One in ten firms in Japan have yet to deploy AI as talent availability hinders scaling, finds Finastra Research

Tokyo, Japan – February 10, 2026 – Talent availability is one of the most significant barriers to scaling artificial intelligence (AI) across financial institutions in Japan, according to new research from Finastra, a global leader in financial services software. While adoption is progressing, the pace of execution is constrained by skills shortages. Despite this, 84% of financial institutions in Japan plan to increase AI investments over the next 12 months, signaling strong intent to scale even as capability gaps persist.

The Finastra Financial Services State of the Nation 2026 report finds that 85% of financial institutions in Japan are either researching, piloting or actively deploying AI. Institutions are primarily focused on improving employee productivity and increasing processing speed across payments and lending, highlighting a pragmatic, operational approach to AI adoption.

The research also shows that modernizing technology and security are also high on the agenda. Financial institutions in Japan are investing in AI-enabled tools such as robotic process automation (RPA) and agentic AI, alongside advanced fraud and transaction monitoring and API security. These priorities reflect rising digital risk, tighter regulatory scrutiny, and growing reliance on technology across core operations.

The 2026 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.

Other key findings include:

• Customer experience becomes the front line – 42% of financial institutions say ‘improved service and more personalized experiences are now their customers’ top demand, reinforcing the role of trust, reliability, and security as competitive differentiators.
• Industry confidence remains positive – Despite disruption, optimism persists 64% of respondents report high levels of optimism about the opportunities ahead at a personal level, while 63% are optimistic about the outlook for their institutions as technology and operating models continue to evolve.
• Modernization has moved to the top of the agenda – Three in four respondents plan to invest in modernization over the next 12 months, driven by the need to scale AI, strengthen resilience, and deliver superior customer experience. Fintech partnerships are the default approach for 65% of institutions.
• Cloud adoption underpins modern transformation – Over a third (37%) of respondents have at least most of their software stack in the cloud, reflecting its role in lowering costs, increasing scalability, and enabling personalization, compliance, and faster innovation.

“Japan’s financial sector is clearly committed to AI, but the challenge has shifted from ambition to execution,” said Chris Walters, CEO at Finastra. “Talent constraints are now one of the defining factors in how quickly institutions can scale. Those that invest in modern platforms, automation, and secure foundations will be best positioned to move from pilots to dependable, enterprise-wide deployment.”

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:

Jackie Kumar
APAC and MEA PR Specialist
T +63 998 5461716
E jacqueline.kumar@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.