Corporate and investment banks face mounting pressure as clients seek real-time services, advanced analytics, and greater flexibility from financial partners.
Corporate and investment banks (CIBs) are entering a period of significant competitive pressure as non-bank financial institutions expand their capabilities and attract corporate clients seeking faster, more transparent, and technology-driven financial services. According to the inaugural World Corporate and Investment Banking Report 2026 published by the Capgemini Research Institute, the competitive landscape of global banking is shifting rapidly, driven by rising client expectations, advances in financial technology, and the growing influence of private capital markets.
The study reveals a striking trend: 85% of corporate clients say they expect to engage with a non-bank financial institution within the next year. Companies are increasingly turning to alternative financial providers—including fintech firms, private credit platforms, and technology-driven investment services—in search of more responsive and integrated solutions than those typically offered by traditional banking institutions.
Changing Client Expectations
Corporate customers today expect banking services to operate with the same speed, transparency, and personalization that they experience in other digital sectors. Businesses managing complex financial operations increasingly require real-time access to data, automated financial processes, and predictive insights to guide strategic decision-making.
However, the report suggests that many traditional banks are struggling to meet these evolving expectations. Around 58% of surveyed clients say real-time responsiveness is a key priority, while 49% want highly personalized engagement from their banking partners, and 40% expect innovative solutions tailored to their operational needs. Yet only 23% of respondents believe their current banking providers fully deliver on these expectations.
Many companies report encountering operational friction when working with corporate and investment banks. A large majority of clients—92%—say banks lack seamless integration with enterprise resource planning (ERP) and treasury systems, forcing organizations to rely on manual processes or custom workarounds. Additionally, 89% cite limited flexibility and personalization in banking services, while 68% say banks fall short in delivering advanced analytics and forecasting capabilities.
These gaps are opening opportunities for technology-focused financial providers that can deliver digital-first services built around automation, APIs, and modern data architectures.
Technology Investments Struggling to Deliver
Traditional banks have spent billions of dollars on digital transformation initiatives over the past decade, particularly in areas such as artificial intelligence, automation, and advanced data analytics. Yet the report indicates that many of these investments have not yet translated into measurable business outcomes.
According to the survey, 82% of CIB executives say their innovation programs have not yet generated meaningful new revenue through innovative products or services. Meanwhile, 51% report that digital transformation efforts have failed to deliver the anticipated cost savings.
One major challenge lies in moving emerging technologies beyond experimental stages. Many banks have launched pilot programs involving AI-powered analytics, algorithmic trading models, or automated compliance tools. However, scaling these solutions across enterprise systems has proven difficult due to organizational complexity, regulatory constraints, and fragmented technology infrastructures.
“Client expectations have evolved dramatically, but many banks are still struggling to operationalize their technology investments,” said Catherine Chedru‑Refeuil, Global Head of Corporate and Investment Banking at Capgemini. She notes that although financial institutions have invested heavily in artificial intelligence and advanced digital platforms, many projects remain confined to pilot stages rather than becoming core business capabilities.
Legacy Infrastructure Remains a Major Barrier
A key factor slowing progress is the continued reliance on legacy technology infrastructure within major banks. According to the report, only 29% of IT budgets in corporate and investment banking are currently directed toward transformative technologies, such as cloud platforms, artificial intelligence systems, or advanced analytics.
By contrast, 43% of IT spending is devoted simply to maintaining and operating existing legacy systems. These older systems often lack interoperability, making it difficult to integrate new digital services or connect seamlessly with client systems.
In addition to technological challenges, regulatory obligations place a significant financial burden on banks. Approximately 61% of executives say compliance requirements consume a large share of operational resources, limiting their ability to invest aggressively in innovation.
These structural constraints can slow the pace of change within large financial institutions, especially compared with fintech companies and non-bank lenders that typically operate with more agile technology environments.
Slowing Revenue Growth
The competitive pressure from non-bank institutions is occurring at a time when revenue growth across corporate and investment banking is expected to moderate. Capgemini’s analysis suggests that global CIB revenues will grow at a compound annual growth rate (CAGR) of about 5.4% over the next five years, down from 6.5% growth recorded between 2022 and 2024.
