KPMG: How Banking CEOs Can Unite Talent and Technology

According to KPMG’s 2025 CEO Outlook on Banking and Capital Markets, the financial sector is experiencing an economic shift, with factors such as tariffs, inflation and liquidity scares impacting the market on a global scale.

Despite this, it finds that Banking CEOs are remaining positive in the face of market uncertainty, continuing their reassessment of company business models and investing more into developing technologies.

Technology remains an operational priority when it comes to boosting profit margins, with 20% of CEOs identifying advanced digitisation, connectivity and AI as key areas to achieve growth.

Appetite for mergers and acquisitions remain high, says KPMG, although many CEOs have opted instead for strategic transactions in order to gain a competitive edge.

Geoff Rush, Global Head of Banking and Capital Markets KPMG International, says: “Given high operational and regulatory costs, scale (in terms of assets and customer numbers) is critical for banks to be able to spread these costs effectively, driving M&A activity. 

“Banks are looking for deals that will expand their distribution capabilities, differentiate their value propositions and help them gain access to new markets/ regions.”

Counter to market optimism, industry executives highlighted several trends that could negatively impact an organisation’s growth, with cybercrime and cyber insecurity ranking highest at 86%. 

Other areas of concern include AI workforce readiness, the successful integration of AI into business processes, the competition for AI talent and the cost of technology infrastructure.

AI technology: innovation and impact

KPMG reveals that leaders in the banking industry are racing to implement AI, with 65% of CEOs stating it as the top investment priority and 59% expecting autonomous AI systems to have a significant impact.

Banks are focusing less on the optics of AI and more on how fast they can deploy and scale the technology, in an effort to accelerate productivity and improve customer service.

According to KPMG, AI is increasingly being used to reimagine areas like customer engagement, implementing AI agents for onboarding and Know Your Customer processes, as well as customer transaction and financial crime monitoring processes.

Leaders set out their intent to continue adoption, with 70% of CEOs planning to allocate between 10-20% of budgets to AI in 2026, highlighting their confidence in the technology as a profit enhancer through automation, risk management and advanced analytics.

Speaking on the demand for AI implementation, Owen Lewis, Global Lead of AI in Banking and Capital Markets KPMG Ireland, says: “AI has moved from hype to a critical component of strategy in banking. 

“[...] AI is now central to operational resilience, customer trust, productivity and competitive edge. There’s an increasing belief that AI is not just about automating tasks, but about fundamentally reimagining how banks operate and serve customers.”

Despite using AI as a tool for growth, KPMG points to obstacles that could impact the development and maintenance of AI in banking systems.

These include the slow pace of regulation, which makes it harder to invest, ethical concerns like algorithmic bias and IT challenges such as data readiness.

Future workforce strategy

Leaders also pointed to workforce culture and strategy radically changing as corporate adoption of AI becomes more commonplace. 

KPMG says CEOs are seeking balance between the human workforce and AI, hoping to create a more productive environment for agents and customers.

To avoid cutting workforce costs, banks are redeploying talent to higher-value roles such as interpreting insights, managing risks and designing new products.

The research shows that CEOs are recognising that beating competitors depends on how they implement AI systems into their workforces. 78% say that AI workforce readiness could negatively impact the organisation if not incorporated effectively.

Further discussing AI’s impact on the banking industry and the workforce, Geoff adds: “AI is no longer a side project for banks — it’s the engine driving operational resilience, customer trust, productivity, and future growth. 

“The future of banking belongs to those who invest in people as much as in technology. Skilling, flexible work, and clear career pathways are now strategic imperatives — because AI’s true value is unlocked by empowered, adaptable teams.”