Initiatives are maturing from pilots and
proofs of concept to targeted, enterprise-wide strategies
ARMONK,
N.Y., Feb. 5, 2025 /PRNewswire/ -- IBM (NYSE:
IBM) today released its annual expectations for technology and
transformation in the global financial services industry in the
year ahead in the IBM Institute for Business Value 2025 Outlook for
Banking and Financial Markets.
Key Insights
- Gen AI adoption is set to soar. Only 8% of banks were
developing generative AI systematically in 2024, and 78% had a
tactical approach. As banks move from pilots to execution, more are
redefining their strategic approach to service expansion,
including agentic AI.
- Steady banking convergence is giving way to contrasting
financial performance. Re-imagining the business model/processes
and, importantly, execution will separate the winners from the
rest.
- 60% of banking CEOs surveyed acknowledge they must accept some
level of risk to harness automation advantages and enhance
competitiveness.1
- While over 16% of clients worldwide are comfortable with a
branchless, fully digital bank as their primary banking
relationship, competition is shifting from mass market digital
offers to higher-value services, including embedded finance and
advisory services to affluent investors and small and medium-size
enterprises (SMEs).
"We are seeing a significant shift in how generative AI is being
deployed across the banking industry as institutions shift from
broad experimentation to a strategic enterprise approach that
prioritizes targeted applications of this powerful technology,"
said Shanker Ramamurthy, IBM Consulting's Global Managing Director
Banking & Financial Markets. "As banks and other financial
institutions around the world gear up for a pivotal year of
investing in transformation, technology, and talent, we anticipate
their efforts coalescing around initiatives using generative AI to
level up customer experience, boost operational efficiency, reduce
risks and modernize IT infrastructure."
The report shares insights from analysis of industry C-suite
leader sentiment, bank customer behavior and economic data from
eight major markets—the United
States, Canada, European
Union, United Kingdom,
Japan, China, India,
and Japan--and what financial
institutions and their ecosystem partners can glean from the
trends.
For additional perspective and to download the full report,
visit https://ibm.co/2025-banking-financial-markets-outlook.
|
1. 6 Hard Truths
CEOs Must Face: How to Leap Forward with Courage and Conviction in
the Generative AI Era. IBM Institute for Business Value. May 2024.
https://ibm.co/c-suite-study-ceo
|
IBM is a leading provider of enterprise AI, hybrid cloud
architecture, security and ESG insights to the global financial
services sector. Its deep industry expertise, extensive portfolio
of services and solutions, and its robust ecosystem of fintech
partners, empower collaboration, innovation, and creation with
clients. As a trusted partner to banks, insurers, capital markets
and payments providers, IBM guides financial institutions on all
stages of their digital transformation journeys through IBM
Consulting and delivers the proven infrastructure, software, and
services they need through IBM Technology. For more information,
visit www.ibm.com/industries/banking-financial-markets.
The IBM Institute for Business Value, IBM's thought leadership
think tank, combines global research and performance data with
expertise from industry thinkers and leading academics to
deliver insights that make business leaders smarter. For more
world-class thought leadership, visit www.ibm.com/ibv.
About IBM
IBM is a leading provider of global hybrid
cloud and AI, and consulting expertise. We help clients in more
than 175 countries capitalize on insights from their data,
streamline business processes, reduce costs and gain the
competitive edge in their industries. Thousands of government and
corporate entities in critical infrastructure areas such as
financial services, telecommunications and healthcare rely on IBM's
hybrid cloud platform and Red Hat OpenShift to affect their digital
transformations quickly, efficiently and securely. IBM's
breakthrough innovations in AI, quantum computing,
industry-specific cloud solutions and consulting deliver open and
flexible options to our clients. All of this is backed by IBM's
long-standing commitment to trust, transparency, responsibility,
inclusivity and service. Visit www.ibm.com for more
information.
Media Contact
Mary Ellen Higgins
IBM Global Financial Services Industry External Communications
maryellen.higgins@ibm.com
781.789.1911
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