IBM Institute for Business Value 2025 Outlook for Banking and Financial Markets predicts that Generative AI will elevate banks' financial performance in 2025.
"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 prioritises targeted applications of this powerful technology," said Shanker Ramamurthy, IBM Consulting's Global Managing Director Banking & Financial Markets.
2025 Global Outlook for Banking and Financial Markets
The outlook reveals that only 8% of banks systematically developed generative AI in 2024. Most (78%) had a tactical approach. More banks are redefining their strategies for expanding their services, such as agentic AI.
The majority (60%) of banking CEOs believe that accepting some risk is necessary to harness the advantages of automation advantages and enhance competitiveness.
The banking industry is shifting significantly from mass-market digital offers to higher-value services. This transition includes the provision of embedded finance and advisory services to affluent investors and small and medium-sized enterprises (SMEs). Furthermore, the report reveals that over 16% of clients now prefer a branchless, fully digital bank.
Gen AI and banks
As banks and other financial institutions gear up for a pivotal year of investing in transformation, technology, and talent, we anticipate their efforts coalescing around initiatives using generative AI," Ramamurthy said.
As Ramamurthy noted, this technology has the potential to significantly enhance customer experience, boost operational efficiency, reduce risks, and modernise IT infrastructure.
The report shares insights from an industry C-suite leader sentiment analysis, bank customer behaviour, and economic data from eight global markets, including China and Japan.
