Riyadh, Saudi Arabia – February 10, 2026 – Financial institutions in Saudi Arabia have reached a decisive AI tipping point, according to new research from Finastra, a global leader in financial services software. Just 1% of financial institutions in Saudi Arabia, and 2% globally, now report no use or no plans to use artificial intelligence, signaling a clear shift from experimentation to execution as AI becomes embedded across core banking, payments, lending, and compliance functions.
The Finastra Financial Services State of the Nation 2026 report shows institutions in Saudi Arabia increasing focused on scaling AI responsibly, strengthening resilience, and delivering more consistent customer experiences as digital transformation accelerates and expectation rise. The 2026 research surveyed senior professionals at financial institutions and banks across 11 global markets, including Saudi Arabia. (France, Germany, Hong Kong, Japan, Mexico, Saudi Arabia, Singapore, the UAE, UK, the U.S., and Vietnam.)
Key findings include:
- AI adoption is near universal – Nearly all financial institutions in Saudi Arabia are now using AI. 46% cite improving accuracy and reducing errors as their primary objective, while Saudi Arabia ranks highest globally for framing AI as a lever for competitive advantage (41%), signaling ambition to leapfrog peers through digital transformation.
- Modernization has moved to the top of the agenda – Nine in ten respondents (87%), both globally and in Saudi Arabia, plan to invest in modernization over the next 12 months. These investments are driven by the need to scale AI, strengthen operational resilience, and deliver more reliable customer experiences. Partnerships with fintech providers are the default approach for close to half (45%) of institutions in Saudi Arabia.
- Customer experience becomes the front line – Financial institutions in Saudi Arabia rank highly compared to global peers in providing personalized recommendations, while investment in customer experience and personalization is expected to increase significantly in the year ahead. 93% of Saudi institutions are expecting to increase investment in this area, reflecting how central service quality and trust have become to competitiveness.
- Industry confidence remains strong – Despite ongoing disruption, optimism in Saudi Arabia is high. 95% of respondents express high levels of optimism about the opportunities ahead at a personal level, compared to 87% globally. Similarly, 92% are optimistic about the outlook for their institutions as technology and operating models continue to evolve, versus 86% globally.
- Security investments rise sharply – Security continues to climb the agenda as reliance on digital platforms deepens. Financial institutions globally expect security investment to increase by an average of 40% in 2026, driven by escalating cyber threats, tighter regulatory scrutiny, and growing dependence on technology across core operations.
- Cloud adoption underpins modern transformation – 58% of respondents in Saudi Arabia state that they host most of their software stack on cloud solutions, reflecting its role in lowering costs, increasing scalability, and enabling personalization, compliance, and faster innovation.
“Technology decisions now sit at the center of trust, resilience, and customer experience,” said Chris Walters, CEO of Finastra. “Institutions in Saudi Arabia are moving decisively beyond experimentation, focusing on responsible AI, modernization and security to deliver reliable, personalized financial services at scale.” He added: “We look forward to working closely with our customers as strategic partners as they navigate this new landscape with modern, secure and innovative software solutions.”
Access the full Finastra Financial Services State of the Nation 2026 report here.
Notes to editors
Survey methodology
The research was conducted by Savanta via an online panel (November 2025).
A total of 1,509 managers and executives from banks and financial institutions across 11 regions participated in the survey (including France, Germany, Hong Kong, Japan, Mexico, Saudi Arabia, Singapore, the UAE, UK, the U.S., and Vietnam). Collectively, the organizations represented manage over $100 trillion in assets, equivalent to approximately a quarter of global financial assets based on public estimates. These organizations employ around 5 million staff and serve approximately 400 million client, customer, or member relationships.
Figures are based on respondent-reported data; percentages may not sum to 100 percent due to rounding and multiple-choice questions.
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