Company Announcements

New research highlights disconnect between tech investment and business value, pinpointing key areas for growth

SANTA CLARA, Calif.--(BUSINESS WIRE)--Oct. 7, 2025-- GlobalLogic Inc., a Hitachi Group Company and leader in digital engineering, today released a new report, in partnership with FT Longitude, uncovering critical insights into the state of digital transformation within the financial services sector. The research reveals that despite significant investments, 80% of financial services firms risk falling behind in business model innovation, largely due to fragmented execution and a lack of unified strategy across technology, product, and compliance teams.

The research, which surveyed 750 senior business leaders, identifies a pervasive challenge for financial services leaders: while ambition for digital transformation is high, many organizations struggle to translate these efforts into tangible business value and sustainable growth.

“We undertook this research to better understand why, despite bold ambitions and billions in investment, many digital transformation programs across financial services fail to scale,” said Mike Connors, Senior Vice President and Industry Leader, Financial Services and Consumer, Americas at GlobalLogic. “The data clearly shows that the firms succeeding are those that move beyond siloed initiatives, strategically integrating technology, capital deployment, and organizational adaptability to drive real impact.”

Key Findings from the Report:

The study highlights that most financial services firms have not optimized their digital efforts, and few have formulated a truly unified strategy:

• Limited AI Adoption: Only 52% of firms have adopted Generative AI (GenAI) pilots in just one business function, indicating a slow pace of enterprise-wide integration for this critical technology.
• Siloed Innovation: Less than half (46%) form cross-functional teams from business, product, design, and engineering at the outset of the innovation lifecycle, suggesting a lack of integrated strategy from the ground up. In banking, this drops to just 33%.
• Stagnant Business Models: A mere 20% of firms are actively building advanced new business models, signaling a widespread lag in evolving core revenue streams and customer engagement.

"For the financial services industry, the key challenge is understanding how to leverage newer technologies to do three things: better serve our customers, improve our operational effectiveness and efficiency, and risk mitigation,” said Joe Fuqua, Head of Enterprise Data Frameworks at Truist. “It's really about understanding how to approach those things in a way that's logical and that helps us position for the future; that is the key.”

“Financial services firms are doubling down on digital transformation, with AI, cloud, and automation fast becoming the intelligent foundation of operations. However, translating these investments into business value remains a challenge, as fragmented execution and regulatory pressures slow momentum. The most progressive enterprises are linking technology with innovative business models and broader ecosystem plays, while also reinventing talent and building organizational trust. The future will belong to firms that combine technological foundations, value-driven business models, and regulatory agility into a unified engine of sustainable growth,” said Ronak Doshi, Partner at Everest Group, about the research findings.

Leaders Emerge by Bridging the Gap:

The report identifies a small group of "Leaders" (representing 38% of respondents) who are successfully navigating this landscape. These high-performing firms are growing revenues and excelling in compliance, even amidst market volatility. What sets them apart is their ability to:

• Sustain Strategic Investment : Unlike "Laggards" who often pivot before value is captured, Leaders balance quick wins with long-term investment. Well over half (58%) of Leaders plan to significantly boost their innovation investments, a striking 33-point difference compared to Laggards.
• Embed Adaptability: Leaders treat regulatory agility and talent reinvention as strategic levers, not obstacles. They are twice as likely as Laggards to prioritize AI ethics and model governance. Furthermore, while 71% of C-suite executives see talent as a top barrier to scaling AI, only 27% of their direct reports agree, a disconnect that Leaders actively address.

The report provides actionable recommendations for financial services firms to achieve sustainable growth, including five key steps to transform with confidence: build before you scale, prioritize unified strategies, invest proactively, let AI drive compliance, and continuously evolve.

The full report can be downloaded here.

About GlobalLogic

GlobalLogic, a Hitachi Group Company, is a leading digital engineering partner that helps the world's most forward-thinking companies design and build innovative, AI-powered products, platforms, and digital experiences. Since 2000, we've been at the forefront of the digital revolution, now accelerating clients' transitions into tomorrow's AI-driven businesses by integrating experience design, complex engineering, AI, and data expertise. Headquartered in Silicon Valley, GlobalLogic is a Hitachi Group Company operating under Hitachi, Ltd. (TSE: 6501), which contributes to a sustainable society with a higher quality of life by driving innovation through AI and technology as the Social Innovation Business.

About FT Longitude

At FT Longitude, we harness the power of intelligence with influence to leave a lasting impression on the world of business. With a focus on pioneering thought leadership strategies, we create high-impact campaigns that transform perceptions. We craft powerful insights that engage key decision-makers, and using creative storytelling techniques, we imprint brands with unforgettable messages that resonate. Visit longitude.ft.com and find us on social media.

View source version on businesswire.com: https://www.businesswire.com/news/home/20251007502837/en/

Media Contact
Allison Lucas
Corporate Communications GlobalLogic
allison.lucas@globallogic.com

Source: GlobalLogic Inc.