As we look ahead to 2025, our industry is poised for transformative change, facing the confluence of continued global economic uncertainty, rapid technological advancements, and evolving customer expectations. Below are just a few of the top trends that Datos Insights believes will shape the landscape over the next one to two years. Our expert team of former practitioners continues to examine these trends (and more!) and is your best resource to help you navigate these turbulent times.
Big Data as the Next Frontier in the Digital Revolution
Financial institutions and insurers are increasingly pivoting to big data as the next frontier in their digital transformation journey. By harnessing the power of sophisticated analytics, financial services firms can gain deeper insights into customer behavior, preferences, and needs. In 2025, we’ll see these institutions leveraging big data and artificial intelligence (AI) to drive personalized offerings, optimize pricing strategies, and enhance customer experiences. This trend will empower these firms to not only retain existing customers but also attract new ones through tailored financial products and services.
Escalating Fraud: C-Suite Support for Fraud Investments
As fraud incidents continue to escalate and regulators wade in, C-suite leaders are increasingly prioritizing the development of robust financial crime strategies to safeguard their organizations, enhance the trust relationship with clients, and maintain regulatory compliance.
Investment in AI-Enabled Cyber Governance, Risk, and Compliance (GRC) Solutions
With cyber threats becoming increasingly sophisticated, boards and the C-suite at financial services firms recognize the critical importance of robust cyber risk management and oversight, prioritizing investments in AI-enabled cyber GRC solutions for use at the Board level. AI technologies can automate resource-intensive manual tasks, streamline compliance activities, and analyze vast amounts of data to identify new risk correlations for the business.
The Growth of Payment Orchestration
As the payments ecosystem becomes more complex, the need for payment orchestration is on the rise. By 2025, we expect FIs to adopt sophisticated orchestration solutions that integrate multiple payment methods and gateways into a single platform. This approach not only streamlines transactions but also enhances customer experience by offering flexibility and speed.
The Deepfake Dilemma: Spurring Contact Center Authentication Innovation
With the rise of deepfake technology, FIs are rethinking their approach to contact center authentication. As scams become more sophisticated, organizations are investing in advanced authentication methods that leverage biometrics, voice recognition, and AI-driven analytics. In 2025, we expect to see the widespread adoption of multi-factor authentication that includes behavioral analysis to ensure the identity of callers, enhancing security and customer trust in the process.
Cloud Security Takes Center Stage for CISOs
As FIs continue to migrate to the cloud, CISOs are placing cloud security improvements at the forefront of their strategies. The shift to cloud computing not only enhances operational efficiency but also presents new security challenges. In 2025, we can expect CISOs to implement advanced security measures across multi-cloud deployments, including zero-trust architectures and continuous monitoring solutions, to safeguard sensitive financial data. The emphasis will be on building resilient cloud infrastructures that can withstand evolving cyber threats.
Extending the Traditional Value Proposition: Tax and Estate Planning
As consumer needs evolve, financial services firms are extending their traditional value propositions to encompass new areas such as tax and estate planning. In 2025, we’ll see a shift toward holistic financial services that integrate tax optimization and estate management into core offerings. This approach not only enhances customer loyalty but also positions FIs as trusted partners in clients’ long-term financial journeys.
Greater Automation Unlocks New Deposit Acquisition Opportunities
Automation is transforming the banking landscape by streamlining processes and improving efficiency. In 2025, we’ll witness a surge in automated solutions for deposit acquisition, allowing banks to offer seamless onboarding experiences for new customers. By leveraging automation, banks can reduce friction, enhance personalization, and quickly respond to customer needs. This trend will lead to more effective marketing strategies, ultimately driving growth in deposits.
Merchant Open Banking Usage: A Threat to Debit Cards
The rise of open banking is reshaping how consumers and merchants interact with financial services. In 2025, we anticipate that increased merchant adoption of open banking will pose a significant challenge to traditional debit card usage. With the ability to initiate direct bank transfers, merchants can offer consumers seamless payment experiences while reducing transaction fees. This shift could lead to a decline in debit card transactions, prompting banks to rethink their payment strategies and innovate to retain customer engagement.
The Generative AI (GenAI) Ecosystem Explosion
As solution providers race to embed GenAI, effective integration of information and transactions is creating a new competitive landscape. These integrated ecosystems look to reshape relationships between insurers and supply chains.
Scam Control Demand Amplifies as Regulatory and Market Pressure Reach Peak Intensity
The surge in authorized payment fraud and real-time payment risks is spurring needed innovation and collaboration in financial crime prevention and detection. With generative AI lowering barriers for criminals, some firms are building bespoke transaction monitoring models and segmenting interdiction tactics by customer demographics and scam types. In 2025, the industry will be rallying around more proactive measures, including education campaigns, advanced detection systems and aggregated risk intelligence sharing, to fortify defenses against this evolving threat landscape. The financial services landscape in 2025 promises to be dynamic, driven by technological advancements and an evolving consumer base. By focusing on innovation and customer-centric strategies, the industry can navigate the complexities of the future and continue to thrive in a rapidly changing environment.
