Cloud adoption, generative AI, cybersecurity, automation, and customer experience are reshaping the financial services industry. As banking, insurance, and wealth management organizations face rapid change, staying ahead means understanding both the emerging trends and the strategic priorities driving transformation.
The financial services landscape is undergoing a constant evolution, driven by new technology, changing customer expectations, and increasing regulatory demands. To gain deeper insights into the industry's direction, Alithya conducted its annual research and report with top-tier professionals from the banking, insurance, and wealth management sectors.
The findings reveal both exciting opportunities and pressing challenges. While each sector has unique needs, several clear trends have emerged across the board: the ongoing push toward cloud adoption, the rising potential (and risks) of generative AI, and an accelerating investment in operational efficiency through automation and intelligent technologies. These themes are not only reshaping how financial institutions operate, but they are defining the future of the industry.
Key insights shaping financial services transformation in 2025
Alithya’s latest survey uncovered five priority areas that are actively reshaping the financial services industry. Spanning sectors such as banking, insurance, and wealth management, these insights reveal the leading drivers of digital transformation and the key barriers to innovation that institutions must overcome to stay competitive.
- Cloud journey: 75% of financial services professionals are either just beginning or still in the process of their cloud journey. Despite its well-documented benefits—scalability, agility, cost optimization—the transition remains complex and gradual in this highly regulated sector.
- Security concerns: Nearly 70% of respondents cited security as the top barrier to application modernization and broader cloud migration efforts.
- Generative AI: 44% of respondents ranked cybersecurity as their top concern when adopting generative AI.
- Talent gap: Nearly 50% of respondents are prioritizing upskilling their current workforce, while about 25% are planning to hire new employees with the necessary skills.
- Operational efficiency: Close to 60% of respondents said automation and intelligent document processing (IDP) will be major investment areas for modernizing banking processes, insurance workflows, and wealth advisory operations.
Keep reading to explore how these trends are shaping strategic decisions across the industry, and what your organization can do to stay ahead. For a deeper dive into sector-specific data and detailed recommendations, download the full report here.
Cloud transformation: balancing strategic gains and security risks
Cloud migration is no longer a question of if, but when and how fast. Our survey found that 75% of financial services professionals are either just beginning or still in the process of their cloud journey. Despite years of discussion about the benefits of cloud - agility, scalability, and cost optimization - many organizations have yet to realize its full potential.
The reason? Security. Nearly 70% of respondents cited it as the top barrier to application modernization and cloud adoption. In highly regulated industries like banking and insurance, this is hardly surprising. Cloud security is complex, and concerns around data privacy, compliance, and third-party risk can slow progress.
However, these challenges are not insurmountable. By adopting a robust cloud governance model and working with experienced partners who understand both the technical and regulatory landscape, financial institutions can mitigate risks and unlock the strategic benefits of the cloud. For example, hybrid cloud models can help balance control and flexibility, while zero-trust architectures can enhance overall security posture.
Generative AI: navigating opportunities with confidence
One of the most compelling developments in financial services is the rise of generative AI. Tools like large language models and AI copilots have the potential to revolutionize everything from customer service and fraud detection to risk assessment and financial planning. But that excitement comes with a healthy dose of caution.
According to our survey, 44% of respondents ranked data security as their top concern when adopting generative AI. That concern is well-founded—AI systems that ingest and process vast amounts of sensitive data can introduce new vectors for data leakage, model bias, and regulatory non-compliance.
To move forward with confidence, institutions must take a “security-first” approach to AI adoption. That means implementing AI governance frameworks that address data privacy, auditability, and ethical use. It also means choosing technologies and partners that prioritize secure AI integration within cloud services and alignment with strict compliance standards.
As generative AI becomes more deeply embedded in business operations, institutions must also ensure that their teams are trained to manage AI outputs responsibly. Building trust in these tools—internally and externally—will require strong oversight, continuous testing, and collaboration across technical and legal teams.
The key takeaway: Generative AI offers incredible potential, but only if financial organizations build the right foundation—one rooted in trust, transparency, and compliance.
Addressing the talent gap in financial services
The financial services sector is grappling with a talent shortage that hinders its digital transformation efforts, with nearly 50% of respondents prioritizing upskilling their current workforce and about 25% planning to hire new employees with the necessary skills. Some organizations are also considering bringing in external experts or using more automation tools to fill the skill gaps.
To successfully implement digital transformation, financial services firms need employees with specific expertise. This includes operational specialists to manage new systems and change management experts to guide the transformation process. Additionally, digital adoption solutions are crucial to maintain progress and assist users with new technologies.
The stakes are high. Talent gaps can slow modernization efforts in core banking systems, hinder the replacement of legacy systems, and reduce the institution’s ability to meet real-time service expectations. With customer demands evolving rapidly, building skilled, agile teams becomes essential to sustaining a high-quality customer experience.
Deciding whether to upskill existing employees or hire externally depends on the organization's unique needs. Upskilling is particularly advantageous for roles that require a deep understanding of the company's processes and culture. Identifying talent requirements early in the transformation process ensures that the right skills are available to support the initiative.
By addressing the talent gap, financial institutions can better navigate future challenges and opportunities.
Automation as a cornerstone of digital transformation
Another trend that stood out in our research is the growing focus on operational efficiency, particularly through automation and intelligent document processing (IDP). Close to 60% of respondents said this is one of their biggest areas of investment.
The need for efficiency is especially acute in industries burdened by legacy systems, manual workflows, and paper-heavy processes. Whether it’s accelerating claims processing in insurance, streamlining loan origination in banking, or simplifying onboarding in wealth management, automation is a game-changer.
IDP, powered by AI and machine learning, can dramatically reduce turnaround times, improve accuracy, and free up staff for higher-value work. This not only cuts costs but also enhances the customer experience—a key differentiator in today’s digital-first world.
To capture these gains, organizations must integrate automation into a broader transformation strategy. This includes aligning with cloud infrastructure, ensuring data quality, and training teams to manage and evolve automated workflows over time.
As the pressure to deliver fast, secure, and seamless services grows, automation becomes not just a competitive advantage, but a necessity. When done right, it leads to lasting customer satisfaction, streamlined operations, and improved regulatory compliance—solidifying the foundation for long-term resilience.
Empowering financial services with trusted digital transformation partners
The trends uncovered in our survey make it clear: financial services organizations are at a pivotal moment. Cloud, AI, and automation are no longer emerging technologies—they’re critical capabilities. But to leverage them successfully, institutions need to break down internal silos, modernize their legacy infrastructure, and adopt a more agile and secure operating model.
This is where Alithya comes in.
As a trusted partner to financial services institutions across North America, Alithya combines deep industry expertise with advanced technology solutions to drive transformation at scale. Whether you're starting your cloud migration, evaluating AI use cases, or looking to modernize core systems, our team can help you navigate complexity and accelerate outcomes. Our solutions are designed with security, compliance, and long-term value in mind—because we understand what’s at stake.
We also help organizations unify their cloud platforms, streamline operations, and build the internal capabilities needed to sustain innovation. With Alithya, you're not just investing in technology, you're investing in a proven partner committed to your success in an evolving digital economy.
Let’s accelerate your financial services transformation together
If you have any questions or would like to speak to an expert about how Alithya can support your financial services transformation, please reach out to us. Our team is here to help you achieve your goals and stay ahead in this rapidly evolving industry.
Get the full report
This blog only scratches the surface of the insights we uncovered. To explore all the findings, including sector-specific trends, investment priorities, and actionable recommendations, you can download the full report here: Alithya Financial Services Survey Report.