on the lived experiences of senior managers in financial firms. Its principal aim is to construct a comprehensive, empirically-based typology of culture in finance, drawing on findings from 29 semi-structured interviews with current and former senior managers in UK financial firms and regulatory personnel. The study employs a rigorous participant selection and thematic analysis process that reflects the diverse array of financial firms, sectors, roles and perspectives on culture. It does so by applying appropriate theoretical frameworks on organisational culture to unearth the nuances and typology of culture in the UK finance industry. Our findings indicate that financial firms are in a state of transition between two distinct types of culture, from an old and heavily criticised archetype (which still holds sway) towards a not yet fully realised vision of a new transformed culture. Beyond its theoretical interest, our analysis reveals ways to improve culture in finance and provides recommendations for the development of financial regulation and broader policymaking, aiming for a whole-hearted shift from principles-based regulation to outcomes-based regulation.