Banking CEOs confident about growth, focused on Gen AI and sustainability, KPMG survey – ETCFO-OxBig News Network

A survey of 120 CEOs from the global banking sector reveals strong confidence in the growth potential of the industry, with leaders prioritizing investments in emerging technologies, especially Generative AI (Gen AI), despite ongoing economic uncertainty.

The KPMG CEO Outlook, marking its tenth year globally, found that 66 percent of banking CEOs are optimistic about the growth prospects for the banking and capital markets industry over the next three years. A significant 81 percent of respondents identified Gen AI as a key investment area, seeing it as essential to driving business transformation.

In addition to their focus on technology, a majority of CEOs are embracing experimentation as a strategy for innovation. Seventy-six percent of banking leaders believe that experimenting with new technologies is crucial to unlocking Gen AI’s potential, and 66 percent report that their organizations are well-equipped to upskill employees to take full advantage of the technology.

Despite the positive outlook, industry leaders remain concerned about talent shortages and cybersecurity threats. Eighty-one percent of CEOs flagged cybercrime and cybersecurity risks as the top factors that could hinder organizational growth over the next three years. These concerns are heightened by the current geopolitical and macroeconomic instability, which further complicates efforts to attract and retain skilled professionals needed for technology-driven transformation.

Focus on sustainability

Sustainability continues to be a significant priority for banking CEOs, with many viewing Environmental, Social, and Governance (ESG) factors as key growth drivers. Fifty-eight percent of those surveyed expect substantial returns on their ESG investments within three to five years.

Hemant Jhajhria, Partner and Head of Consulting, KPMG in India said: “It’s encouraging to see confidence from industry leaders in the outlook of the global banking sector, as well as their proactive and positive inclination towards adopting emerging technologies like Gen AI. Banking CEOs seem to be very focused on accelerating their digital transformation, adopting Gen AI use cases at scale and prioritizing cyber security and ESG. However, the skills gap required across each of these areas is evident.

Banks understand that they are now competing for new skills and capabilities in what is currently a challenging marketplace not just globally but here in India as well. We believe, CEOs who set bold strategies to make focused investments in priority areas and to attract matching talent, can deliver sustainable, long-term growth.”

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