Press Release

Financial institutions in Germany see Gen AI and BaaS as next big disruptors to financial services, says Finastra survey

  • Nearly 9 in 10 German financial institutions are interested in or already implementing Gen AI, higher than the global average
  • Notable uptick shown in BaaS and embedded finance adoption during the last 12 months

Frankfurt, Germany – November 27, 2023 – Finastra’s latest research reveals that, despite economic constraints, financial institutions in Germany continue to invest in artificial intelligence (AI), Banking as a Service and embedded finance, and Open Finance.

The ‘Financial Services: State of the Nation Survey 2023’ finds that more than a third (34%) of German institutions have improved or deployed AI in the last 12 months, higher than France (28%) but lower than the UK (37%), and up from 27% last year. Generative AI (Gen AI) is front of mind, with nearly 9 in 10 (89%) either interested or already implementing the technology, higher than France (74%) and the UK (75%). The top use cases cited are to collect, process and analyze data for Know your Customer (KYC) or Anti-Money Laundering (AML) purposes (32%), followed by automating manual or repetitive tasks, such as document checking or documenting code functionality (29%).

German institutions are extremely optimistic about the technology’s potential. When asked what the next big disruptor to financial services will be, Gen AI was the most popular answer (78%), compared to 68% in France. This is closely followed by Banking as a Service (BaaS) or embedded finance (74%), which reflects the notable uptick in adoption. In the last 12 months, 35% of respondents said they have improved or deployed BaaS, up from 25% last year, and 40% for embedded finance, up from 28% last year. The most advanced use cases cited are Buy Now Pay Later (BNPL) and cross border payments.

Another interesting finding is German institutions’ attitudes towards distributed ledger technology (DLT). Nearly a quarter (24%) of respondents say they plan to improve or deploy Decentralized Finance (DeFi) in the next 12 months, up from 18% last year, alongside the exact same figures for blockchain. However, only 17% of institutions plan to improve or deploy cryptocurrency during this timeframe, down almost half from 30% in 2022. This could reflect greater caution and risk aversion from financial institutions due to the high volatility of cryptocurrency markets and a difficult economic climate.

The research, conducted from August to September 2023, canvassed the opinions of 956 professionals at financial institutions and banks across France, Germany, Hong Kong, Singapore, Saudi Arabia, the UAE, UK, US and Vietnam.

Other insights include:

  • German institutions feel the economic pinch: 85% of respondents say their technology investments have been constrained by economic conditions, up from 78% last year and higher than the global average of 78%. However, some optimism remains, with 65% of leaders hopeful that their investments will resume before the end of H1 2024.This is lower than France (72%) yet substantially higher than the UK (55%).
  • Investment in growth and liquidity remains strong: Three quarters of institutions say they have increased or plan to increase investment in growth after the recent/current economic downturn, while just over this figure (78%) say the same for liquidity management. The similar statistics between these investments and technology investment suggests firms will turn to technology to support their growth and liquidity management.
  • Appetite for Open Finance grows: More than 9 in 10 (93%) German firms say Open Finance is a must have or important, up from 89% in 2022 and substantially higher than the UK (83%) and France (81%). This coincides with growing investment in Open APIs, with a quarter of institutions planning to improve or deploy the technology in the next 12 months, up from 18% last year.
  • Leaders are excited about the speed of change: When asked whether they were excited about the pace of technological and cultural change in financial services personally, for their financial institution and for the wider industry, 81%, 72% and 78% respectively agree. This shows that despite the economic downturn, leaders remain positive about the future.

“Despite the challenging economic climate, it’s clear from our research that investment in AI, BaaS, and embedded finance remain key priorities for financial services organizations over the next 12 months,” said Simon Paris, Chief Executive Officer at Finastra. “Germany demonstrates a strong appetite for AI, showing great promise for the future of financial services in the region. We share the industry’s ongoing commitment to Open Finance, the positive sentiment about the pace of change in financial services and excitement in using advanced technologies like AI to help deliver on the opportunities ahead.”

Access the full report and findings here.

Survey Methodology

  • A total of 956 professionals (at managerial level) in financial institutions and banks across the US, UK, France, Germany, Hong Kong, Singapore, Saudi Arabia, Vietnam and the UAE were surveyed. These financial institutions represent a gross total of around USD$33 billion in turnover over the last 12 months, employ approximately 2.4 million staff and have approximately 240 million client / customer / member relationships.
  • As a result of rounding up percentage results, the answers to some questions might not always add up exactly to 100%. Respondents were also able to select more than one answer for some questions.
  • Comparative analysis was made from results of a similar survey run by Finastra in August 2022 which was also conducted online amongst financial institutions and banks across the same markets, except for Saudi Arabia and Vietnam.
  • The research was conducted by Savanta via an online panel (August to September 2023).


For further information, please contact:

Sofia Romano
Head of PR, EMEA at Finastra
T +44 (0)7552865009

About Finastra

Finastra is a global provider of financial software applications and marketplaces, and launched the leading open platform for innovation,, in 2017. It serves institutions of all sizes, providing award-winning software solutions and services across Lending, Payments, Treasury & Capital Markets and Universal Banking (Retail, Digital and Commercial Banking) for banks to support direct banking relationships and grow through indirect channels, such as embedded finance and Banking as a Service. Its pioneering approach and commitment to open finance and collaboration is why it is trusted by over 8,000 institutions, including 45 of the world’s top 50 banks. For more information, visit