29 Apr Banking Execs Report Fraud and Security Concerns Prompting Immediate Investments; AI Remains Priority: KPMG Study
Enhancing digital customer experience also a focus; AI deployment challenges reported
April 24, 2025 – As cyber attacks increase in frequency, banks are prioritizing immediate investments in fraud and security protection, while continuing the deployment of Generative AI (GenAI) to bolster their digital service offerings, new findings from the KPMG 2025 Banking Technology Survey reveal.
“As banks continue to expand their digital footprints, they recognize that the stakes have never been higher when it comes to getting their security capabilities right,” said Peter Torrente, Head of Banking & Capital Markets at KPMG U.S. “Trust has always been the foundation of the banking industry, and it will become even more critical as banks move more of their services online while continuing along the path of AI adoption.”
The KPMG 2025 Banking Technology Survey features insights from 200 U.S. banking executives on how banks are setting information technology, data and transformation priorities.
Key Findings:
Bank Execs Prioritizing Investments in Security and Fraud Prevention, Digital Customer Experience, GenAI
- When asked which investments are being prioritized at their bank over the next year, 89% of banking executives cited security and fraud prevention compared to 33% who said enterprise enablement of GenAI tools.
- Conversely, when asked about their priorities in the next three years those figures are inverted, with only 12% citing security and fraud protection as a priority compared to 67% who plan to prioritize enterprise enablement of Gen AI tools.
- Online banking, mobile banking as well as chatbots and virtual assistants are the top three digital channel investment areas of focus for this year.
- When it comes to utilizing GenAI or AI pilots to facilitate implementation of their investment priorities this year, 78% said they are already using GenAI or AI pilots for security and fraud prevention while 77% said they are considering GenAI or AI for digital customer experience enhancement.
Banks increasing cybersecurity budgets to address rising threats, protect customer data and prevent fraud
- 89% of banking executives indicated they are increasing their budget to address cyber risk.
- 75% said they have seen an increase in the number of cybersecurity attacks on their bank in the last year.
- When asked to name the top challenges when deploying Gen AI across the enterprise, 61% cited security and compliance challenges.
Regulations and Operational Efficiency Driving Payments Modernization Efforts
- When asked what key drivers are contributing to modernizing their banks payment platforms and systems, banking executives identified regulatory requirements (83%) and operational efficiency (80%).
- Front-end digital channels and payments AI solutions are the two top payments modernization initiatives banks are undertaking in the coming year.
2025 Banking Technology Report
Insights on technology, innovation, and security in the banking industry.
About KPMG LLP
KPMG LLP is the U.S. firm of the KPMG global organization of independent professional services firms providing audit, tax and advisory services. The KPMG global organization operates in 143 countries and territories and has more than 273,000 people working in member firms around the world. Each KPMG firm is a legally distinct and separate entity and describes itself as such. KPMG International Limited is a private English company limited by guarantee. KPMG International Limited and its related entities do not provide services to clients.
KPMG is widely recognized for being a great place to work and build a career. Our people share a sense of purpose in the work we do, and a strong commitment to increasing access to education and opportunity, advancing mental health, and supporting community vitality. Learn more at www.kpmg.com/us.