- 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 the 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 by 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.
“Due to the surge in digitalization, cybercrime poses a major threat to banks, resulting in substantial financial losses due to rising fraudulent transactions” notes Gabriel Mihai Tănase, Partner responsible for Cyber Security services at KPMG in Romania.
While 53 percent of CEOs agree that they are well-prepared to handle cyber threats in the organization, their preparedness has declined by one pp since 2023. Hence, 3 percent of the CEOs declare they are underprepared for potential cyber insecurity, marking an 18 pp decline since 2023.
“In times when AI is on the agenda of most CEOs and executives all around the world, building a cybersecurity-focused culture is central to how they integrate AI into their organization” highlights Gheorghe Vlad, Director-Cyber Security at KPMG in Romania. “Our study shows that 72 percent of CEOs are confident they can protect their operations and intellectual property from AI threats by increasing investment in cybersecurity” he concludes.
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.
