The banking industry is poised for significant transformation in 2025, driven by technological advancements enhanced by skilled teams, shifting customer/member preferences, and changing global economic factors. 2025 is the year of opportunities for banks and credit unions as they gradually come out of the financial strains of 2023 and 2024:

AI will reshape operations and improve customer/member experiences in banking. The AI market in financial services is projected to grow from $19.90 billion to $315.50 billion by 2033, unlocking significant potential for better customer/member interactions. Generative AI (GenAI) and, more importantly, Agentic AI will facilitate personalized financial planning, drive innovative product development, and strengthen real-time fraud detection.

Robotic Process Automation (RPA) and hyper-automation in financial services are expected to grow and skyrocket from $745.4 million to $7.1 billion by 2031, marking a significant leap in the industry’s evolution.

As digital transactions increase dramatically, robust cybersecurity measures become essential and critical. By 2025, FIs will focus on implementing zero-trust architectures, continuous monitoring, and effective contingency plans to ensure operational resilience, providing a reassuring layer of safety for all digital transactions.

Sustainability will play a crucial role in financial services by 2025. FIs that commit to environmental, social, and governance (ESG)-aligned portfolios and invest in renewable energy will resonate with customer/member values and demonstrate a commitment to responsible finance.

While still emerging, quantum computing is expected to see initial operational deployments by 2025. Financial services spending on quantum computing is projected to soar to $19 billion by 2032—showcasing its potential impact.

As we approach 2025, the financial industry is poised for substantial transformation, primarily driven by technological advancements, an increased emphasis on customer and member-centric approaches through service desks, and a steadfast commitment to sustainability. Partnerships will hold the key to success. Financial institutions that acknowledge and actively engage with partners who are market leaders of these emerging trends will position themselves as leaders within the industry, guiding the sector toward a more intelligent and inclusive future.

Connect with us to discuss these trends in detail.

– by Ankit Maharaj Singh
Senior Vice President, Strategic Growth