🏢 Challenges for Organisations

Key Issues

• ›Scaling generative AI from pilots to production
• ›Legacy system modernisation blocking digital transformation
• ›Building responsible AI governance frameworks
• ›Talent shortage for AI/ML engineering roles

Impact

Firms spending $50B+ on AI in 2026 but struggling with ROI measurement. Legacy core banking systems (avg age 25+ years) create integration bottlenecks. Regulatory uncertainty around AI decision-making in lending and insurance.

Key Issues

• ›Ransomware attacks targeting financial infrastructure
• ›Third-party/supply chain risk management
• ›Operational resilience regulations (DORA, CPS 230)
• ›Quantum computing threats to encryption

Impact

Average cost of a financial data breach: $6.1M (2025). APRA CPS 230 enforcement begins July 2025, requiring demonstrated operational resilience. 62% of FSOs report increased third-party cyber incidents.

Key Issues

• ›Anti-money laundering (AML) reform and transaction monitoring
• ›Consumer Data Right (CDR) / Open Banking expansion
• ›Climate risk disclosure mandates (ISSB, TCFD)
• ›Cross-border regulatory fragmentation

Impact

Compliance costs consume 6–10% of revenue for major banks. New AML/CTF Act reforms in Australia require real-time transaction monitoring. ESG reporting requirements expanding across APAC jurisdictions.

Key Issues

• ›Neo-banks and fintechs capturing younger demographics
• ›Embedded finance eroding traditional revenue streams
• ›Hyper-personalisation expectations vs privacy constraints
• ›Branch network rationalisation

Impact

Digital-only banks grew deposits 40% YoY in 2025. Buy-now-pay-later and embedded lending diverting $180B from traditional credit. 73% of customers expect personalised offers but only 28% trust banks with their data.

Key Issues

• ›Hybrid work model optimisation
• ›Reskilling workforce for AI-augmented roles
• ›Competing with Big Tech for engineering talent
• ›Diversity, equity and inclusion targets

Impact

45% of banking roles expected to be significantly augmented by AI by 2028. Attrition rates for tech roles in FSI: 22% (vs 15% industry avg). $2.4B spent on reskilling programs across top 20 global banks.

Key Issues

• ›Climate risk stress testing and scenario modelling
• ›Transition finance for high-emitting sectors
• ›Greenwashing liability and regulatory scrutiny
• ›Nature-related financial disclosures (TNFD)

Impact

Central banks requiring climate stress tests across G20. $4.3T investment needed annually for net-zero transition. Greenwashing enforcement actions increased 300% from 2023–2025.