The competition for talent now includes tech, fin-tech and a range of other disruptors, says Jackson King, director of tenant representation at JLL Australia. A younger talent pool has also heightened the requirement for organizations to have ambitious ESG goals and led many banks and financial institutions to review their workplace objectives. 

“While this often results in a reduced overall footprint, we’ve seen a real trend towards improved office environments – both through relocation to better quality and better located assets, but also through major fit-out works and investments in workplace technology,” he says.

JLL's research notes that the banking industry will deliver the largest investments in artificial intelligence as generative AI and machine learning is increasingly used to reduce costs.

Banks worldwide are expected to spend an additional $31 billion on AI embedded in existing systems by 2025 and will deliver the largest AI investments in 2023 across industries.

Meanwhile, the largest banks have increased hiring for software developers and data scientists by 90% since 2018. One example: Morgan Stanley using OpenAI’s GPT4 platform as a financial advisor solution to better serve clients and tap into the firm’s large repository of research and data.

“As banks accelerate towards AI and machine learning, corporate real estate portfolios have a critical role in enabling them to attract and retain top tech talent, provide the necessary infrastructure to support these technologies, and create a flexible and agile workplace that can adapt to changing business needs,” Bouzarouata says. “They have to remain competitive in this digital age.”