4 Banking Trends of 2025 to Act on NOW
As the banking industry continues to evolve, community banks and credit unions must stay ahead of competitors to deliver the exceptional experiences account holders have come to expect. With that in mind, here are some of the top trends shaping the future of banking in 2025 — and how financial institutions can use them to drive innovation and a competitive advantage.
Trend #1: Balancing digital-first strategies with a consumer-centric approach
What’s happening?
Despite the drive for digital banking and its conveniences, people still highly value human interaction. Consumer research firm J.D. Power found that consumer satisfaction is highest when there’s a mix of digital and branch-based engagement. (Interestingly, consumers who solely banked digitally were the least satisfied.)
Front-line employees are as important as ever, not just as the face of the financial institution but, as Oracle described it, “the custodians of trust in the customer-bank relationship in banking in 2025.”
What can your financial institution do?
Ensure you’re not missing the digital train, but don’t lose sight of your mission and dedication to your account holders and community. Your people are still your biggest asset.
Trend #2: Leveraging a 360-degree view of account holders for hyper-personalization
What’s happening?
Data is everywhere; the key is knowing how to harness it to deliver insights-driven strategies, communication and services. Having a comprehensive view of account holders lets you provide more personalized banking experiences — something 74% of consumers across generations desire (yet only 22% say they’re getting regularly from their financial institutions), according to a 2024 Harris Poll.
What can your financial institution do?
Stand out from the competition — make data intelligence a priority in 2025 by adding talent (without growing your payroll) with the expertise and experience to deliver actionable insights from the data you have on hand. Partnering with the right fintechs will help you accelerate digital innovation, personalize your marketing efforts, streamline operations and offer relevant products and services to the right account holders at the right time.
Trend #3: AI’s growing influence and the rise of “invisible banking”What’s happening?
Banks and credit unions are joining the AI revolution, changing their operations to offer a more responsive and seamless user experience. This includes AI-powered conversational analytics to process conversations in real time to resolve calls faster, as well as generative AI to streamline operations and enhance decision-making, and agentic AI for advanced market intelligence, account holder interaction and fraud detection.
This shift gives rise to “invisible banking,” which American Banker defines as behind-the-scenes banking embedded in everyday activities. While we’re not there 100% yet, it is projected to happen in the next five years — or sooner, given the rapidly increasing capabilities of AI.
What can your financial institution do?
If you haven’t already, develop an AI strategy and roadmap. Investigate, experiment and implement what works. Leadership should foster a culture of excitement and trust around AI through transparent discussions and team-specific use cases. Providing thorough training and upskilling will help alleviate employee fear and discomfort about the technology and changes. By embracing an AI journey, you can better prepare your financial institution for upcoming tech shifts while enhancing the uniquely human touch and experience you deliver.
Trend #4: Local banks winning trust as consumer confidence in global banks deteriorates
What’s happening?
As societal trust in global financial institutions declines, PwC suggests account holders will switch to smaller and more local banks, credit unions and specialized micro-niche institutions. Indeed, it already seems to be happening: a recent study showed that there is an uptick in community banks’ and credit unions’ share of primary credit cards. Plus, one in four respondents said they’re most likely to use either a credit union or community bank for their next credit card application.
What can your financial institution do?
Adopting modern fintech tools allows you to compete with larger banks while maintaining local appeal and community connection. A personal touch combined with enhanced mobile apps, digital lending, strong cybersecurity and a digital engagement strategy that increases debit card swipes will build account holder trust and loyalty.
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With this new year come challenges but also unprecedented opportunities through technological advances and a shift in mindset. The community banks and credit unions that come out ahead are the ones who take action, embrace change and find the right partners to keep them at the forefront of innovation.
Reach out to an expert at Velocity Solutions today to discuss digital solutions, including retail performance, consumer liquidity and how to make your data work harder for you.