IBM (NYSE: IBM) released its expectations for technology and transformation in the global financial services industry next year, as presented in the report IBM Institute for Business Value 2025 Outlook for Banking and Financial Markets.
Key Insights
- The adoption of generative AI is about to surge. Only 8% of banks systematically developed generative AI in 2024, while 78% approached it tactically. As banks progress from pilot projects to execution, more are redefining their strategies to expand services, including the adoption of AI agents.
- Constant banking convergence is giving way to contrasting financial performances. Reimagining the business model and processes—and, most importantly, their execution—will be the differentiator between leaders and the rest.
- 60% of surveyed banking CEOs acknowledge they must accept some level of risk to leverage the benefits of automation and increase competitiveness.
- Although over 16% of customers worldwide feel comfortable with a fully digital, branchless bank as their primary financial institution, competition is shifting from mass-market digital offerings to higher-value services, including embedded finance and advisory services for high-net-worth investors and small and medium-sized enterprises (SMEs).
“We are seeing a significant shift in how generative AI is being implemented in banking as institutions move from broad experimentation to a strategic approach focused on targeted applications of this powerful technology,” said Shanker Ramamurthy, Global Managing Partner of Banking and Financial Markets at IBM Consulting. “With banks and other financial institutions worldwide preparing for a pivotal year of investments in transformation, technology, and talent, we anticipate their efforts will focus on using generative AI to enhance customer experience, increase operational efficiency, reduce risks, and modernize IT infrastructure.”
The report shares insights from the sentiment analysis of industry leaders, banking customer behavior, and economic data from eight major markets—the United States, Canada, the European Union, the UK, Japan, China, India, and Japan—and what financial institutions and their partners can learn from these trends.
For more information and to download the full report, visit: https://ibm.co/2025-banking-financial-markets-outlook.
