Most banking CEOs show a sense of readiness to take on challenges.
Banking sector CEOs are confident about their company’s growth potential and are betting big on investing in emerging technologies, a survey of 120 banking sector leaders worldwide has found.
Confidence in the growth of the industry
The KPMG CEO Outlook, now in its tenth year globally, reveals that 66 percent of banking CEOs are confident in the growth potential of the banking and capital markets industry over the next three years.
Additionally, 81 percent report Gen AI as a top investment priority for their organizations, despite ongoing economic uncertainty, as they see emerging technology as a key component in business transformation.
Willingness to accept challenges
Most banking CEOs show a sense of readiness to take on challenges. For example, 76 percent say experimentation is key to unlocking the potential of Gen AI and they encourage all employees to participate. Moreover, 66 percent believe their organization is equipped to upskill employees to take advantage of the benefits of general AI.
Talent and cyber security concerns
However, talent and cybersecurity remain key concerns for industry leaders as the industry tries to attract and retain professionals with the skills needed to support technology-enabled change. This concern is exacerbated by the uncertain geopolitical and macroeconomic environment. Notably, 81 percent cited cybercrime/cybersecurity as the top factor likely to negatively impact organizational growth over the next three years.
Focus on sustainability and ESG investments
Sustainability remains high on the agenda as CEOs continue to see ESG as an important driver of growth that will shape banks’ behavior and investments. 58 percent of respondents expect to see a significant return on their ESG investments within three to five years.
Insights from industry leaders
Hemant Zazaria, Partner and Head of Consulting, KPMG in India said:
“It is encouraging to see the confidence of industry leaders in the outlook of the global banking sector as well as their active and positive attitude towards adopting emerging technologies like Gen AI. Banking CEOs are highly focused on accelerating their digital transformation, adopting general AI use cases at scale, and prioritizing cybersecurity and ESG.”
“However, the skill gap required in each of these areas is clear. Banks realize that they are now competing for new skills and capabilities in what is currently a challenging market not only globally but also in India. We believe that CEOs who prioritize A bold strategy sets out to focus investment and attract the right talent in areas they can drive sustainable, long-term growth.”
Survey method
The KPMG 2024 Banking CEO Outlook, part of the 10th edition of the KPMG 2024 CEO Outlook, is compiled from the views of 120 banking and capital markets chief executives. The survey was conducted between 25 July and 29 August 2024, providing unique insight into CEO mindsets, strategies and planning strategies.
Geographical and industry representation
The survey included CEOs from 11 major markets (Australia, Canada, China, France, Germany, India, Italy, Japan, Spain, UK and US) and 11 major industry sectors, including banking.
In the banking sector survey, the two largest sub-sectors were commercial banking (27 percent) and capital markets/investment banking (22 percent). The best-represented countries based on organizational headquarters are the US, followed by India, the UK, China, Canada and Germany.