#India #Pune #Tech Mahindra #AI Banking #Financial Ecosystems

Tech Mahindra Unveils Survey Report on 'Building the AI-Driven Bank of Tomorrow'

In a groundbreaking study, Tech Mahindra has revealed its global survey report titled 'Building the AI-Driven Bank of Tomorrow.' This report, developed in collaboration with East Partners, presents critical insights into how artificial intelligence (AI), generative AI (GenAI), and agentic intelligence are transforming the banking landscape around the world. Designed especially for banking professionals, the report serves as a guide for navigating the rapidly evolving financial ecosystems that increasingly rely on intelligent technologies.

A Comprehensive Survey Approach

Conducted with a diverse group of 150 senior banking executives, the survey spans across 25 countries, including regions in the Americas, Europe, Nordics, and Asia-Pacific. This extensive reach provides a well-rounded perspective, pooling insights from CIOs, CTOs, and CDOs of both banking and non-banking financial sectors.

Key Findings: The Shift Towards AI

Among the notable findings:

• - Acceleration of AI Investments: A significant 81% of global banks already maintain dedicated AI budgets, with expectations for those budgets to nearly double to 17% of total IT spend by 2028. This shift signals a move from experimenting with AI to a commitment towards large-scale adoption.
• - Aggressive Investment in GenAI: Over 37% of financial institutions are currently investing heavily in GenAI to gain a competitive edge, particularly influenced by stronger momentum in European banks.
• - Data as an Asset: Surprisingly, only 20% of banks report having a comprehensive real-time data governance framework, although those that are leveraging Data Mesh architectures and Explainable AI models are achieving superior personalization and compliance outcomes.
• - Legacy Systems and Modernization: While 92% of banks are actively pursuing legacy modernization projects, only 14% say they have exceeded their goals, underscoring the complexity involved.

Regional Insights and Priorities

The survey further revealed regional trends:

• - Banks in the Americas lead with an average AI-related IT budget of 12%, amounting to approximately $660 million annually.
• - European banks follow at 9%, with expected investments peaking by 2028.
• - Notably, 51% of banks globally are distributing their IT budgets to bolster regulatory compliance, while 48% prioritize operational stability.
• - Almost 70% of banks view customer experience as the primary use case for AI implementation, surpassing both automation and compliance stressors.

Expert Insights

Kshitij Kumar, Tech Mahindra’s Global Head of Banking, Financial Services & Insurance, emphasizes that AI within the financial services and banking industry has progressed from mere experimentation to tangible execution. However, he also notes the challenges of dealing with fragmented legacy systems. The report serves as a strategic framework for banking institutions aiming to embed AI responsibly and at scale.

Kumar adds, "Our report equips CXOs with essential insights and actionable benchmarks to facilitate transformation. Tech Mahindra is dedicated to guiding our clients on their journey towards establishing a bank that is digital, intelligent, and integral to tomorrow's financial landscape.”

Conclusion

The findings in Tech Mahindra's 'Building the AI-Driven Bank of Tomorrow' report illustrate the crucial interplay between emerging technologies and the financial sector’s future. As banks navigate complex challenges ranging from AI integration to data management, the need for actionable insights and strategic frameworks has never been more critical. In an industry where agility and modernization are paramount, this report positions itself as a vital resource for banks determined to chart a successful path forward, embracing the future with confidence and clarity.

For further insights and a deeper dive into the report, visit Tech Mahindra's website.