KPMG 2023 Banking CEO Outlook

Banking leaders maintain a positive outlook for the next three years with an underlying confidence in their growth momentum for their organisation and an emphasis on digitalisation and talent retention. With a strong appetite for M&A, if the right conditions arise, most are prioritising expansion of their workforce skills and capabilities. And, in an admittedly more complex operating environment, CEOs are favoring a more collaborative and shared approach to leadership.

With most stakeholders now expecting companies to have an ESG strategy embedded into their business models, bank CEOs appreciate the importance of investing to achieve their stated ESG and net-zero commitments, particularly in the areas of climate change and Diversity & Inclusion. Many are investing now to deeply hard-wire ESG across their business, to go beyond compliance demands and reap a longer-term return on investment.

As banking leaders recognise the need to welcome more diverse talent, develop and retain specialised skills, and model values-based work cultures, their acceptance of hybrid work models is evolving, although they do want to encourage greater in-office work to help foster team cultures, communication and collaboration.

Survey participants expressed a strong enthusiasm for the benefits of generative AI and are prioritising investment in these technologies. While they are highly attuned to the challenges that arise in tandem with technology adoption, including the increased risk and frequency of harmful cyber-attacks, they expect a clear return on these investments and recognise the need to fortify their institutional safeguards.