Indian banks are experiencing growth due to increased credit, digital infrastructure, and AI adoption, according to a recent report by KPMG International. The report highlights that the sector is aligning with global standards by integrating AI into operations, focusing on workforce training, and enhancing cybersecurity and ESG frameworks for long-term sustainability.
The study, based on insights from 110 global Banking and Capital Markets CEOs, reveals that 83% are optimistic about future growth, with 65% prioritizing AI investments. Additionally, 70% of CEOs plan to allocate a significant portion of their budgets to AI in the next 12 months, expecting transformative outcomes within one to three years.
Banking and capital market leaders are emphasizing reskilling for AI, with 83% prioritizing workforce training. The report underscores the importance of adapting to AI-driven changes in skill requirements, as 78% of CEOs warn of potential negative impacts on organizations if workforce readiness is not addressed promptly.
Sanjay Doshi, Partner and Head of Transaction Services and Financial Services Advisory at KPMG in India, noted that Indian banks are leveraging scale for digital transformation and cost efficiency. By investing in technology and modernizing operations, banks can explore new markets, enhance value propositions, and ensure long-term competitiveness through strategic partnerships and consolidation.
CEOs in the sector are particularly concerned about cybersecurity, with 86% identifying it as a top growth threat. Ethical challenges and data readiness, along with regulatory gaps, were also highlighted as key areas of focus for sustainable growth and resilience.