This deceleration reflects a range of factors, including economic uncertainty, tighter regulatory frameworks, and increasing competition from private credit markets and fintech platforms. As corporate clients diversify their financing sources, traditional banks risk losing both market share and fee income unless they adapt their services.
Strategic Technology Priorities
Despite these challenges, corporate and investment banks are continuing to invest in new capabilities designed to improve their competitiveness. The report highlights several technology areas that banks are prioritizing as part of their long-term strategies.
One key focus is real-time treasury capabilities, particularly for cross-border payment flows. Approximately 77% of CIB executives say they are investing in systems that enable instant transaction visibility, automated reconciliation, and faster international settlements.
Another area attracting strong interest is next-generation AI tools for capital markets operations. Around 65% of executives are exploring AI-driven applications such as algorithmic trade execution, predictive market analysis, automated research insights, and dynamic hedging strategies.
Banks are also beginning to investigate tokenized financial products, with 51% of respondents evaluating opportunities in digital asset custody, token issuance platforms, and blockchain-based transaction systems. These technologies could create new revenue streams while reducing transaction costs in areas such as securities settlement and collateral management.
Governance and Trust in AI
While artificial intelligence has become a central component of banking innovation strategies, the report highlights governance challenges that could limit its widespread adoption.
Only 26% of banks currently operate with centralized AI governance frameworks, according to the survey. Without clear oversight structures, technology teams and business units may be hesitant to automate mission-critical processes or deploy AI systems at scale.
Client trust also remains an important consideration. Many corporate customers remain cautious about relying on AI-generated financial insights or automated decision-making tools. The report finds that 89% of clients express concerns about the reliability and transparency of AI outputs in banking services.
Building confidence in these technologies will require banks to implement stronger governance standards, improve model transparency, and ensure clear accountability for automated decisions.
Cultural and Talent Challenges
Technology alone will not determine whether corporate and investment banks can remain competitive in the evolving financial landscape. Organizational culture and workforce skills are also critical factors.
The report suggests that 39% of banking executives believe a conservative corporate culture slows experimentation with new technologies. Large financial institutions often prioritize stability and risk management—essential qualities for regulated businesses—but this can also make rapid innovation more difficult.
At the same time, banks face challenges in developing the specialized talent required to support advanced technology initiatives. Around 40% of surveyed organizations say they plan to recruit external specialists to strengthen their AI capabilities, while only 23% are focusing primarily on reskilling their existing workforce.
This imbalance could create long-term workforce challenges if banks fail to develop internal expertise in emerging technologies.
Building the Future Banking Ecosystem
To remain competitive, the report concludes that corporate and investment banks will need to adopt a more disciplined and integrated approach to innovation. This includes modernizing their core technology infrastructure, strengthening AI governance, and forming strategic partnerships with fintech companies and technology providers.
Developing enterprise-grade digital platforms capable of supporting advanced analytics, automation, and real-time financial services will be essential. Banks must also focus on delivering seamless client experiences by integrating their services directly into corporate finance systems and operational workflows.
Equally important is maintaining the trust and regulatory credibility that traditional banks have built over decades. By combining technological innovation with strong governance and transparency, financial institutions can differentiate themselves from newer market entrants.
The World Corporate and Investment Banking Report 2026 is based on insights from 750 senior executives representing corporate and investment banks, large corporations, and non-bank financial institutions with annual revenues exceeding $1 billion. The research aims to provide a comprehensive view of the evolving financial services ecosystem and the strategic challenges facing global banking institutions.
As competition intensifies and technology continues to reshape financial services, the report suggests that banks must move quickly to transform their operations, strengthen client relationships, and deliver the digital capabilities that modern businesses now expect. Institutions that successfully adapt to these changes may unlock new opportunities for growth, while those that move too slowly risk losing ground to more agile competitors in the rapidly evolving financial marketplace.
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