2025 Outlook for Banking and Financial Markets: Key Trends and Insights from IBM
Transformative initiatives shape the future of financial services
Armonk, NY, February 5, 2025 / IBM (NYSE: IBM) has released its annual report outlining expectations for technology and transformation within the global financial services sector. This insightful analysis forms part of the IBM Institute for Business Value 2025 Perspectives for Banking and Financial Markets.
Key Findings
- The adoption of generative AI in banking is poised for growth. As of 2024, only 8% of banks implemented generative AI systematically, while 78% took a more tactical approach. As banks transition from pilot programs to full implementation, many are reevaluating their strategies to expand services, particularly through agentic AI.
- As traditional banking models converge, performance disparities emerge. A reimagining of operational models is crucial, as execution will distinguish successful institutions from those that fall behind.
- 60% of bank CEOs acknowledge the necessity of embracing certain risks to leverage automation and enhance competitiveness.
- Over 16% of global consumers are now comfortable with fully digital banking relationships, without physical branches. This shift indicates a movement from broad digital offerings to specialized services, including integrated financial advisories for affluent clients and small to medium enterprises (SMEs).
Shifting Towards Generative AI
“We are witnessing a remarkable shift in the deployment of generative AI within the banking industry. Institutions are moving from generalized experimentation to a strategic approach that emphasizes the targeted use of this transformative technology,” stated Shanker Ramamurthy, Global CEO of IBM Consulting for Banking & Financial Markets. “As financial institutions gear up for a pivotal year of investment in technology and talent, we anticipate their initiatives will center around leveraging generative AI to enhance customer experiences, optimize operational efficiency, mitigate risks, and modernize IT infrastructure.”
Insights from Industry Leaders
The report consolidates findings from surveys of industry executives, examining customer behaviors and economic data across eight major markets: the United States, Canada, the European Union, the United Kingdom, Japan, China, India, and Japan. This comprehensive analysis helps financial institutions and their ecosystem partners to identify emerging trends and opportunities.
Further Resources
For additional insights and to access the complete report, please visit the official IBM report page.
IBM’s Role in Financial Transformation
IBM stands as a leading provider of corporate AI, hybrid cloud solutions, and cybersecurity for the global financial services industry. With its deep industry expertise, robust portfolio of services, and extensive ecosystem of fintech partners, IBM fosters collaboration and innovation, guiding clients through their digital transformation journeys. As a trusted partner for banks, insurers, capital markets, and payment providers, IBM Consulting delivers proven infrastructure, software, and services to meet the evolving needs of the financial sector.
About IBM
IBM is recognized as a key player in hybrid cloud and AI solutions. Serving clients across more than 175 countries, IBM helps companies leverage data, optimize processes, and enhance their competitive edge. Many vital industries, such as financial services, telecommunications, and healthcare, rely on the IBM hybrid cloud platform to execute their digital transformations efficiently and securely. With a commitment to trust, transparency, responsibility, and inclusiveness, IBM continually drives innovation and delivers value to its customers.
Contact Information
For media inquiries, please reach out to: Mary Ellen Higgins
IBM Global Financial Services Industry External Communications
(Protected by email)
781.789.1911
Source: IBM