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The majority of banking CEOs exhibit a spirit of readiness to embrace challenges.
66 per cent believe their organisation is equipped to upskill employees to leverage the benefits of Gen AI. (Representative image)
CEOs in the banking sector are confident about their company’s growth potential and are betting on large investments in emerging technology, a survey of 120 sector leaders from the banking sector from across the world finds.
Confidence in Industry Growth
The KPMG CEO Outlook, now in its tenth year globally, revealed that 66 per cent of banking CEOs are confident in the growth prospects of the banking and capital markets industry over the next three years.
Additionally, 81 per cent report Gen AI as a top investment priority for their organisations, despite ongoing economic uncertainty, as they see the emerging technology as a key component in business transformation.
Readiness to Embrace Challenges
The majority of banking CEOs exhibit a spirit of readiness to embrace challenges. For example, 76 per cent say that experimentation is key to unlocking Gen AI’s potential and they encourage all employees to take part. Moreover, 66 per cent believe their organisation is equipped to upskill employees to leverage the benefits of Gen AI.
Talent and Cyber Security Concerns
However, talent and cyber security remain key concerns for industry leaders as the industry attempts to attract and retain professionals with the skills required to support technology-enabled transformation. This concern is exacerbated by an uncertain geopolitical and macroeconomic environment. Notably, 81 per cent reported cybercrime/cyber security as the top factor likely to negatively impact organisational growth over the next three years.
Focus on Sustainability and ESG Investments
Sustainability remains high on the agenda as CEOs continue to view ESG as an important driver of growth that will shape banks’ behaviours and investments. 58 per cent of respondents anticipate receiving a significant rate of return on their ESG investments within three to five years.
Insights from Industry Leaders
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 prioritising 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.”
Survey Methodology
The KPMG 2024 Banking CEO Outlook, part of the 10th edition of the KPMG 2024 CEO Outlook, is compiled from the views of 120 banking and capital markets chief executive officers. The survey was conducted between 25 July and 29 August 2024, providing unique insight into the mindset, strategies, and planning tactics of CEOs.
Geographic and Industry Representation
The survey included CEOs from 11 key markets (Australia, Canada, China, France, Germany, India, Italy, Japan, Spain, the UK, and the US) and 11 key industry sectors, including banking.
In the banking sector research, the two largest sub-sectors were commercial banking (27 per cent) and capital markets/investment banking (22 per cent). The best-represented countries based on organisational headquarters are the US, followed by India, the UK, China, Canada, and Germany.
