85% of Banks’ Corporate Clients Plan to Engage With a Non-Bank Financial Institution Within the Next Year as Competition With Private Capital Intensifies

85% of banks’ corporate clients plan to engage with a non-bank financial institution within the next year as competition with private capital intensifies

• Banks look to bolster AI expertise with external hires (40%) as upskilling proves challenging

• Only 29% of IT budgets are currently directed to transformative technologies

• Corporate Investment Banks executives bet on tokenized products (51%) to improve performance

Corporate and investment banks (CIBs) are facing intense competition from non‑bank financial institutions, as client expectations rise and technology initiatives fail to deliver the anticipated benefits, according to the Capgemini Research Institute’s inaugural World Corporate and Investment Banking Report 2026. The research shows that 85% of corporate clients plan to engage with a non-bank financial institution within the next 12 months, in search of faster, more transparent, and responsive services.

CIB clients say they expect real-time responsiveness (58%), personalized engagement (49%), and innovative solutions (40%) – but less than one-in-four (23%) find CIBs currently meet those needs. Instead, many flag that CIBs offer limited integration with ERP and treasury systems forcing manual workarounds (92%), display a lack of personalization and flexibility (89%), and insufficient advanced analytics and forecasting capabilities (68%).

Adding to their challenges, CIB executives report that current innovation programs are not delivering the expected results. A vast majority (82%) say these efforts are not producing improved revenue via new products, while 51% of respondents say they did not deliver the expected cost savings.

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As client expectations rise, banks are finding they have limited capabilities to respond. Executives say that only 29% of their IT budgets are currently directed to transformative technologies, while 43% goes towards running and maintaining legacy systems. In addition, 61% of CIB executives say they are constrained by high compliance costs.

The findings come as Capgemini analysis shows CIB revenue growth is decelerating, with a forecasted 5.4% compound annual growth rate (CAGR) over the next five years – down from 6.5% between 2022 and 2024.

Despite structural headwinds, banks are continuing to broaden their product and service portfolios to remain competitive. CIB executives are prioritizing real-time treasury capabilities for cross-border payment flows (77%) and next-generation AI market products for algorithmic trade execution, such as AI-driven hedging, and research insights (65%). More than half are exploring tokenized products (51%) to unlock new fee streams through digital custody, token issuance, and premium services.

“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,” said Catherine Chedru-Refeuil, Global Head of Corporate and Investment Banking at Capgemini. “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.”

Fostering CIB innovation through technology and company culture
According to the report, CIBs will need to move on multiple fronts simultaneously to adapt to competitive pressures. Banks must take a critical look at their operating models to deliver a smoother client journey, rebuild their data and technology foundations to improve speed and embed AI governance into all major decisions. Equally important is client trust that CIBs have earned through decades of regulatory accountability – but remains a pressing challenge when it comes to AI-driven innovation. Many clients (89%) question the reliability of AI-generated outputs in banking services, underscoring why transparency is key to earning their confidence.

Implementing these changes will require more than technology. The report shows that cultural issues can be a meaningful obstacle to AI adoption – 39% of those surveyed said a conservative culture slows down experimentation with new technologies. In addition, banks are struggling to upskill their employee base – 40% of those surveyed said they were looking to hire external talent to boost their AI capabilities, while only 23% are investing in internal reskilling.

The World Corporate and Investment Banking Report 2026 draws on the perspectives of 750 senior executives across corporate and investment banks, large corporations and non-bank financial institutions with annual revenues of USD $1 billion or more.

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