In a rapidly evolving global environment marked by economic uncertainty, technological disruption and heightened regulatory scrutiny, KPMG International’s 2025 Banking & Capital Markets CEO Outlook highlights a sector demonstrating strong resilience and optimism.
Based on insights from 110 CEOs across 11 key markets, including India, the report underscores growing confidence in long-term growth, alongside accelerated adoption of artificial intelligence (AI) and a sharper focus on trust, governance and sustainability.
Globally, 83% of CEOs express confidence in their organisations’ growth prospects over the next three years, up from 78% in 2024. AI has emerged as a central investment theme, with 65% of leaders identifying it as a top priority and 70% planning to allocate 10–20% of budgets toward AI initiatives. Notably, 59% expect agentic AI to have a transformational impact, with most anticipating returns within one to three years.
India reflects these global trends strongly. The banking sector continues to benefit from sustained credit growth, robust digital infrastructure and rapid adoption of AI-led operating models. At the same time, institutions are intensifying efforts around cybersecurity, climate risk and governance to ensure long-term resilience.
Sanjay Doshi, Partner and Head, Transaction Services and Financial Services Advisory, KPMG in India, said: “As global banking leaders respond to rising operational and regulatory costs by pursuing scale and strategic M&A, the same imperative is increasingly shaping the Indian banking sector. Scale today is not just about size—it enables wider reach, faster digital transformation and improved efficiency. Strategic consolidation and partnerships will be key to unlocking new growth opportunities.”
However, challenges persist. Cybersecurity remains a top concern for 86% of CEOs, while ethical issues, data readiness and regulatory gaps continue to hinder AI implementation.
Overall, the findings signal an inflection point for the banking sector, where success will depend on balancing innovation with trust, and technology adoption with human capital transformation.
