KPMG global tech report: Financial services insights

As financial services organisations contend with evolving risks and demands in a cost-pressured environment, companies with a competitive edge in the sector are those who can deploy digital transformation tactics to bring enterprise-wide value. But are financial services firms ready to unlock unprecedented growth through digital innovation?

This report draws upon the perspectives from 612 leaders across the financial services industry. While it reveals that the financial services sector is most likely to generate profit from its AI investments, there is also a growing need to move beyond siloed, short-sighted tactics to build a business fit for the future.

Persistently high inflation, geopolitical pressures, regulatory challenges, and slow global economic growth are combining to challenge businesses across financial services. Interest rate volatility is dampening consumer spend and asset performance, while compliance and operational costs are steadily increasing, forcing executives to revisit growth strategies. At the same time, organisations across financial services are coming under pressure both to generate value and to operate within tighter margins.

The sector’s inherent exposure to elevated risk and regulatory challenges has driven a need for innovation to manage these demands. While this has brought progress, the evolving risks and responsibilities continue to weigh heavily on tech decision-makers in the sector.

The rise of generative AI (Gen AI) is set to revolutionise financial services, enabling companies to automate complex tasks and enhance customer experiences in unprecedented ways. Financial services is the sector most likely to generate profit from its AI investments, but many organisations are still encountering problems when trying to implement AI across the business in an integrated way.

Companies are increasingly looking to modernise their systems to improve resilience and remove unnecessary complexity. Across the sector, there has been an uptick in the implementation of cloud-based platforms that can help simplify digital infrastructures, with an impressive 82% of organisations prioritising investment in XaaS in 2024.

This report is intended for CEOs, CTOs, and senior executives in the financial services industry who are looking to harness technology to help fuel operational efficiency and growth. From mitigating risks in technology integration to securing operations against escalating cyber threats, we explore strategies tailored to meet the sector’s unique challenges.