The financial services industry has reached a decisive AI adoption tipping point, with only about 2 % of institutions worldwide reporting no use of artificial intelligence, according to the Finastra Financial Services State of the Nation 2026 report. This marks a shift from experimentation to mainstream execution, where AI is now integral across core areas such as payments, lending, compliance, and customer engagement — signalling that AI is becoming a foundational technology rather than an optional tool.
The research, based on responses from senior banking and financial executives across major markets in Europe, Asia, the Middle East, the U.S., and Latin America, found that six in 10 institutions improved their AI capabilities in the past year. A growing number of leaders see AI as central to innovation, with 43 % of respondents naming it their top innovation lever and wide adoption in risk management, fraud detection, data analysis, customer service assistants, and document intelligence workflows.
As AI becomes more embedded in operations, security concerns have risen sharply. Institutions now plan to boost security investment by an average of around 40 % in 2026 to address growing digital risk, tighter regulatory scrutiny, and reliance on interconnected systems — an acknowledgment that scaling AI responsibly requires robust protection and governance.
Despite these risks, confidence in the financial sector remains strong. Around 87 % of professionals surveyed expressed optimism about personal opportunities from AI deployment, while 86 % feel positive about their institution’s future prospects as technology and operating models evolve. Improving customer experience — especially personalised services — is now a core driver of competitive strategy.
