Paris: Corporate investment banks are facing intensifying competition from non-bank financial institutions as client expectations rise and technology initiatives struggle to deliver expected benefits, according to the World Corporate and Investment Banking Report 2026 released by the Capgemini Research Institute.
The report reveals that 85% of corporate banking clients plan to engage with a non-bank financial institution within the next 12 months, highlighting growing pressure on corporate investment banks to improve speed, transparency, and service responsiveness.
Client expectations outpace current capabilities
According to the study, corporate clients increasingly expect real-time responsiveness, personalized engagement, and innovative financial solutions.
Specifically, 58% of clients expect real-time responsiveness, 49% seek personalized engagement, and 40% demand innovative solutions.
However, fewer than one in four respondents (23%) believe Corporate Investment Banks currently meet these expectations.
Clients also reported operational limitations such as limited integration with ERP and treasury systems, forcing manual workarounds for 92% of organizations.
Additionally, 89% of clients cited a lack of personalization and flexibility, while 68% highlighted insufficient advanced analytics and forecasting capabilities offered by corporate investment banks.
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Innovation programs failing to deliver results
Despite significant investments in innovation initiatives, many executives within Corporate Investment Banks say these programs have not produced the expected outcomes.
According to the report, 82% of executives indicated that innovation initiatives have not generated improved revenue through new products, while 51% said they have not achieved the anticipated cost savings.
These findings highlight structural challenges within corporate investment banks as they attempt to modernize operations and compete with agile financial technology players.
Legacy systems and compliance costs limit transformation
The report also indicates that Corporate Investment Banks face internal constraints that slow technological transformation.
Executives noted that only 29% of IT budgets are currently allocated to transformative technologies, while 43% of budgets are dedicated to maintaining legacy systems.
Additionally, 61% of executives said high compliance costs limit their ability to innovate, further complicating efforts by Corporate Investment Banks to modernize operations and enhance client experiences.
Revenue growth forecast slows
Analysis by the Capgemini suggests that growth in the corporate and investment banking sector is slowing. The report forecasts a compound annual growth rate (CAGR) of 5.4% over the next five years, down from 6.5% recorded between 2022 and 2024.
Despite these headwinds, Corporate Investment Banks are expanding their product and service offerings in an effort to remain competitive in a rapidly evolving financial ecosystem.
Corporate Investment Banks explore AI, Real-Time Treasury and Tokenized Products
To strengthen their market position, executives at Corporate Investment Banks are prioritizing several emerging technologies and capabilities.
According to the report, 77% of executives are prioritizing real-time treasury capabilities to support cross-border payment flows, while 65% are focusing on next-generation AI-based market products, including AI-driven hedging, algorithmic trade execution, and research insights.
Meanwhile, 51% of executives said they are exploring tokenized financial products to unlock new revenue opportunities through digital custody, token issuance, and premium services.
Governance challenges slow AI adoption
Catherine Chedru-Refeuil, Global Head of Corporate and Investment Banking at Capgemini, said:
“Non-banks are closing the competitive gap with established corporate and investment banks. Client demands have shifted dramatically, and while CIBs have invested heavily in AI, many are struggling to move beyond the pilot stage. A key reason is governance – only 26% of banks operate with centralized AI oversight, making teams hesitant to automate crucial business processes.
To succeed, CIBs must adopt a disciplined approach: creating enterprise-grade platforms and cultivating an ecosystem of trusted partners. Early adopters will see tangible benefits in the form of deeper client engagement, improved fee income, and materially lower costs.”
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Culture and trust emerge as barriers to AI innovation
The report highlights that beyond technological upgrades, Corporate Investment Banks must address organizational and cultural challenges to accelerate innovation.
Many corporate clients remain cautious about AI-driven financial services, with 89% expressing concerns about the reliability of AI-generated outputs in banking environments. This underscores the importance of transparency and trust for Corporate Investment Banks deploying AI technologies.
Internally, 39% of executives reported that conservative organizational cultures slow experimentation with emerging technologies.
Talent development is another concern, with 40% of banks planning to hire external experts to strengthen AI capabilities, while only 23% are investing in internal reskilling programs.
Research methodology
The World Corporate and Investment Banking Report 2026 draws on insights from 750 senior executives representing corporate and investment banks, large corporations, and non-bank financial institutions with annual revenues exceeding USD $1 billion.
