Majority of banking CEOs in the US believe that they are not effectively leveraging digital channels to connect with customers, hence planning to increase investments in their companies’ digital transformation, according to a report published by KPMG.

KPMG LLP national leader for banking and financial services Brian Stephens said: “In order to keep pace with the expectations of today’s connected consumers, banking leaders realize the need to digitize the entire enterprise – from the back office to the front door. They are up against some stiff competition from the fintech startups and retailers, and need to be able to offer their customers a much more personalized and mobile experience.”

KPMG’s 2017 U.S. CEO Outlook study revealed that 53% of the CEOs who participated in the survey see technological disruption as an opportunity as opposed to a threat, however 55% were of the opinion that disruption in banking will weaken or eliminate some traditional leaders.

Nearly two-third (64%) of the CEOs said they plan to increase their investment in finding innovative new ways of reaching their customers over the next three years.  Robotic process automation (RPA), cognitive technologies (artificial intelligence (AI), machine learning), data & analytics and blockchain will garner majority of such investments.

However, the study also found that 44% of the respondents were not yet ready to embrace advanced AI technology.

Nearly 39% of the banking CEOs said they can’t base important decisions on their data until they significantly invest in improving their quality. They referred the complexity of implementation (31%) and lack of available budget (25%) as the biggest barriers to implementing new technologies.