TLDR: Tech Mahindra, in collaboration with East & Partners, has released a global survey report titled ‘Building the AI-Driven Bank of Tomorrow.’ The report highlights the accelerating adoption of AI, generative AI (GenAI), and agentic intelligence in the global banking sector, with 81% of banks already having dedicated AI budgets expected to nearly double by 2028. European banks are leading in GenAI adoption, and the report emphasizes the critical role of data governance and legacy modernization in this AI-driven transformation.
PUNE, India – October 27, 2025 – Tech Mahindra, a prominent global provider of technology consulting and digital solutions, has announced the release of its comprehensive global survey report, ‘Building the AI-Driven Bank of Tomorrow.’ Developed in partnership with East & Partners, the report offers crucial insights into how artificial intelligence (AI), generative AI (GenAI), and agentic intelligence are fundamentally reshaping the global banking landscape, fostering the emergence of intelligent, invisible, and indispensable financial ecosystems.
The survey gathered perspectives from 150 senior banking executives, including CIOs, CTOs, and CDOs, across 25 countries spanning the Americas, Europe, the Nordics, and Asia-Pacific. The findings underscore a significant shift from experimental AI initiatives to enterprise-scale adoption within the financial services industry.
Key findings from the report reveal a robust commitment to AI investment:
AI Investment Acceleration: A substantial 81% of global banks currently allocate dedicated budgets for AI. These allocations are projected to almost double, reaching 17% of total IT spending by 2028, signaling a decisive move towards widespread implementation.
GenAI and Agentic AI Adoption: Over one-third (37%) of financial institutions are actively investing in GenAI to secure an early-mover advantage, with European banks demonstrating particular leadership in this area.
Data as a Competitive Advantage: The report highlights a critical gap, noting that only 1 in 5 banks possess a robust, real-time data governance framework. Institutions that are progressing towards Data Mesh architectures and Explainable AI models are achieving superior outcomes in personalization and regulatory compliance.
Legacy Modernization: While 92% of banks globally have ongoing legacy modernization initiatives, only 14% have surpassed their expectations, with 30% on track, 17% falling short, and 31% scaling down efforts to optimize cost-value ratios.
Kshitij Kumar, Global Head of the Service Line: Banking, Financial Services & Insurance at Tech Mahindra, commented, ‘Across the BFSI industry, AI has moved from experimentation to execution, yet many institutions still grapple with fragmented legacy systems and the complexity of embedding AI responsibly at scale. The report serves as a strategic playbook for banks to navigate the evolving AI landscape with data-backed insights, proven frameworks, and actionable benchmarks to accelerate transformation.’
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Tech Mahindra’s ‘AI Delivered Right’ strategy, coupled with its Agentic AI platform, TechM Orion—which features over 50 ready BFSI agents—reaffirms the company’s commitment to accelerating customers’ journeys toward the bank of tomorrow: a digital, intelligent, and indispensable entity. The report aims to guide CXOs in aligning technology, culture, and purpose to build future-ready, resilient, and human-centric financial ecosystems, addressing challenges such as defining ROI, mitigating cybersecurity risks, and overcoming data silos. It also outlines strategic frameworks and execution models to accelerate modernization, embed AI responsibly, and deliver hyper-personalized, secure, and compliant digital experiences.
