Banking modernisation outlook — GCC 2026
Investment patterns, regulatory shifts, vendor analysis across 14 banks.
- 01 14 GCC banks surveyed. Combined modernisation spend grew 28% year-over-year.
- 02 Core banking replatform is the largest line item; AI underwriting is the fastest-growing.
- 03 Regulator engagement on AI risk has hardened in three of the six GCC jurisdictions.
- 04 74% of programmes prefer co-delivery with the customer’s in-house team rather than full outsource.
Investment patterns
Modernisation spend across the 14 surveyed banks grew 28% year-over-year. The growth is concentrated in three areas: core banking replatform (38% of total), AI underwriting and decisioning (22%, fastest-growing), and FinCrime / KYC modernisation (16%).
Regulatory shifts
Three GCC jurisdictions hardened AI risk guidance in 2025. Expect formal model-risk regulations specifically tuned for GenAI in 2026. Banks that pre-built their model risk function will absorb the change without disruption.
Vendor landscape
The vendor landscape continues to fragment. Banks are increasingly choosing best-of-breed components over monolithic stacks. Expect this to peak in 2026 before consolidation.
Co-delivery preference
74% of surveyed banks prefer co-delivery with their internal teams rather than full outsource. The driver is talent retention; the side effect is a strengthened internal capability that lasts beyond the engagement.
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