Tech Mahindra has released its comprehensive global survey report titled “Building the AI-Driven Bank of Tomorrow,” developed in collaboration with East & Partners. The report offers in-depth insights into how artificial intelligence (AI), generative AI (GenAI), and agentic intelligence are reshaping the global banking ecosystem, transforming it into an intelligent, invisible, and indispensable network of financial services.
Based on interviews with 150 senior banking executives across 25 countries in the Americas, Europe, the Nordics, and the Asia-Pacific region, the report captures perspectives from CIOs, CTOs, and CDOs of leading banks and non-banking financial institutions. It highlights critical focus areas such as customer experience, regulatory compliance, data governance, and legacy modernisation as central to AI-led transformation in the financial sector.
According to the findings, 81 per cent of global banks already have dedicated AI budgets, with allocations expected to nearly double to 17 per cent of total IT spending by 2028, indicating a decisive shift from experimentation to enterprise-scale execution. The study also reveals that 37 per cent of financial institutions are investing heavily in GenAI, with European banks leading global adoption. Additionally, 70 per cent of banks identify customer experience as their top AI use case, outpacing automation and compliance initiatives.
The report notes that while 92 per cent of banks globally are pursuing legacy modernisation, only 14 per cent have exceeded expectations so far, underscoring the challenges of embedding AI at scale. Regional investment trends also show that banks in the Americas lead with an average AI allocation of 12 per cent of IT budgets, followed by Europe at 9 per cent, with APAC and Nordic regions rapidly increasing their focus on GenAI-driven innovation.
Kshitij Kumar, Global Head – Banking, Financial Services & Insurance, Tech Mahindra, stated, “Across the BFSI industry, AI has moved from experimentation to execution, yet many institutions still face challenges of legacy infrastructure and responsible AI adoption. This report acts as a strategic playbook to help banks navigate the evolving AI landscape through proven frameworks, data-driven insights, and actionable benchmarks. With our ‘AI Delivered Right’ strategy and the agentic AI platform TechM Orion, we are enabling our clients to build the intelligent, human-centric bank of tomorrow.”
Through this initiative, Tech Mahindra aims to guide financial leaders in aligning technology, culture, and governance to achieve AI maturity responsibly. The report also serves as a roadmap for banks to modernise their operations, enhance compliance, mitigate cybersecurity risks, and deliver personalised, transparent, and secure customer experiences in an increasingly digital financial ecosystem.
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