German financial institutions are rapidly embracing AI and modernization, Finastra research reveals
- AI, core banking modernization, and rising customer expectations take center stage
- Readiness for technological change is high, despite constraints
- Personalization is key, with a focus on tangible use-cases
Frankfurt, Germany – February 10, 2026 – Near-universal adoption of AI is present among German financial institutions, according to new global research from Finastra, a global leader in financial services software. Only three percent of financial institutions in Germany now report no use of artificial intelligence, signaling a clear shift from experimentation to execution across the industry.
The Finastra Financial Services State of the Nation 2026 report finds that almost half (45%) of German institutions are adopting AI assistants and chatbots for training and troubleshooting for lending, signaling an appetite to bridge knowledge gaps and increase efficiency with new technology.
The research also shows core banking modernization is gaining momentum, as German institutions confront the limits of legacy systems, with 34% reporting its importance. This leads the way among global respondents, reflecting a growing recognition that modern cores are essential for launching new products, reducing costs, and enabling real‑time, customer‑centric experiences.
The research surveyed senior professionals at financial institutions and banks across France, Germany, Hong Kong, Japan, Mexico, Saudi Arabia, Singapore, the UAE, UK, the U.S. and Vietnam.
Key findings in Germany include:
- Confidence in preparedness for technological change is strong, while clearly acknowledging internal challenges - 86% state they are prepared for technological change and have identified constraints that need to be addressed as they transform their tech stacks, including data security (32%), organizational readiness (37%), and pace of change (30%).
- Partnerships with fintech providers ease internal constraints – Acknowledging that in-house challenges can stall technological change and innovation, 36% cite internal capacity constraints as a reason for partnering with fintech providers to acquire new technology capabilities. Another 34% say managed service for speed and flexibility is another benefit, highlighting the benefits of cloud adoption.
- Personalization is rooted in concrete customer experiences – Future personalization plans in Germany span a range of use cases, all falling between 20%-30%, including customizable digital wallets, tailored loan offers, real-time payments and recommendation-based personalization, with no single use case dominating adoption intentions. This reflects the varied needs of customers across the country. Tailored reward programs stand out at 36%, hinting at a future desire to provide incentives and drive increased loyalty.
- Security and reliability are top-of-mind – While 77% report that they are ahead of their competitors in this area, future investment is still important. Only 6% say spend is decreasing or remaining flat in this area, indicating growing digital risk, tighter regulatory scrutiny, and deeper reliance on technology across core operations.
“Technology decisions now sit at the center of trust, resilience, and customer experience. Institutions are expected to move quickly, but also responsibly, as regulatory scrutiny increases, and customers demand financial services that work reliably, securely, and personally every time,” said Chris Walters, CEO at Finastra. “This year’s findings show a sector moving decisively beyond experimentation and into execution.”
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
- 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.
- The research was conducted by Savanta via an online panel (November 2025).
For further information please contact:
James McKenna
Senior PR Manager, Americas & Europe
T +1 845-546-2745
E james.mckenna@finastra.com
finastra.com
About Finastra
Finastra is a global leader in financial services software, trusted by 7,000+ customers - including 40 of the world’s top 50 banks - in over 110 countries. With expertise in Lending, Payments and Universal Banking, we deliver reliable, scalable, mission-critical solutions such as Loan IQ, LaserPro, Trade Innovation, Essence, Global PAYplus, Payments To Go, and Financial Messaging. Backed by Vista Equity Partners, we co-innovate with customers to build modern technology that helps financial institutions grow with confidence. Visit www.finastra.com or follow Finastra on LinkedIn.