Dubai: A global survey conducted by FT Longitude and SAS reveals that 75% of banks plan to increase investment in risk technology infrastructure to navigate ongoing economic and financial challenges.
The survey, conducted in October 2024, gathered insights from 300 senior banking risk executives across 25 countries. The findings were published on March 10, 2025, in Dubai, UAE.
The report, Transforming Risk Management, is a follow-up to a similar 2021 study. It highlights a sharp rise in banks’ prioritization of risk management technology investments due to heightened macroeconomic risks, regulatory complexities, and financial uncertainties.
Key findings from the report include:
- 75% of banks plan to invest in risk technology (up from 51% in 2021).
- 64% of banks will increase spending on third-party software (vs. 43% in 2021).
- 65% of banks aim to engage third-party consultancy services (15% increase from 2021).
- 67% of banks prioritize risk modeling for regulatory compliance and automation.
- Adoption of AI and generative AI remains limited due to a lack of skilled talent.
- 77% of banks plan to invest in integrated balance sheet management (IBSM) for better liquidity and credit risk assessment.
The banking sector faces increasing economic instability following the coronavirus pandemic. Since 2023, eight banks have collapsed due to rising interest rates and liquidity risks. Inflation, geopolitical tensions, and regulatory shifts further complicate risk management.
Banks now focus on advanced analytics and AI to enhance resilience and maintain financial stability.
