2024 U.S. Banking Industry Outlook Survey
Future-proofing banking: The enterprise transformation imperative
"When in doubt, choose change"
U.S. banks face a difficult growth environment due to compounding macro- and microeconomic headwinds, geopolitical instability, intensifying regulatory scrutiny, and other near-term challenges putting pressures on earnings. At this critical juncture, the KPMG national banking practice sees significant opportunity for banks to choose change—embark on an accelerated journey of enterprise-wide transformation.
The U.S. Banking Industry Outlook Survey captures the challenges and opportunities faced by the banking sector amidst economic, regulatory, and technological disruptions, from 200 banking executives surveyed on their views on current industry trends and topics in March 2024.
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Explore the 2024 Banking Industry Survey results
Discover insights on the trends that are shaping the industry's present and future and key takeaways banking executives should consider.
Download PDFKey Insights
2/3
are confident in their banks’ growth prospects
59%
of respondents believe profitability will grow inorganically
50%
are making significant strategic adjustments in response to geopolitical uncertainty
52%
of CEOs respondents believe profitability will grow through cost transformation
65%
say GenAI is an integral part of their institution’s long-term vision and strategy
80%
think regulatory supervision and enforcement in the area of cyber risk will increase
The path to growth for banks is accelerating their enterprise transformation to be the bank of the future. Modern technology platforms are the foundation, allowing banks to leverage the latest technologies to enhance operational efficiency, customer retention and attraction, and resilience through the next wave of challenges.
Peter Torrente
US Sector Leader, Banking and Capital Markets, KPMG LLP
Growth expected despite compound volatility
The industry has been facing a confluence of pressure on earnings: high interest rates, low stock prices, credit uncertainty, a slow M&A market, geopolitical conflicts disrupting world markets, unprecedented regulatory scrutiny, and impending regulatory uncertainty following the U.S. presidential election.
Yet, there are signs of a brighter future ahead, especially among larger, growing banking institutions. Our survey finds bank executives, as a whole, relatively confident in the growth outlook of the banking sector.
How confident are you in the growth prospects of your organization over the coming year?
Economic and geopolitical risks persist
Which of the following risks poses the greatest threat to your bank's growth over the next 3 years? (select top 3)
Refining the multichannel customer experience
What digital channels are being prioritized for investment in 2024? (select all that apply)
Establishing security, privacy and trust
Unlocking the power of GenAI
The banking sector recognizes the extraordinary promise of GenAI in shaping their future strategies and remaining competitive. As a general trend, banks have stopped seeing GenAI a proof of concept and started seeing it as a capability.
Many banks are actively exploring and implementing GenAI for a diverse range of use cases, with some of the most common applications directly correlated to current top agenda items for industry—cybersecurity (67 percent), fraud (51 percent) and compliance and risk (41 percent). As budgets and resources to fight cybercrime, protect data and customers, and comply with intensifying regulatory requirements have skyrocketed, banks executives are looking to GenAI as a potential solution.
Which active use cases for Gen AI does your organization have in pilot or production phases?
Steps you can take to establish a standout ESG M&A due diligence program:
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Modernizing the payments ecosystem
How does your organization generally view the ISO 20022 Compliance Mandate?
Regulatory intensity dominates resources and attention
How will regulatory supervision and enforcement activity change in the following areas over the next 12 months?
How KPMG can help
Only future-ready banks will thrive in 2024 and beyond. The KPMG national banking practice sees today’s environment of converging economic and industry challenges and disruptions as a catalyst for change—a not-to-be-missed chance to take advantage of the current and emerging opportunities that surround us.
KPMG can help banks navigate the evolving banking landscape, with deep industry expertise, fresh thinking, and leading-edge tools and methodologies.
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