Digital transformation is no longer a future aspiration for banks—it’s a present-day imperative. Yet, the journey toward a digital-first future is far from uniform. U.S. banks, while making significant strides, face a unique set of priorities and challenges compared to their global peers. By benchmarking the U.S. against other major markets—including the U.K., Germany, France, Canada, Australia, and Southeast Asia—distinctive trends and actionable insights emerge for banking leaders seeking to accelerate transformation and maintain competitive edge.
Across all regions, banks recognize that digital capabilities are mission critical. The COVID-19 pandemic accelerated digital adoption, exposing gaps in customer experience and operational agility. While 83% of banks globally report having a clearly articulated digital transformation strategy, more than half admit they have yet to make significant progress on execution. The gap between aspiration and action is a recurring theme, but the drivers and barriers differ by region.
Improving customer experience is the top digital transformation goal worldwide. U.S. banks are no exception—68% of U.S. banking leaders admit that evolving customer expectations have highlighted weaknesses in their current customer experience. This focus is mirrored globally: 75% of U.K., 73% of Australian, and 76% of German banks report similar challenges.
Personalization and omnichannel journeys are at the heart of transformation strategies. In the U.S., 44% of banks cite creating personalized customer journeys as their main objective, closely aligned with the U.K. (40%), Australia (43%), and Germany (37%). Canadian and Southeast Asian banks are also prioritizing the combination of customer data across systems to build richer insights and deliver tailored experiences. Community engagement—such as financial literacy initiatives and support for customers with limited digital skills—is especially prominent in Germany and France.
Legacy technology remains a formidable barrier across markets. In the U.S., 67% of banks say legacy systems hinder their ability to deliver the digital experiences customers expect. This challenge is echoed in Canada (68%), Germany (70%), France (70%), and Australia (64%).
Operational agility is another major hurdle. Only a third of U.S. banks report having a fully agile operating model, a figure that is comparable to the U.K. (34%) and Germany (29%), but higher than Australia (21%). Canadian banks (26%) and French banks (26%) also lag in agile adoption. The need for greater agility is underscored by the fact that banks globally cite it as a top priority for operational transformation, with investments in cloud-based core banking systems and intelligent technologies (such as AI and machine learning) leading the way.
AI is rapidly moving from experimentation to enterprise-wide adoption. Over half (53%) of U.S. banks cite AI and emerging technologies as their number one priority for the next three years, a trend matched by the U.K. (45%), Germany (47%), and Australia (31%). Internal, non-customer-facing use cases—such as credit analysis, risk measurement, and document automation—dominate current investments, with 50-66% of banks in major markets pursuing these applications. U.S. banks are particularly focused on generative AI for internal use, with 65% pursuing transactional use cases.
Regulatory complexity is a top-three barrier for U.S. banks (36%), and this challenge is even more pronounced in Southeast Asia (43%) and Australia (33%). Budget constraints are particularly acute in Germany (37%) and Australia (41%), while U.S. banks are more likely to cite operational agility and legacy technology as their primary obstacles.
Environmental, social, and governance (ESG) considerations are increasingly driving transformation, especially in France (50%), Southeast Asia (65%), and Australia (57%). However, there is a notable gap between intention and action, with many banks lacking the data and processes to measure ESG performance. Diversity, equity, and inclusion (DEI) commitments are highest in Southeast Asia (42%) and Australia (36%), but lag in the U.S. (22%) and France (37%).
U.S. banks are confident in their transformation efforts: 61% believe they’re ahead of competitors in customer experience transformation, and 91% feel they lead in innovation for products and services. However, this self-assessment is not unique—similar confidence is seen in Germany (76% ahead in CX transformation), the U.K. (63%), and Australia (59%).
Transformation leaders—those making the most progress—share several traits:
For U.S. banks seeking to accelerate their digital transformation and learn from global leaders, four strategic moves stand out:
While the pace and focus of digital transformation vary by region, the direction is clear: banks must become more agile, data-driven, and customer-centric to thrive. U.S. banks have made notable progress, particularly in AI adoption and customer experience innovation, but can accelerate further by learning from the operational agility and ecosystem strategies of their global peers. The winners will be those who act boldly and decisively—reimagining every aspect of their business for a digital-first future.