- Two-thirds of banking CEOs are confident in the growth prospects of the banking and capital markets industry over the next three years.
- 81 percent report generative AI (Gen AI) as a top investment priority for their organization.
- Talent remains a key concern in driving technology-enabled business transformation.
- 81 percent reported cybercrime/cyber security as the top factor likely to have a negative impact on organizational growth over the next three years.
- 58 percent anticipate receiving a significant rate of return on their ESG investments within three to five years.
CEOs in the banking sector are confident about their company’s growth potential and are betting on large investments in emerging technology, a survey of 120 sector leaders from across the world finds.
The KPMG CEO Outlook, now in its tenth year globally, revealed that 66 percent of banking CEOs are confident in the growth prospects of the banking and capital markets industry over the next three years. Eighty-one percent report Gen AI as a top investment priority for their organization, despite ongoing economic uncertainty, as they see emerging technology as a key component in business transformation.
However, talent and cyber security remain key concerns for industry leaders as the industry attempts to attract and retain professionals with the skills required to support technology-enabled transformation. This concern is exacerbated against a backdrop of an uncertain geopolitical and macroeconomic environment. Eighty-one percent reported cybercrime/cyber security as the top factor likely to have a negative impact on organizational growth over the next three years.
Sustainability also remains high on the agenda as CEOs continue to view ESG as an important driver of growth that will shape banks’ behaviors and investments. Fifty-eight percent of respondents anticipate receiving a significant rate of return on their ESG investments within three to five years.
Francisco Uria, Global Head of Banking and Capital Markets at KPMG International, states “It’s reassuring to see confidence from industry leaders in the outlook of the global banking sector, as well as their willingness to develop and adopt emerging technology. CEOs appear very focused on accelerating their digital transformation projects to support their anticipated growth. Yet, as with many other sectors, the skills gap required in achieving full business transformation potential is evident. Banks are having to compete for new skills and capabilities in what is currently a challenging marketplace. CEOs who set bold strategies to attract and retain talent and make their plans a reality, can deliver sustainable, long-term growth.”
Christopher Saunders, partner and Head of Consulting at KPMG in Thailand, also states “While economic headwinds in Thailand may impact growth of the Thai banking sector in the short term, there are reasons to be optimistic in the longer-term outlook – with opportunities to leverage strong balance sheets for further regional expansion, growth in demand for wealth management services as the ageing society shifts customer behaviors towards longer-term financial planning, lending to underbanked SME and Consumer segments utilizing more advanced underwriting capabilities with alternative data sources, not to mention financing the “green transition”.
In terms of risk agenda, we continue to see significant investment in customer-centric digital transformation through enhancement of core banking platform and data capabilities. This is increasingly being recognized by banks’ customers, with our 2024 Customer Experience Excellence survey featuring banks heavily at the top. An effective AI strategy is key to continued success here, but with a “human-first” approach to ensure the future workforce is shaped and developed in a way that compliments the significant investments required. There are risk implications here and a related priority is continued investment in cyber transformation in areas such as identity access management to ensure banks continue to be trusted.”
