Banks, wealth managers, and asset managers are investing increasing amounts of money in technology, but rising expenditures do not automatically lead to better scalability. This is the conclusion of the study “Master complexity to unlock scale,” published by Monitor Deloitte in collaboration with the fintech provider Objectway.

According to this report, global spending on technology and operational processes in the financial sector is expected to rise from around €173 billion in 2025 to approximately €243 billion in 2029. Despite this, only a quarter of financial institutions have so far managed to decouple growth from rising costs.

Outdated business models are slowing growth

According to the study, the problem lies less in a lack of investment than in outdated technology and operating models. These are increasingly struggling to keep pace with regulatory requirements, rising customer expectations, and growing international complexity.

According to the authors, 72% of the surveyed financial institutions currently do not have an operating model that enables sustainable growth without simultaneously increasing costs.

As-a-Service models are gaining in importance

Against this backdrop, the study shows that more and more financial institutions are relying on so-called “as-a-service” models. In this model, standardized technology and operational processes are outsourced to specialized providers, while the institutions concentrate on their core business.

The study identifies a shift in the sourcing strategy of many institutions. Instead of choosing between in-house development and outsourcing, financial companies are increasingly using hybrid models that combine internal expertise with external services.

According to the surveyed institutions, the importance of these models will increase significantly in the coming years. Among small and medium-sized financial institutions, the proportion using “as-a-service” as their primary operating model is expected to rise from the current 8% to 31%. For larger institutions, the authors anticipate an increase from 23% to 47%.

The possible operating models range from hybrid SaaS solutions to models where technology and operational processes are provided entirely as a service.

AI increases the pressure to act

The study identifies the increasing use of artificial intelligence as an additional driver. Its potential can only be fully realized if data, processes, and governance structures are closely integrated.

According to the authors, 85% of companies are already working on specific AI governance frameworks. At the same time, respondents expect the use of so-called agentic AI to more than double in the next twelve months.

The study “Master complexity to unlock scale: the as-a-service imperative for Wealth, Banking and Asset Management” was prepared by Monitor Deloitte and Objectway. According to the publishers, it is based on market and benchmarking analyses, findings from a joint study by FT Longitude and Objectway, and case studies of transformation projects in the financial sector.