A Comparative Analysis: Digital Transformation Priorities Across Global Banking Markets
Digital transformation is reshaping the global banking landscape, but the journey is far from uniform. Banks in different regions face distinct regulatory environments, customer expectations, and competitive pressures, all of which shape their transformation strategies. Drawing on insights from senior banking leaders across the U.S., U.K., Australia, France, Germany, Canada, and Southeast Asia, this analysis explores how priorities, challenges, and progress differ—and what unites the world’s leading banks as they accelerate toward a digital-first future.
Shared Imperatives, Local Nuances
Across all markets, banks recognize that digital capabilities are no longer optional—they are mission critical. The COVID-19 pandemic accelerated digital adoption, exposing gaps in customer experience and operational agility. Yet, 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, with regional differences in what drives or hinders progress.
Customer Experience: The Universal Priority
Improving customer experience is the top digital transformation goal worldwide. Banks are investing in:
- Personalized, omnichannel journeys: U.S. (44%), U.K. (40%), Australia (43%), and Germany (37%) all cite personalized customer journeys as a leading priority. Southeast Asian banks (42%) and French banks (41%) are also focused on combining customer data for richer insights.
- New products and services: From Southeast Asia (22%) to France (41%) and Australia (41%), developing innovative offerings is central to transformation strategies.
- Community engagement: German (50%) and French (40%) banks, in particular, emphasize community engagement, such as financial literacy initiatives and support for customers with limited digital skills.
Operational Agility: The Next Frontier
Legacy technology and lack of agility are persistent barriers. Banks in Canada (48%), the U.S. (38%), U.K. (32%), Australia (31%), and Germany (34%) all cite legacy systems as a major hindrance. The adoption of agile operating models varies widely:
- Agile adoption rates: U.K. (34%), Germany (29%), Canada (26%), U.S. (33%), Australia (21%), France (26%), and Southeast Asia (notably lower).
- Cloud migration and intelligent tech: Investment in cloud-based core banking systems is a top operational priority in Germany (34%), U.K. (35%), Australia (31%), and Southeast Asia (35%). Intelligent technologies, including AI and machine learning, are prioritized in the U.S. (53%), U.K. (45%), Germany (47%), and Australia (31%).
Regulatory and Budgetary Pressures
Regulatory challenges are a top-three barrier in most regions, especially in Southeast Asia (43%), Australia (39%), and France (36%). Budget constraints are particularly acute in Germany (37%) and Australia (41%).
The Rise of AI and Generative Technologies
AI is rapidly moving from experimentation to enterprise-wide adoption. Banks in the U.S. (53%), U.K. (45%), Germany (47%), and Australia (31%) are prioritizing AI and emerging technologies. 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.
ESG and Diversity: Emerging Differentiators
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%).
Regional Snapshots
United States
- Top priorities: AI/emerging tech, customer experience, agility, cybersecurity.
- Barriers: Legacy tech, operational agility, regulatory complexity.
- Self-assessment: 61% believe they’re ahead in customer experience transformation; 91% in innovation.
United Kingdom
- Top priorities: Cybersecurity, customer experience, efficiency, new products.
- Barriers: Budget, legacy tech, regulation, skills gap.
- AI focus: 75% see AI’s greatest potential in efficiency and speed; 76% prioritize internal generative AI.
Australia
- Top priorities: Agility, customer experience, new customer acquisition, cybersecurity.
- Barriers: Budget, data access, regulation.
- AI focus: 75% favor custom AI tools; 55% focus on internal use cases.
France
- Top priorities: Agility, new customer acquisition, customer experience, cybersecurity.
- Barriers: Data access, unified strategy, regulation.
- ESG: 50% cite ESG as the top priority; 62% say ESG drives transformation.
Germany
- Top priorities: Cybersecurity, revenue growth, agility, customer experience.
- Barriers: Budget, skills gap, data access.
- AI focus: 47% prioritize AI/emerging tech; 50% focus on internal generative AI.
Canada
- Top priorities: Cybersecurity, efficiency, agility, revenue growth, customer experience.
- Barriers: Legacy tech, regulation, lack of unified strategy.
- Customer centricity: 56% focus on combining customer data for richer insights.
Southeast Asia
- Top priorities: Customer experience, new products, efficiency, agility.
- Barriers: COVID-19, regulation, legacy tech.
- ESG and DEI: 65% say ESG drives transformation; 42% have DEI commitments.
What Sets Transformation Leaders Apart?
Transformation leaders—those making the most progress—share several traits:
- Customer-led culture: 95% say customer centricity drives key decisions.
- Agile operating models: 99% have embraced agility at scale.
- Platform-based, data-driven approaches: Leaders invest in cloud, AI, and analytics to enable real-time insights and innovation.
- Partner ecosystems: 98% have broad partner networks to compete with digital-first challengers.
- Talent and culture: Investment in upskilling, reskilling, and cultural change is as important as technology.
Conclusion: Charting a Path Forward
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. The most successful banks are those that:
- Know the competitive landscape and invest in digital innovation to keep pace with fintechs and tech giants.
- Transform people and culture alongside technology, prioritizing talent development and organizational agility.
- Build partner ecosystems to scale and innovate rapidly.
- Embrace AI and intelligent technologies to drive efficiency, personalization, and new value propositions.
Publicis Sapient partners with leading banks worldwide to accelerate digital transformation, helping them navigate local complexities while adopting global best practices. As the industry continues to evolve, those who act boldly and decisively will define the future of banking.