Capgemini Report Finds Corporate and Investment Banks Struggling to Meet Client Expectations as Non-Bank Competition Grows

Capgemini Report Finds Corporate and Investment Banks Struggling to Meet Client Expectations as Non-Bank Competition Grows

(IN BRIEF) Capgemini’s inaugural World Corporate and Investment Banking Report 2026 highlights significant challenges facing corporate and investment banks as competition from non-bank financial institutions intensifies and client expectations evolve. The research shows that 85 percent of corporate clients plan to engage with non-bank providers within the next year as they seek faster, more transparent and more personalized financial services. However, only 23 percent of clients believe traditional banks currently meet these expectations, citing limited system integration, lack of flexibility and insufficient analytics capabilities. The report also finds that many innovation initiatives are failing to deliver tangible benefits, with 82 percent of banking executives reporting no revenue gains from new products and 51 percent seeing no expected cost reductions. Technology investment priorities remain another constraint, with only 29 percent of IT budgets directed toward transformative technologies while legacy systems continue to consume a large share of resources. To remain competitive, banks are investing in real-time treasury solutions, AI-driven trading tools and tokenized financial products that could open new revenue streams. At the same time, talent shortages, governance challenges and cultural resistance to experimentation continue to slow progress. The report concludes that corporate and investment banks must modernize technology platforms, strengthen AI governance and foster a more innovative culture to successfully compete in a rapidly changing financial landscape.

(PRESS RELEASE) PARIS, 16-Mar-2026 — /EuropaWire/ — Capgemini has released its first-ever World Corporate and Investment Banking Report 2026, revealing that corporate and investment banks (CIBs) are facing mounting competitive pressure from non-bank financial institutions as client expectations continue to evolve and technology investments struggle to deliver their intended impact.

The study shows that competition from alternative financial providers is intensifying, with 85 percent of corporate clients planning to engage with a non-bank financial institution within the next year. Many companies are seeking faster, more transparent and more responsive services, highlighting a growing shift in expectations within the financial services sector.

Corporate clients say they are increasingly looking for financial partners capable of providing real-time responsiveness, cited by 58 percent of respondents, along with personalized engagement and innovative financial solutions. However, only 23 percent believe corporate and investment banks currently meet these expectations. Many respondents also pointed to operational shortcomings such as limited integration with enterprise resource planning and treasury systems, which 92 percent say forces businesses to rely on manual processes. In addition, 89 percent report insufficient flexibility and personalization, while 68 percent highlight gaps in advanced analytics and forecasting capabilities.

The report also suggests that banks’ internal innovation programs are struggling to deliver measurable outcomes. Eighty-two percent of banking executives say innovation initiatives have not resulted in increased revenue through new product development, and more than half report that expected cost efficiencies have not materialized.

One factor contributing to these challenges is the allocation of technology investment. According to the research, only 29 percent of IT budgets in corporate and investment banks are currently directed toward transformative technologies, while 43 percent continues to be spent on maintaining legacy systems. Compliance requirements also remain a major constraint, with 61 percent of executives identifying regulatory costs as a significant barrier to transformation.

Capgemini’s analysis also indicates that growth in the sector may slow over the coming years. Corporate and investment banking revenues are expected to grow at a compound annual growth rate of 5.4 percent over the next five years, compared with 6.5 percent growth recorded between 2022 and 2024.

Despite these challenges, many institutions are expanding their service offerings to remain competitive. Executives say they are focusing on real-time treasury capabilities to support cross-border payment flows, with 77 percent identifying this as a key priority. In addition, 65 percent are developing next-generation AI-based market tools to support activities such as algorithmic trade execution, AI-driven hedging strategies and automated research insights.

Another area gaining momentum is the development of tokenized financial products. More than half of the executives surveyed say they are exploring tokenization to create new sources of revenue, including digital asset custody, token issuance and premium digital financial services.

Catherine Chedru-Refeuil said the research highlights how competitive dynamics in corporate banking are rapidly evolving. She noted that while many banks have invested heavily in artificial intelligence, progress has often stalled at the pilot stage due in part to governance challenges. Only 26 percent of institutions currently operate with centralized oversight for AI initiatives, which can limit confidence in automating critical financial processes.

According to the report, banks will need to modernize their operating models and rebuild their technology foundations to remain competitive. Strengthening data infrastructure, improving speed and embedding AI governance into strategic decision-making are seen as essential steps toward delivering more responsive client services.

Client trust remains another critical factor. Although banks benefit from decades of regulatory accountability, many corporate clients remain cautious about AI-driven financial services. The research shows that 89 percent of clients question the reliability of AI-generated insights within banking, highlighting the importance of transparency in maintaining trust.

The report also emphasizes that organizational culture can slow technological progress. Nearly 39 percent of executives surveyed say conservative internal cultures limit experimentation with emerging technologies. At the same time, banks are struggling to build the talent base needed to implement advanced technologies. Forty percent of executives say they are seeking external hires to strengthen AI expertise, while only 23 percent report focusing on reskilling existing employees.

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 across the Americas, Europe and Asia-Pacific.

Read the full report: The great inflection point: Why CIBs must pivot now to adapt to the new paradigm

About Capgemini

Capgemini is an AI-powered global business and technology transformation partner, delivering tangible business value. We imagine the future of organizations and make it real with AI, technology and people. With our strong heritage of nearly 60 years, we are a responsible and diverse group of over 420,000 team members in more than 50 countries. We deliver end-to-end services and solutions with our deep industry expertise and strong partner ecosystem, leveraging our capabilities across strategy, technology, design, engineering and business operations. The Group reported 2025 global revenues of €22.5 billion.

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About the Capgemini Research Institute

The Capgemini Research Institute is an in-house think tank focused on digital, innovation, and technology issues, including their impact on banks, wealth management firms, payments players and insurers. The Institute annually publishes its signature Financial Services World Reports series that draw on voice of the customer surveys, CxO interviews, and partnerships with technology companies as well as academia to uncover emerging trends and explore how AI, cloud, data, and digitalization are driving transformative business outcomes. Supported by time-series global datasets, our industry experts offer actionable insights, trend analyses, and innovative solutions to address the dynamic challenges of financial institutions in a fast-changing global economy.

Media Contact:

Fahd Pasha
Tel.: +1 647 860 3777
Fahd.Pasha@capgemini.com

SOURCE: Capgemini