Manama: A report issued by Dubai International Financial Centre (DIFC) as part of its 2026 Future of Finance series said the future of the global banking sector will depend on institutions' ability to build resilience and respond effectively to rapid market changes rather than on their size alone.
According to Bahrain News Agency, the report, titled "The Changing Face of Banking: Building Resilience Through Change," highlighted the need for global banks to adapt their operating models to address challenges arising from the growing influence of artificial intelligence (AI), increasing competition from digital-native institutions, and changing global demand patterns.
The report said digital-native banks are setting new standards in the speed of transactions and service personalisation, exposing limitations in traditional operating models and placing established institutions under increasing pressure to accelerate innovation.
It warned that traditional banks could see profits decline by USD 170 billion by 2030 if they fail to undertake fundamental changes to their operating models, which could affect the ability of many institutions to cover the cost of capital.
Arif Amiri, Chief Executive Officer of DIFC Authority, highlighted the importance of adopting innovation to enhance adaptability in a financial environment shaped by AI and digital assets. He emphasised DIFC's commitment to supporting this transformation and strengthening Dubai's role as a strategic base for financial institutions seeking to adapt to structural changes in the sector.
The report noted that DIFC currently hosts 290 banks and financial institutions, including 17 of the world's 19 globally systemic banks.
It concluded that banks that integrate AI as a core part of their infrastructure will be better positioned to protect profitability, reach new customer segments, and expand into promising regional and global markets.