Banking sector CEOs across the globe are betting on emerging technology as a key component in business transformation, according to the KPMG 2024 Banking CEO Outlook.
Around 66% of banking CEOs are confident in the growth prospects of the banking and capital markets industry over the next three years. A strong 81% say generative AI is a top investment priority for their organisation, despite ongoing economic uncertainty.
Majority of banking CEOs exhibit a spirit of readiness to embrace challenges. For example, 76% say that experimentation is key to unlocking Gen AI’s potential and they encourage all employees to take part. And 66% say their organisation is equipped to upskill employees to leverage the benefits of GenAI
However, talent and cyber security remain key concerns for industry leaders as the sector 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. According to the survey, 81% reported cybercrime/cyber security as the top factor likely to have a negative impact on organisational 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’ behaviours and investments. Around 58% of respondents anticipate receiving a significant rate of return on their ESG investments within three to five years.
Hemant Jhajhria, Partner and Head of Consulting, KPMG in India said, “It’s encouraging to see confidence from industry leaders in the outlook of the global banking sector, as well as their proactive and positive inclination towards adopting emerging technologies like GenAI. Banking CEOs seem to be very focused on accelerating their digital transformation, adopting GenAI use cases at scale and prioritizing cyber security and ESG. However, the skills gap required across each of these areas is evident.”