Financial services companies are accelerating their artificial intelligence and digital transformation efforts, but there is a new development. KPMG The analysis underlines that real progress depends on appropriate foundational systems rather than just speed. KPMG Global Technology Report 2026: Financial services insights from a global survey of 760 technology executives across the industry paint a picture of strong goals focused on building what’s right infrastructure Supporting enterprise-wide change.
according to research According to the findings, 89 percent of respondents classify their organizations as either innovators (among the first to test emerging tools) or fast followers who quickly adopt proven solutions.
This confidence reflects an industry eager to leverage AI for everything from operational streamlining to customer personalization.
But leaders recognize that scalable business results require more than flashy pilots.
More than half of the surveyed organizations agree that high-quality data, secure cloudy environments and advanced cybersecurity drive the bulk of current digital returns, even as AI investments accelerate.
The adoption of artificial intelligence is accelerating dramatically. Today, only 26 percent of financial institutions have moved their AI use cases to full-scale production with measurable returns across multiple applications.
But within the next 12 months, 65 percent expect to reach this milestone. Banking and capital markets are expected to bear this burden, and the insurance sector is expected to follow this closely.
asset management and private equity Even though it is a little behind, we still expect significant gains.
Data and its analytical maturity will also increase; expectations will rise from low single digits currently to over 60 percent at high-end levels by this time next year. Despite the momentum, obstacles remain.
Nearly 40 percent of executives admit they lack the talent to fully implement their technology strategy, while more than half say the burden of fixing legacy technical debt is an impediment to growth. financing new ventures.
37 percent of respondents face barriers to scaling cybersecurity, and 35 percent face similar barriers. artificial intelligence and automation efforts.
Budget realities increase the pressure. About a third of the technology spending it still flows into routine maintenance rather than growth or transformation.
Regulator Complexity and increasing cyber threats, exacerbated by AI-enabled attacks and intellectual property risks, further complicate the situation; many professionals, cyber security and this year’s data analytics budgets.
Kerim HadjiHead of Global Financial Services at KPMG International emphasizes that technology alone cannot drive progress transformation.
He explained that sustainable advantage emerges when companies blend their proprietary data, customer relationships and domain expertise with agile external partnerships.
Moving from rigid multi-year roadmaps to iterative planning and rethinking “build versus buy” decisions will be crucial.
Successful business Organizations tend to more proactively anticipate gains in operational efficiency, new revenue streams, accelerated innovation, and stronger customer experiences.
report It makes clear that financial services professionals who invest strategically in data governance, talent development, resilient infrastructure, and collaborative ecosystems will be relatively well positioned for transformation. Adoption of artificial intelligence transforming it into a meaningful, corporate-wide impact.
