As Matt Slonaker, I’ve delved deeply into the insights from PwC’s 28th Annual Global CEO Survey, conducted between October and early November 2024 with 4,701 CEOs across 109 countries, and it’s evident we’re at a transformative crossroads where reinvention is no longer optional—it’s essential for survival and prosperity in the banking and financial services sector. The survey reveals a landscape rich with opportunity yet fraught with challenges. Generative AI (GenAI) is delivering early wins, with one-third of CEOs reporting increased revenue and profitability over the past year, and 49% anticipating further profitability gains in the next 12 months. Climate-friendly investments are also proving lucrative, with a third of leaders noting revenue growth from the past five years’ efforts and two-thirds experiencing cost reductions or stability. However, progress is sluggish—only 7% of revenue, on average, comes from new businesses added in the last five years, hindered by leadership inertia, flawed decision-making, and limited resource reallocation. This gap between potential and action is where Firstsource’s unBPO—unified Business Process Optimization—model emerges as a powerful catalyst, tailored to address the unique demands of banking and financial services.

The survey highlights GenAI’s impact, with 56% of CEOs noting efficiency gains in employee time usage and 32% and 34% reporting revenue and profitability increases, though these fall slightly short of last year’s expectations. Trust remains a hurdle, with only 33% of CEOs expressing high confidence in embedding AI into key processes, and just a third planning to integrate it into workforce skills over the next three years. In banking, where precision and compliance are paramount, Firstsource’s unBPO leverages AI-driven automation, advanced analytics, and a human-centered approach to embed GenAI into workflows, risk management systems, and customer service platforms. We reengineer processes to enhance profitability, ensure regulatory adherence, and boost scalability, while addressing trust through responsible AI practices—mitigating risks like inaccurate outputs or bias, which are critical in financial decision-making. This aligns with the survey’s call for systematic data readiness and workforce upskilling, positioning banks to lead in areas like fraud detection and personalized financial advice.

Sustainability is another key trend, with climate investments yielding a six-to-one revenue increase-to-decrease ratio, notably in regions like China where 60% of CEOs report gains. In banking, where ESG (Environmental, Social, Governance) pressures are mounting, Firstsource’s unBPO optimizes resource use and energy consumption—tackling the “energy trilemma” of reliability, emissions reduction, and cost efficiency. We support the development of green financial products, such as sustainable loans or carbon-neutral investment portfolios, and implement data strategies for ESG reporting, turning sustainability into a profit driver. This resonates with the survey’s finding that one-third of companies are already generating revenue from climate initiatives, a trend set to grow as global decarbonization accelerates.

The survey also signals industry reconfiguration, with 40% of CEOs entering new sectors and 42% believing their current models won’t survive a decade. In banking, this means opportunities in fintech, insurance, or payment solutions, yet the sector’s reinvention lags, with only 7% of revenue from new businesses—though regions like the Middle East and China reach 10% or more. Barriers like weak decision-making (only half use best practices to counter bias) and low resource reallocation (half move 10% or less annually) stifle progress. Firstsource’s unBPO breaks silos, fosters cross-sector partnerships (e.g., with insurtech or digital payment providers), and enables agile resource shifts—driving a 2% margin boost, as the survey links reallocation to profitability. This agility helps banks enter new markets with the nimbleness of smaller firms, pushing revenue from new ventures higher.

The survey’s 60% optimism about global economic growth (up from 38% last year) contrasts with risks like macroeconomic volatility, a top threat in banking. Regional disparities—German CEOs’ pessimism versus Indian CEOs’ 87% optimism—demand nuanced strategies. The tenure trap, with most CEOs expecting five years or less, further complicates long-term planning, though those with longer horizons drive more reinvention. Firstsource’s unBPO bridges this, offering strategic expertise and execution that outlasts tenures, balancing short-term compliance (e.g., Basel III) with long-term innovation (e.g., AI-driven lending). This aligns with the survey’s call for high-quality decisions and sustained momentum, ensuring banks thrive amid interwoven economic, technological, and competitive forces.

Looking to 2035, the survey suggests the global economy’s future hinges on responses to AI and climate challenges. For banking, this means acting decisively. Firstsource’s unBPO isn’t just keeping pace—it’s redefining the sector. We empower banks to integrate AI responsibly, optimize sustainable operations, and reinvent with purpose. For those lagging, the survey warns it’s not too late, but catch-up requires a systems-level view and execution rigor. With unBPO, we turn that vision into reality, ensuring banks lead the edge of tomorrow.

10 Key Actions and Strategies for Banking and Financial Services

1. Integrate GenAI into Core Operations: Embed generative AI into loan processing, risk assessment, and customer service to boost efficiency and profitability, ensuring compliance with regulatory standards through responsible AI frameworks.
2. Upskill Workforce for AI Adoption: Launch comprehensive training programs to equip employees with AI tool proficiency, focusing on fraud detection and personalized financial advice, addressing the survey’s skills gap concern.
3. Develop Sustainable Financial Products: Introduce green bonds, ESG-compliant investment funds, and carbon-neutral loans, leveraging unBPO to optimize energy use and meet growing investor demand (70% support sustainability spending per the survey).
4. Enhance ESG Data Strategies: Implement robust data systems for real-time ESG reporting, enabling banks to comply with regulations and provide actionable insights, aligning with the survey’s call for sustainability data focus.
5. Forge Cross-Sector Partnerships: Collaborate with fintechs, insurtechs, and payment platforms to enter new markets, using unBPO to streamline integration and reallocate resources dynamically for a competitive edge.
6. Optimize Resource Reallocation: Shift at least 20% of financial and human resources annually to high-priority projects like digital transformation, mirroring the survey’s link between reallocation and 2% higher margins.
7. Strengthen Decision-Making Processes: Adopt best practices—transparent criteria, diverse viewpoints, and outcome-independent evaluation—to counter bias, enhancing strategic moves like market expansion.
8. Invest in Cybersecurity Against Volatility: Bolster defenses against macroeconomic and cyber risks, integrating AI for real-time threat detection, given the survey’s emphasis on volatility as a top threat.
9. Expand into Emerging Markets: Target high-growth regions like India (87% CEO optimism) with tailored financial products, using unBPO’s agility to adapt to local needs and regulations.
10. Adopt a Long-Term Reinvention Mindset: Encourage boards to foster a “through-tenure” perspective, prioritizing AI and sustainability over five years, aligning with the survey’s finding that longer-tenured CEOs drive greater innovation.

With Firstsource’s unBPO, banking leaders can execute these strategies, turning survey insights into actionable growth, ensuring they not only survive but dominate the future financial landscape.