The cautious optimism from two years ago has been replaced with an urgent drive for progress and results.
As new AI models send shockwaves through financial markets, Bitcoin ETFs routinely turn over billions in average daily volume, and cybersecurity becomes a global mandate, financial services firms can no longer afford half-measures or indecision over where to place their bets.Most are already heavily invested in digital transformation initiatives. Now that they have started to reach a critical mass, new real-world challenges and opportunities are beginning to reveal themselves.
Our 2025 Digital Transformation & Next-Gen Technology Study delves into these challenges and opportunities, capturing insights from more than 500 financial services technology and operations leaders.
Key findings from the study
1. Data strategy is the X-factor
As firms venture deeper into their digital transformation journeys, they are finding that a robust data management strategy has the power to unlock new opportunities while data silos and fragmented technology bolt-ons have become the enemies of progress. When asked what they would prioritize if they had a “magic wand” to accelerate progress, top responses focused on data harmonization and cybersecurity. However, while 58% of firms acknowledge the importance of a clear data strategy, nearly half (47%) still struggle with breaking down data silos, and 40% report ongoing data quality issues. Without a seamless, connected approach to data, firms risk limiting the effectiveness of their technology investments.
2. GenAI proves its place
Generative AI (GenAI) is quickly becoming a game-changer for financial firms. Overall, 72% of firms are making moderate to large investments in GenAI this year, up from 40% in 2024. More than two-thirds (68%) of financial services professionals believe the greatest impact GenAI will have is on employee productivity; the primary reasons firms are implementing GenAI tools are to reduce costs/improve efficiency (29%), improve customer experience (28%), and improve employee experience (19%). When it comes to ROI, 35% of firms expect to start seeing their GenAI investments pay off within six months. For many firms, however, it will take quite a bit longer to see that ROI: 33% believe it will take one-to-two years before they start getting a payback on their GenAI investments.
3. Digital assets go mainstream
Blockchain and digital assets are no longer niche investments. The study found that 71% of firms are making major investments in blockchain and distributed ledger technologies (DLT) this year, a significant jump from 59% in 2024. At the same time, 64% are increasing their cryptocurrency investments, up from 51% last year. These trends indicate a shift toward greater adoption of digital assets as firms explore new ways to leverage decentralized finance, smart contracts, and tokenization.
4. Cybersecurity: A non-negotiable priority
As firms embrace new digital capabilities, the threat landscape continues to evolve. The study reveals that 66% of financial firms are significantly increasing investments in cybersecurity to protect sensitive data and maintain regulatory compliance. With cyber threats becoming increasingly sophisticated, businesses must prioritize resilience strategies, threat detection, and advanced security technologies.
Firms keep pushing through the pain
Financial firms are far from experiencing the growing pains and incremental setbacks that come from overhauling legacy systems and incorporating new operating models—all while the technology, regulatory, and macroeconomic backdrop keeps evolving every day.
The 2025 Digital Transformation & Next-Gen Technology Study offers a roadmap for success, highlighting the most effective approaches, the areas receiving the most investment, and the biggest obstacles firms must overcome.