What trend(s) do you see for 2025? - Part 1
Jon Tvrdik, CEO, WaveCX
In 2025, we anticipate a significant shift towards post-navigation user interfaces (UIs) that embrace command-line interfaces and generative search. This trend is driven by the need to eliminate the inefficiencies of traditional navigation systems, where users often have to click through multiple menus to find what they need. Instead, AI-powered engagement tools that combine intelligent search with contextual navigation will transform how financial institutions serve their customers. Users will be able to type a simple query and receive not just an answer, but a guided action to solve their problem. This approach will make interactions seamless, personalized and efficient, ultimately enhancing the user experience.
Another key trend is the integration of generative AI into business processes to enhance efficiency and productivity. AI is being rapidly adopted to streamline workflows, eliminate unnecessary steps and provide users with fast, accurate outcomes. In banking, this means simplifying procedures and cutting through the overwhelming number of products and services to help users find the best options based on real-time insights.
Alex McLeod, CEO, Parlay Finance
Looking ahead to 2025, small business lending will be driven by AI and ML-powered automation and product innovation. Banks will accelerate their transition from basic fintech integration to comprehensive digital transformation of their lending operations. With interest rates expected to stabilize, lenders will need to compete by offering hyper-personalized products and faster approvals through automated underwriting. The regulatory environment will likely encourage tech-enabled lending solutions, pushing traditional banks to modernize their SMB offerings or risk losing market share to more agile competitors.
Steve Reider, President, Bancography
Bancography anticipates renewed interest in branch deployment in major metro areas, as competitors strive to keep pace with the expansion investments of some of the largest banks, even as banks pare investments in smaller, rural markets. Bancography also foresees emerging anxiety and reconsideration of how far is too far for automation, as small businesses shunted to call centers and consumers directed to chatbots turn from regional/national banks to community banks and credit unions that maintain in-person service from dedicated personal bankers / relationship managers; smaller institutions will especially pursue the most profitable consumer and small-business segments with a more personalized service proposition.
Sarah Martin, CEO, Pulsate
In 2025, I expect there to be a major transformation in how banks view their digital banking platforms. Traditionally seen as transaction-focused cost centers, these platforms are increasingly being recognized as potential profit centers. With up to 30% of customers checking their banking apps daily, there are more opportunities than ever to engage account holders and meet their needs. However, most digital banking technology today is better at facilitating transactions than recognizing and addressing customers' needs in real-time. This is akin to opening a branch in a high-traffic area but failing to hire staff trained to cross-sell. Digital-only and neobanks have already tackled this challenge successfully, and it's time for community FIs to leverage the right tech solutions to catch up.
Amanda Crocker, COO & Interim CEO for SWIVEL®, an SWBC Company
Instant payments will continue to gain ground in 2025 beyond typical consumer account-to-account transfers. More banks are realizing the significant opportunities this technology offers to streamline and advance their internal business processes and B2B transactions. Solutions that can help them fully leverage these benefits, especially by providing easy, streamlined support in the processes with their core systems, will be critical.
I also expect to see a move for more modern UI/UX workflows in the new year. Modernizing UI/UX is crucial for user adoption, efficiency and innovation. Robust strategies like behavior analytics, persona-driven design and adaptive workflows are key, not just as tech fixes, but as cultural shifts to meet evolving customer needs. Designing with these nuances in mind will differentiate forward-looking organizations.
Brad Tompkins, CIO, Vergent
In 2025, we believe banks will continue to prioritize hyper-personalized customer experiences through advanced data analytics and AI. Automation will streamline workflows, improving efficiency in areas like deposit acquisition and customer onboarding. Cloud and edge computing adoption will grow, enabling scalable, secure, and faster operations. Additionally, DevOps practices will support rapid innovation, helping banks stay agile in a competitive landscape.
Preethi Janardhanan, VP, Client Solutions, Rapid Finance
In 2025, AI will continue to play a transformative role in streamlining operations, improving customer experiences and enabling fraud detection and risk management. Banks will leverage predictive analytics and data-driven decision-making to personalize financial services through identifying new opportunities for both their retail and small business customers.
As small businesses largely remain underserved, banks will prioritize this segment, recognizing its importance to local communities and the broader economy. Traditional financial institutions will invest in advanced technologies to drive local economic growth and enhance their competitive edge.
Additionally, we expect to see a rise in strategic partnerships between community FIs and fintech companies, as these collaborations will help banks overcome challenges such as lean budgets, outdated systems and the need for specialized skills to implement and manage AI solutions. Fintech partnerships can provide turnkey solutions, enhance risk management and deliver actionable, data-driven insights, ultimately helping banks to scale their offerings and improve customer satisfaction.
