From Fragmented Capability to Connected Value

Banking's next transformation is about unlocking greater value from its existing digital capabilities. Based on insights from 150 banking leaders worldwide, The Bank of Tomorrow report explores how banks are leveraging AI, modern technology, and innovative operating models to make banking resilient, efficient, and customer-centric.

$1.3T

in banking industry net income

>7%

annual payment pools growth

8.5%

AI share of technology budgets in 2025

17%

potential AI share of technology budgets over the next three years

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The Coherence Imperative

Despite significant investments in digital transformation, many banks still struggle to realize meaningful business value from technology initiatives. The next phase of banking requires connecting strategy, technology, operations, customer experience, and trust into a unified operating model.

Challenges

  1. AI budgets continue to grow across the banking industry

  2. Competition from fintechs and digital-native players is intensifying

  3. Customers expect personalized, seamless experiences

  4. Regulatory and governance requirements are becoming increasingly complex

  5. Banks need new growth levers beyond traditional efficiency initiatives

Banking at an Inflection Point.
What Comes Next?

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The Five Shifts That Matter

Intelligent Inclusion
Move beyond traditional credit models by using alternative data and AI-driven decisioning to responsibly expand financial access and unlock underserved lending opportunities.
N=1 Banking
Deliver hyper-personalized, context-aware banking experiences through real-time customer intelligence and predictive engagement.
Sustainable Value Creation
Embed sustainability into lending, risk management, pricing, and product innovation to create long-term value.
Pervasive Banking
Reach customers at the point of need through ecosystem partnerships, embedded finance, and API-enabled banking experiences.
Trust by Design
Build transparent, explainable, and secure AI-powered banking experiences that strengthen customer trust and regulatory confidence

Artificial Intelligence has the potential to fundamentally reshape banking, but the real opportunity extends well beyond automating today’s processes. The Bank of the Future will increasingly be built around intelligent, adaptive workflows where AI supports decisions, anticipates customer needs, and orchestrates execution across the enterprise. The differentiator will be the ability to combine that intelligence with trusted data, strong governance, human judgment, and speed of execution to create measurable value at scale.

Pranati Dave
Vice President, Everest Group

Growth Drivers

The Bank of Tomorrow is being shaped by new opportunities across inclusion, personalization, sustainability, and customer engagement.

  • $380B underserved credit opportunity across emerging markets through informed financial inclusion
  • 10-15% potential revenue uplift through hyper-personalized banking experiences
  • $130T sustainable finance gap creating opportunities for innovative lending and transition finance
  • 1.1B adults globally remain underserved by traditional financial systems despite active economic participation
Where Tomorrow's Growth Will Come From
From Research to Action

From Research to Action

This strategic perspective builds on Tech Mahindra's research report, Building the AI-Driven Bank of Tomorrow, which examined how banks are investing in AI and preparing for the future.

While the report highlights industry trends, challenges, and research findings, this strategic perspectivefocuses on the practical implications and operating model required to realize that vision.

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Building AI-driven
Bank of Tomorrow

Last year, we asked if banks were ready to build the AI-driven Bank of Tomorrow. This year, we answer what coherence looks like in practice:  Five shifts, one operating model and a clear path from fragmented capability to connected value.

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