New data from the 2025 KPMG’s Global CEO Outlook reveals that significant structural risks are threatening the long-term organisational prosperity of the global banking industry.
This threat to the long-term organizational prosperity of banks exists despite the aggressive investment in technology and innovation. Surprisingly, in some cases, the technology and innovations themselves pose a threat to the banks.
According to insights from the KPMG 2025 Global CEO Outlook copied to The High Street Journal, banking leaders have identified five major trends that could undermine growth, stability, and competitiveness if not urgently addressed.
1. Cybercrime and Cyber Insecurity (86%)
First on the list, according to CEOs of banks, is Cybercrime and Cyber insecurity. A whopping 86% of banking CEOs identify this threat as the most serious threat to organisational prosperity.
As banks digitise operations and expand online services, they become bigger targets for ransomware, fraud, data breaches, and AI-driven cyberattacks. The financial and reputational costs of a single breach can be devastating.
2. AI Workforce Readiness (78%)
Number two on the list is AI Workforce Readiness. While banks are investing heavily in artificial intelligence, 78% of CEOs fear that inadequate workforce readiness poses a serious risk.
Despite the disruptions AI is causing in the banking industry, many employees lack the technical skills needed to operate alongside AI systems, interpret data insights, or manage automated decision-making tools.
Without upskilling, technology investments may fail to deliver value.
3. Successful Integration of AI into Business Processes (77%)
Third on the list is the concern of successful integration of AI into business processes. 77% of banking CEOs agree that this is a major threat to the industry. Deploying AI tools is one thing; embedding them seamlessly into core banking operations is another.
This 77% of CEOs say integration challenges could negatively impact prosperity. Poorly aligned AI systems can disrupt workflows, create compliance gaps, and increase operational risk rather than improve efficiency.
4. Competition for AI Talent (75%)
The race for skilled AI professionals is intensifying. Three-quarters of banking CEOs cite fierce competition for AI talent as a constraint.
Banks are competing not only with each other but with fintech firms and global technology companies, often driving up compensation costs and widening skill gaps.
5. Cost of Technology Infrastructure (75%)
Modern banking requires significant investment in cloud systems, cybersecurity frameworks, data centres, and advanced analytics platforms.
75% of CEOs say the high cost of maintaining and upgrading technology infrastructure is a major strain on organisational performance, particularly in volatile economic conditions.
A Sector Under Strategic Pressure
These findings underscore a critical reality that banking’s future prosperity depends not only on adopting new technologies but on managing the risks that come with them.
“For African banks, AI is not a theoretical discussion — it is a strategic imperative. The ability to integrate AI into core processes, manage cyber risk, and build the right talent base will determine competitive advantage. At the same time, banks must modernise legacy systems and manage infrastructure costs, all while protecting trust in an increasingly digital ecosystem,” KPMG’s One Africa Head of Financial Services, Pierre Fourie.
Cybersecurity resilience, workforce transformation, AI integration, talent strategy, and infrastructure investment are now supposed to be top priorities.