Danielle Sesko, Director of Product Management and Innovation, TruStage™
As we move into 2025, digital lenders will continue to face issues related to defaults. Increased availability of embedded finance options will increase these risks, so lenders expanding into digital loan products will need strategies like embedded Digital Lending Insurance (DLI), which can protect against borrowers' inability to pay in light of specific, commonly occurring insurable risks, to help mitigate them.
Other key trends to watch include potential regulatory changes around BNPL, data privacy and lending practices, making compliance crucial for smooth operations. Finally, financial inclusion will remain a top priority. Ensuring embedded digital lending options meet the needs of underserved communities without exacerbating financial inequality will be key for everyone.
Jack Henry Corporate Strategy Team
Deposits, lending, fraud, payments, and open banking will be key trends in 2025. Stabilizing deposit growth presents opportunities, but yield-hungry consumers and maturing short-term CDs will challenge financial institutions to prioritize personalization, innovation, and flexibility. Collaborating with AI vendors will help financial institutions efficiently fund loans and scale without losing their personal touch. Fraud prevention will benefit from stronger cross-sector collaboration to address scams and improve identity verification. Payment solutions will help businesses and consumers optimize their cash flow. As open banking matures, financial institutions will provide consumers with a central hub for managing data and privacy settings.
Michael Ball, EVP Marketing, Kinective
In 2025, AI will continue to reshape banking, but the focus will shift to practical, customer-centered adoption. The real challenge for banks lies in distinguishing hype from reality—what will drive meaningful value for customers versus what’s merely a trend. AI has the potential to revolutionize banking by enhancing personalization, automating processes, and improving customer service, but its success will depend on real-world application. Customers want seamless, secure, and compliant experiences—whether through smarter fraud detection, more efficient lending processes, or intuitive self-service tools. Banks must embrace AI in ways that build trust and deliver clear benefits to customers while navigating regulatory requirements. While we’re at the peak of the AI hype cycle, 2025 will begin to reveal what’s truly impactful: solutions that foster efficiency, strengthen relationships, and provide measurable outcomes for banks and their customers. The winners will be those who turn AI's potential into everyday reality.
Matt Potere, CEO, Happy Money
Also, use of AI for credit decisioning, loan verifications and customer service is likely to accelerate. However, banks should stay focused on prudent risk management practices.
Erin Wynn, Executive Director, Product Management, Candescent
Rising financial anxieties, rate fluctuations, and mixed messages about AI have added complexity to financial services this year. Looking forward to 2025, we expect banks to embrace the opportunity to offer relevant, personalized and contextual financial resources to support consumers as financial struggles persist.
Also next year, banks will separate substance from noise as AI shifts from another buzzword to a powerful tool in a bank’s arsenal. Those that conduct proper due diligence on potential partners and applications, ensure there is clean, actionable data in place, and establish a comprehensive AI policy and plan will be best positioned for success.
Gary Singh, President, Zeta, North America
In 2025, regulatory priorities will evolve, emphasizing a balance between fostering innovation and maintaining consumer protection and financial stability. This shift will drive investments in compliance technologies, including AI-powered fraud detection and automated reporting. Companies will adopt adaptive fintech solutions to meet these demands efficiently. It’s also a year for banking and fintech to strengthen transparency, improve collaboration with regulators and refine operational practices to address heightened compliance and security expectations.
Keith Riddle, General Manager, Payfinia CUSO
2025 will produce explosive growth in embedded instant payment capabilities. The FedNow Service represents over 1,000 financial institution participants, and the RTP network routinely processes over 1 million transactions PER DAY. We would expect this trend to continue in 2025, as consumers and small businesses have become accustomed to seamless money movement experiences via Fintech platforms and demand the same level of access from their bank.
Tori VanCura-Rutland, Chief Growth Officer, HC3
In 2025, banks can transform monthly statements into valuable tools by leveraging transactional data to uncover trends, offer tailored insights and deepen customer relationships. It is not about “pretty statements” anymore – it is about purposeful, data-driven engagement. Banks that make statements a strategic part of the customer journey will drive loyalty, retain customers and provide added value. Losing customers is costly, but prioritizing personalized, actionable insights can turn statements into a critical retention tool, keeping customers connected and invested.
Meredith Keller, Product Expert, Glia’s AI Team
AI will continue to be a disruptor in financial services, offering banks the opportunity to streamline operations, improve customer experiences and drive innovation. However, it’s critical to adopt AI thoughtfully and responsibly. The right safeguards must be in place, enabling AI to be implemented securely, protecting customer privacy and data while maintaining trust.
By following a responsible AI framework, more banks will look to unlock AI's full potential while upholding safety, compliance and effectiveness. Prioritizing proven, secure and turnkey AI solutions will be crucial, enabling innovation and strengthening customer relationships without compromising security or compliance.
