In 2025, the financial services industry will undergo a seismic shift. We’ll see:
- More mature generative AI
- Increased regulatory pressure
- A focus on data strategies that support AI
- A move from on-prem to cloud computing environments
- A growing need for process automation
- More open banking APIs (and with that, more cybersecurity concerns)
- Global economic uncertainty
Imagine near-perfect AI-driven document data extraction. Agentic AI that brings together automation technologies and human intelligence. Flexible data fabric networks that make faster data-driven insights possible without the burden of costly consolidation.
For financial leaders, this will be a year of bold moves and transformative strategies. Read on to learn more about the banking technology trends that will shape the industry in 2025.
1. A move beyond generative AI pilot programs
Generative AI will move from experimental pilots to widespread adoption in banking, fundamentally transforming banking operations and risk management. Financial institutions will focus on integrating AI into risk management processes for things like fraud detection and regulatory compliance and monitoring. By improving data accuracy, AI will make fraud management more effective and reduce false positives in compliance monitoring.
But any investments in banking automation will need to be balanced with governance. AI autonomy must be guarded with human oversight to meet explainability and governance standards. If they proceed responsibly, though, early adopters will gain a competitive edge as they scale their AI implementations to unlock new levels of productivity.
2. Increased regulatory pressure
Regulatory requirements will focus on ensuring ethical and responsible use of AI—particularly as it relates to sensitive customer financial data. Banking industry compliance teams need strong AI governance to mitigate risks like cyber threats and maintain their competitive advantage.
Banking regulations like the Digital Operations Resilience Act (DORA) in the EU demand robust risk management across the supply chain. Banks with existing expertise in model risk management should establish AI-specific governance processes that meet compliance and reporting requirements.
3. Better data frameworks that tap into AI's full potential
Data lets banks unlock the full potential of AI-driven insights. Addressing challenges like siloed data sources is critical as financial institutions prioritize data quality and accessibility to power banking automation.
Solutions like data fabric offer a path forward, integrating data in real time without the need for costly migrations. Data fabric also facilitates a wide range of other technologies, like actionable insights from AI tools and robotic process automation. And regulatory frameworks like ISO 20022, which aims to improve cross-border payments, will accelerate data standardization. This creates opportunities for new banking services and better targeted marketing of banking products.
4. Cloud adoption that spurs infrastructure modernization
Cloud migration is letting banks modernize their operations and fully access the capabilities of generative AI. By transitioning from on-premises legacy systems to scalable cloud computing environments, banks overcome barriers like limited scalability.
Like data fabric, this shift also supports secure AI, with a focus on safeguarding sensitive financial data and personally identifiable information (PII). Moving to cloud-based solutions is not just an IT upgrade but a critical enabler for AI-driven advancements in technology.
5. Process automation takes center stage
Process automation takes center stage as traditional banks strive for more operational efficiency. And when it’s integrated with AI, automation becomes even more powerful, enabling an ecosystem where data insights drive smarter, faster business processes. Banks will focus on automating processes where compliance is especially critical, like customer onboarding and risk management.
6. Growth in open banking brings cybersecurity concerns
Open banking application programming interfaces (APIs) are getting more popular, fostering innovation as fintechs use customer-consented bank data to offer new financial products. This drives progress and has a positive impact on competition, but it also creates complex ecosystems that increase cybersecurity risks.
With more players joining the field of complex financial process chains, banks must address security concerns. To succeed, collaboration between banks and fintechs will be necessary. They will have to develop robust security measures and advanced security tools to protect against fraud and evolving cyber threats.
7. Economic uncertainty tied to global events
Financial services and banking trends will be shaped by macroeconomic uncertainty. Just in the last few years, the banking industry has been disrupted by the pandemic, surging inflation, wars, and climate disasters—all things that create financial instability.
To counter this uncertainty, banks will prioritize tech that enhances operational efficiency, resiliency, and risk management. AI and automation will help banks make better data-driven decisions to navigate economic fluctuations more nimbly. Cybersecurity will also remain a top priority in the banking sector to further ensure stability.
Technologies banks need to keep up with trends in 2025
To stay competitive and meet evolving customer expectations, traditional banks must adopt cutting-edge technologies that drive digital transformation and deliver modern financial solutions. Key tools for 2025 include:
AI-powered virtual assistants
- Enhance customer service with 24/7 personalized support.
- Manage vast amounts of customer interactions efficiently.
Data fabric
- Integrate and connect disparate data systems for a unified view.
- Provide actionable insights to reduce operational costs and improve decision-making.
Generative AI tools
- Create tailored solutions to meet specific customer expectations.
- Streamline content creation, fraud detection, and customer engagement strategies.
Cloud computing
- Enable scalable infrastructure to handle growing digital banking demands.
- Improve operational flexibility and reduce IT maintenance costs.
Process automation
- Reduce manual effort and operational inefficiencies.
- Achieve significant cost savings with scalability and speed.
With technologies like these, traditional banks will transform their operations, deliver superior customer service, and lead the way in the future of banking.
Bottom line: Process resilience is at the center of 2025’s banking trends
As operational efficiency becomes more important to the financial industry, banks will need to use AI to keep their processes agile. Initially, the deployment of AI applications will be concentrated on internal processes, but as the technology matures, it will show up in customer experiences as well. Banks will need to invest in modern tools that let them bounce back from unpredictable market conditions and adapt to change.
Resilience will be key to the future of financial services. Because this push for a culture of innovation will not come without its challenges. As more jurisdictions follow the EU’s lead in introducing regulations, financial institutions will find themselves balancing innovation with the critical need to ensure security, compliance, and customer satisfaction.
Above all in 2025, banks will need to navigate the intersection of financial technology advancement and regulatory responsibility. And they’ll need process resilience to do it.
