Banking Execs Report Fraud and Security Concerns Prompting Immediate Investments; AI Remains Priority: KPMG Study

• When asked which investments are being prioritized at their bank over the next year, 89% of banking executives cited security and fraud prevention compared to 33% who said enterprise enablement of GenAI tools.  
• Conversely, when asked about their priorities in the next three years those figures are inverted, with only 12% citing security and fraud protection as a priority compared to 67% who plan to prioritize enterprise enablement of Gen AI tools.  
• Online banking, mobile banking as well as chatbots and virtual assistants are the top three digital channel investment areas of focus for this year.
• When it comes to utilizing GenAI or AI pilots to facilitate implementation of their investment priorities this year, 78% said they are already using GenAI or AI pilots for security and fraud prevention while 77% said they are considering GenAI or AI for digital customer experience enhancement.

• 89% of banking executives indicated they are increasing their budget to address cyber risk.
• 75% said they have seen an increase in the number of cybersecurity attacks on their bank in the last year.
• When asked to name the top challenges when deploying Gen AI across the enterprise, 61% cited security and compliance challenges. 

"Effective AI security measures are essential to protect against adversarial threats and maintain trust in AI-driven processes,” said Matt Miller, Principal of Cybersecurity Services at KPMG U.S.  “By prioritizing AI security, organizations can safeguard their innovations and stay ahead in a competitive market.” 

• When asked what key drivers are contributing to modernizing their banks payment platforms and systems, banking executives identified regulatory requirements (83%) and operational efficiency (80%).
• Front-end digital channels and payments AI solutions are the two top payments modernization initiatives banks are undertaking in the coming year.