As U.K. banks accelerate their digital transformation journeys, the spotlight is shifting from technology alone to the people and culture that underpin true organizational change. The rise of artificial intelligence (AI) and generative AI (Gen AI) is not just a technological leap—it’s a catalyst for reimagining how banks operate, how employees work, and how customers experience financial services. For transformation to succeed, banks must address workforce skills, cultural agility, and the trust that binds employees and customers to the institution.
Digital transformation in banking is no longer just about upgrading systems or launching new apps. It’s about equipping people with the skills and mindset to thrive in a rapidly evolving landscape. In the U.K., 32% of banks are prioritizing the development of existing talent through upskilling and reskilling, yet nearly 29% cite a lack of workforce skills or willingness to embrace change as a major barrier to transformation. Globally, this challenge is echoed, with banks in Germany (34%), Canada (40%), and Australia (35%) also investing heavily in talent development.
The adoption of agile operating models is a key marker of progress. While 34% of U.K. banks have adopted some form of agile model, the journey is ongoing. Transformation leaders—those making the most progress—are nearly unanimous (99%) in embracing agility at scale. Agile ways of working break down silos, foster cross-functional collaboration, and empower teams to respond quickly to market and customer needs. Yet, for many banks, legacy structures and mindsets remain obstacles.
AI and Gen AI are now central to banks’ transformation agendas. In the U.K., 75% of banking leaders see AI’s greatest potential in making processes more efficient, profitable, and faster. Over three-quarters plan to prioritize non-customer-facing Gen AI use cases—such as credit analysis, risk measurement, and document automation—over the next three years. This focus on internal transformation underscores the need for employees to adapt to new workflows, tools, and decision-making paradigms.
However, the shift to AI-driven operations is not without its challenges. Employees may fear job displacement, struggle with new technologies, or resist changes to established processes. Banks must invest not only in technical training but also in change management, communication, and support systems that help staff navigate uncertainty and see the value in new ways of working.
Culture is the engine of sustainable transformation. Leading banks recognize that technology investments must be matched by investments in people and culture. Transformation leaders are distinguished by their customer-led cultures, platform-based approaches, and commitment to personalized experiences. They also prioritize depth and breadth of talent, agile tools, and partnerships with fintechs and technology providers.
To foster an innovative, agile culture, banks are:
Trust is equally critical—both internally and externally. Employees need to trust that AI and automation will augment, not replace, their roles, and that their input is valued in shaping the future of work. Customers, meanwhile, must trust that banks are using AI ethically, protecting their data, and delivering transparent, fair outcomes.
Banks face several barriers on the path to a human-centered digital transformation:
Digital transformation in banking is not a technology upgrade—it’s a holistic organizational shift. The most successful banks are those that:
As Gen AI reshapes the industry, the human factor will be the defining element of success. By putting workforce, culture, and trust at the heart of transformation, U.K. banks—and their global peers—can unlock the full potential of digital innovation and build lasting value for employees, customers, and society.