BPI Calls for the Creation of Board-Level Technology Committees

The Bank Policy Institute (BPI) has urged banks to establish dedicated technology committees at the board level, warning that existing governance structures are being stretched by rapid digital transformation and rising cybersecurity risks.

The association said technology, AI, data governance, and operational resilience have become central boardroom concerns as banks expand their digital capabilities. The growing scale and complexity of technology, it argued, require more sustained and consistent oversight than can be provided through traditional audit or risk committees alone.

Banks are increasingly migrating critical workloads to the cloud, deploying advanced analytics and AI, and modernising core platforms. At the same time, firms are operating in an environment marked by persistent cyber threats, heightened regulatory expectations, and closer scrutiny from customers and investors of digital resilience and performance.

According to BPI, boards are now expected not only to understand the technology landscape but also to challenge management on strategic direction, risk appetite, and the returns generated from significant technology and AI investments.

The recommendations follow a BPI survey of financial institutions, which found that 64% of respondents have already formed, or are considering forming, a board-level technology committee. This represents a shift from previous practice, where responsibility for technology oversight was more commonly embedded within audit or risk committees.

Survey respondents cited a number of drivers for establishing technology committees. The most common reason, identified by 81% of participants, was the need for focused oversight of technology strategy, investments, and major initiatives. More than half (56%) pointed to the importance of supporting digital transformation, innovation, and the adoption of emerging technologies such as AI.

Enhanced oversight of cybersecurity, technology risk, and operational resilience was cited by 38% of respondents, while 31% said technology committees help improve alignment between business and IT strategy and increase board-level engagement with technology leaders.