AI tipping point reached as just 2% of financial institutions report no AI use, finds Finastra Research

-  AI, modernization, and rising customer expectations take center stage

- Security investment expected to rise sharply in 2026

- Industry optimism remains high, despite disruption

LONDON, Feb. 10, 2026 /PRNewswire/ -- Financial services has reached a decisive AI tipping point, according to new research from Finastra, a global leader in financial services software. Only 2% of financial institutions now report no use of artificial intelligence, signaling a clear shift from experimentation to execution across the industry.

The Finastra Financial Services State of the Nation 2026 report finds that six in 10 institutions improved their AI capabilities over the past year, with leaders increasingly focused on scaling AI responsibly, securely, and profitably across payments, lending, compliance, and customer engagement.

The research also shows security rising rapidly up the agenda. Institutions expect security investment to increase by an average of 40% in 2026, reflecting growing digital risk, tighter regulatory scrutiny, and deeper reliance on technology across core operations.  

The 2026 research surveyed senior professionals at financial institutions and banks across France, Germany, Hong Kong, Japan, Mexico, Saudi Arabia, Singapore, the UAE, UK, the U.S. and Vietnam.

Key findings include:

• Customer experience becomes the front line. 38% of financial institutions say improved service and more personalized experiences are now their customers' top demand. Only 4% globally report offering no personalized services, highlighting how critical customer experience has become to competitiveness and trust.
• Industry confidence remains high. Despite ongoing disruption, optimism is strong. 87% of respondents expressed high levels of optimism about the opportunities ahead at a personal level, while 86% are optimistic about the outlook for their institutions as technology and operating models continue to evolve.
• AI adoption near universal – with 43% of institutions citing AI as their top innovation lever, it's fast becoming the connective tissue of finance. The top four AI use cases, with institutions either running programs or piloting AI in these areas include: risk management and fraud detection (71%), data analysis and reporting (71%), customer service and support assistants (69%) and document intelligence management (69%). The top three priorities for the year ahead include AI-driven personalization, agentic AI for workflow automation, and AI model governance and explainability.
• Modernization is now a top priority. Nine in ten (87%) respondents plan to invest in modernization over the next 12 months, driven by the need to scale AI, strengthen resilience, and deliver superior customer experience. Partnerships with fintech providers are the default approach for 54% of institutions.
• Cloud adoption underpins modern transformation – Nearly a third (29%) of respondents prioritize cloud adoption, reflecting its role in lowering costs, increasing scalability, and enabling personalization, compliance, and faster innovation.

"Technology decisions now sit at the center of trust, resilience, and customer experience. Institutions are expected to move quickly, but also responsibly, as regulatory scrutiny increases, and customers demand financial services that work reliably, securely, and personally every time," said Chris Walters, CEO at Finastra. "This year's findings show a sector moving decisively beyond experimentation and into execution.

He added: "We look forward to working closely with our customers as strategic partners as they navigate this new landscape with modern, secure and innovative software solutions."

Access the full Finastra Financial Services State of the Nation 2026 report here.

Notes to editors

Survey methodology

• A total of 1,509 managers and executives from banks and financial institutions across 11 regions participated in the survey (including France, Germany, Hong Kong, Japan, Mexico, Saudi Arabia, Singapore, the UAE, UK, the U.S. and Vietnam). Collectively, the organizations represented manage over $100 trillion in assets, equivalent to approximately a quarter of global financial assets based on public estimates. These organizations employ around 5 million staff and serve approximately 400 million client, customer, or member relationships.
• Figures are based on respondent-reported data; percentages may not sum to 100 percent due to rounding and multiple-choice questions.
• The research was conducted by Savanta via an online panel (November 2025).

About Finastra
Finastra is a global leader in financial services software, trusted by 7,000+ customers - including 40 of the world's top 50 banks - in over 110 countries. With expertise in Lending, Payments and Universal Banking, we deliver reliable, scalable, mission-critical solutions such as Loan IQ, LaserPro, Trade Innovation, Essence, Global PAYplus, Payments To Go, and Financial Messaging. Backed by Vista Equity Partners, we co-innovate with customers to build modern technology that helps financial institutions grow with confidence. Visit www.finastra.com or follow Finastra on LinkedIn.

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