Banking resilience will define long-term success for financial institutions navigating disruption, according to the second report in the 2026 Future of Finance series launched by Dubai International Financial Centre (DIFC) on Wednesday.

Titled The Changing Face of Banking: Building Resilience Through Change, the report examined how global banks must adapt their operating models to absorb disruption, evolve, and remain competitive amid the rise of artificial intelligence (AI), digital-native challengers, and shifting global demand.

According to the report, challenger banks built on AI-driven, cloud-first and asset-light models are setting new benchmarks for speed, personalisation and cost efficiency. As a result, they are exposing the limitations of traditional banking models and increasing pressure on established institutions to innovate faster.

Furthermore, the report warned that without decisive transformation, industry profit pools could decline by US$170 billion by 2030, potentially pushing many banks below their cost of capital.

The report identified AI as the clearest path forward for the sector. It noted that AI is rapidly becoming core infrastructure for banks, delivering productivity gains and laying the foundation for next-generation operating models. This shift is reinforcing the importance of banking resilience as institutions seek to remain competitive in a changing market.

Commenting on the findings, Arif Amiri, Chief Executive Officer at DIFC Authority, said: “As the global banking industry undergoes its most significant transformation in nearly two decades, institutions must embrace innovation, resilience and adaptability to thrive in a rapidly evolving financial landscape shaped by AI, digital assets and shifting global markets.

“In Dubai and specifically at DIFC, we are committed to enabling this transformation through a future-focused ecosystem that connects global institutions to high-growth opportunities across the Middle East, Africa and South Asia, while supporting banks in building the agility and resilience needed for the future.”

The report is the second installment in a four-part Future of Finance series scheduled for publication throughout 2026. It is based on insights gathered from a high-level roundtable hosted by DIFC earlier this year, which brought together senior financial services leaders.

In addition, the report incorporated network-based research and interviews with industry experts, including Ambareen Musa, CEO of GCC at Revolut; Rohit Garg, Chief Digital Officer and Group Head, Retail Products at Emirates NBD; and Fernando Morillo, Group Head of Retail Banking at Mashreq.

The findings suggested that banks acting early and decisively can protect profitability while unlocking opportunities across new client groups, regions and frontier asset classes. As a result, they could capture a larger share of global finance.

The report also highlighted the role of supportive regulatory environments in accelerating innovation. Banks are expected to use such jurisdictions to pilot new services and test AI models, governance frameworks and operational processes before scaling them more broadly.

As the world’s first AI-native financial centre, DIFC said it is integrating intelligence into regulatory processes and market infrastructure, enabling firms to build, test and scale AI-driven financial services.

DIFC’s ecosystem currently includes 290 banks and capital markets firms, including 17 of the world’s 19 global systemically important banks. This strengthens the centre’s position as a strategic hub for institutions managing structural change across the financial sector.

Additionally, the report found that entrepreneurs, family offices and women represent influential yet underserved banking client segments. It noted that AI-driven insights and personalised advisory services can help banks better anticipate customer needs, deliver tailored offerings and create new revenue opportunities.

DIFC said its pro-innovation regulatory framework, robust legal environment and advanced market infrastructure continue to position Dubai as a leading global capital hub. By supporting AI-enabled client engagement and next-generation banking models, the centre aims to reinforce banking resilience and help shape the future of finance.

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