CIBs Face Rising Challenges Amid Competitive Pressures and Client Demands
Capgemini's 2026 report highlights that corporate and investment banks are facing stiff rivalry from non-bank entities. Client expectations for technology integration and innovation are unmet, causing a shift toward non-bank services. Limited IT budgets and high compliance costs hamper CIBs in meeting evolving client needs and improving service delivery.
- Country:
- India
Corporate and investment banks are grappling with intensified competition from non-bank financial institutions, as highlighted by Capgemini's World Corporate and Investment Banking Report 2026. The report reveals that a substantial 85% of corporate clients plan to engage with non-bank entities within the next year, driven by a desire for faster and more transparent services.
The study indicates a mismatch between client expectations and current CIB service offerings. Clients seek real-time responsiveness, personalized engagement, and innovative solutions; however, a mere 23% find that CIBs adequately meet these needs. Many clients criticize CIBs for their limited integration with ERP and treasury systems and lack of personalization and advanced analytics.
Compounding these challenges is the revelation from CIB executives that current innovation initiatives have underperformed. Despite substantial investments, transformative technologies receive only a fraction of IT budgets, with legacy systems consuming larger portions. Additionally, compliance costs remain a significant burden, further straining resources. Reports of decelerating revenue growth compound the urgency for CIBs to enhance their service portfolios to maintain competitiveness.
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