Isio Nelson, Managing Director, Thought Leadership, Fraud & Research, ProSight Financial Association
Our research indicates the top challenges in 2025 for financial services organizations will be deposit growth and new customer acquisition, while also focusing on operational efficiency. Similar to 2024, top investment priorities include technology integration, improving customer digital experiences and fraud mitigation.
Fraud concerns continue to grow across all generations. To improve in this area, organizations are leveraging increased employee training, enhanced customer communications and new technology to protect their customers and organizations.
Dr. Siva Narendra, CEO, Tyfone
Digital Banking++ is the next frontier in financial technology. It transforms digital banking into a platform that delivers efficient, secure, and convenient financial experiences. This strategy is built on the principles of Moore’s Law, Nielsen’s Law, and Huang’s Law, which predict exponential growth in computational power, network speeds, and AI capabilities. These laws are driving solutions in fraud prevention, real-time payments and AI-powered personalization and ensure financial institutions set new benchmarks for trust, convenience and resilience.
In 2025, Digital Banking++ will integrate instant payments, AI-driven intelligent banking, and robust security measures into a single platform, allowing banks to stay competitive without losing their unique brand. Partnering with tech-forward fintechs strengthens a bank's ability to engage directly with its customers, ensuring that the bank remains at the center of the relationship. By arming banks with digital tools – like real-time payments and AI – that improve the financial lives of their customers, banks remain relevant, competitive, and central to their communities in an increasingly digital world.
Will Bryant, COO, Quantalytix
As banks benefit from the deregulatory intent of the new administration and the promise of AI in the medium-to- long run, having a robust, scalable, and encompassing
data strategy and infrastructure will be critical to execution and informed
decision making. Without a sounds Enterprise Data Management strategy,
organizations will risk making uninformed strategic decisions that may not
capture the potential opportunities ahead.
Barry Adcock, Sales, Quantalytix
One of the key use cases for banks’ data management strategy will be to analyze and better understand their core deposit base. Capitalizing on the data on these customers to identify opportunities to grow wallet share with targeted marketing, empowering future AI models to predict depositor behavior as economic cycles evolve will allow for more strategic cost of funds management and net interest margin optimization.
Tony Nigrelli, VP of Mesh & Delivery, Core10
A pro-business policy environment in 2025 is likely to drive economic expansion, accelerate business growth, and fuel increased bank M&A activity. In this landscape, operational efficiency, strategic data management, and risk transparency will be vital to ensure success and compliance with evolving regulations. Remaining competitive will require banks to adopt agile, interconnected data systems that eliminate silos, enable real-time insights, and support informed decision-making. This approach will help institutions to capitalize on growth opportunities and proactively navigate risks.
Shelby Austin, CEO, Arteria AI
The market continues to demand solutions that are highly contextual and tangible. 2025 will place an even bigger premium on the software that delivers the power of modern AI in productive formats to end users. The lion’s share of value will come from highly contextual applications that act as the last-mile delivery of AI into the workflow. AI, like any tool, is only as impressive as the value it drives, and solutions that are built-for-purpose will be best positioned to capture the momentum.
Allan Rayson, Founder, Finov8r
2025 will be the year of the adoption of AI
and Large Language Models among the community and regional banks. Banks are
going to be looking under every rock for ways to enhance profitability. Gaining
efficiencies through the adoption of AI will be one of the ways they find it in
2025 and beyond.
Mac Thompson, CEO & Founder, White Clay
In 2025, financial institutions will prioritize relationship-focused business models to compete for customers’ operating accounts. While many financial institutions believe they already operate in this way, our recent survey showed that 68% of FI users do not feel known by their primary institution, and 50% would consider switching to another bank or credit union that offered more personalized financial guidance. By leveraging customer/member data, institutions can gain a comprehensive view of accountholder relationships, enabling them to tailor advice, products, and pricing. This deeper visibility drives long-term loyalty and establishes institutions as trusted advisors.
Beth McCoy, President, RewardOps
In 2025, financial institutions’ loyalty strategies will mature in three areas bringing customers’ perceived personal value to new levels. Firstly, personalization will make a comeback. Rewards within loyalty programs have grown overly transactional recently, but 2025 brings a shift toward tailored, trust-building experiences. Secondly, institutions will eliminate fragmented loyalty programs, prioritizing full-service providers to deliver a frictionless customer journey. Lastly, loyalty strategies will be shaped around consumers’ preferences and behaviors. Knowing that 73% of Americans prioritize reward-related factors, according to our recent survey, can help institutions tailor their loyalty programs to better meet customers’ expectations, boost engagement, and improve satisfaction.