Corporate and investment banks are under growing competitive pressure as corporate clients increasingly consider alternatives outside the traditional banking sector, according to new research.
It shows that 85% of corporate clients expect to engage a non-bank financial institution within the next year as they seek faster, more transparent and responsive financial services. Rising expectations are creating a widening gap between what clients want and what many banks can deliver.
The Capgemini Research Institute’s inaugural World Corporate and Investment Banking Report 2026
indicates that 58% of corporate clients expect real-time responsiveness, 49% want more personalised engagement and 40% are looking for innovative solutions. But just 23% of respondents believe banks currently meet these needs.
Clients also highlighted persistent operational pain points, including limited integration with enterprise resource planning and treasury systems, which 92% say forces manual workarounds. Meanwhile, 89% cite a lack of flexibility and personalisation, and 68% point to insufficient advanced analytics and forecasting capabilities.
Bank leaders themselves acknowledge that technology transformation programmes are not yet producing the anticipated gains. Some 82% say innovation initiatives have failed to generate new revenue streams, while just over half — 51% — report that expected cost reductions have not materialised.
Budget constraints remain a central challenge. Executives say only 29% of IT spending is currently directed towards transformative technologies, with 43% still devoted to maintaining legacy systems. High compliance costs are also weighing on strategic change, cited by 61% of respondents.
These pressures are emerging as growth prospects soften. Capgemini analysis forecasts corporate and investment banking revenues will expand at a 5.4% compound annual growth rate over the next five years, down from 6.5% recorded between 2022 and 2024.
Despite the headwinds, banks are seeking new ways to strengthen competitiveness. A majority of executives are prioritising real-time treasury capabilities for cross-border payments, while 65% are focusing on next-generation AI-enabled market solutions such as algorithmic trading tools and research insights.
More than half are exploring tokenised products, including digital custody and token issuance, as potential sources of new fee income.
However, talent shortages are complicating the shift towards more advanced technology adoption. Four in 10 executives say they plan to recruit external specialists to enhance AI capabilities, as internal upskilling initiatives prove difficult. Only 23% are investing in reskilling their existing workforce.
“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.”
The report suggests banks must address both technological and cultural barriers to innovation. Nearly 39% of respondents say conservative organisational cultures are slowing experimentation with emerging technologies. At the same time, trust remains a key factor in client relationships, with 89% of corporates questioning the reliability of AI-generated outputs in banking services.
Capgemini concludes that institutions will need to modernise operating models, rebuild core data and technology foundations, and embed robust AI governance to navigate intensifying competition. Maintaining long-standing client trust while delivering scalable innovation is likely to be critical as the sector approaches what the report describes as a pivotal inflection point.
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