Top Six Recent Trends to Watch in the Banking Industry in 2025 and Beyond

Financial institutions are coming under increasing pressure to either change or become obsolete as technology advances and client expectations rise.

With all the financial sector’s regulations and the progress of fintech solutions, it’s more important than ever for banks (and investors) to remain sharp, informed, and ready for whatever is coming next.

We have drawn together six emerging banking trends that are reshaping how financial services are being delivered, managed, and experienced.

They’re worth keeping a close eye on, and guidance from the RightAngle expert network can be sought to understand and manage these changes.

Trend #1. Personalization powered by AI technology and risk assessment in banking in 2025 and beyond

Artificial intelligence is now deeply embedded in global banking, and it's no longer just an experiment, helping banks design smarter financial products and deliver more personalized, efficient products and services to their customers.

Many banks now use AI to offer highly personalized financial services tailored to each person's spending habits, financial situation, and evolving customer needs, such as:

• managing savings

• investment advice

• credit options

• and more.

By aligning services with individual preferences, banks can better anticipate and meet customer expectations for convenience, relevance, and proactive support.

As global AI develops at an outstanding pace (by the beginning of 2024, ChatGPT registered more web traffic than that of industry titans like Twitch, Pinterest, and Netflix), banks are leveraging AI-powered tools to deliver hyper-personalized services and smarter risk models.

Trend #2. Cybersecurity in banking: Responding to an expanding financial crime ecosystem with new technologies

Cybercriminals are constantly finding new and creative ways to commit financial crimes (i.e., deepfake scams, phishing with AI).

To keep up, banks and other financial institutions are using advanced technologies such as data analytics and AI to spot threats more effectively and detect fraud more quickly.

For instance, machine learning models can be used to scan large volumes of transactions to detect patterns that are typical of money laundering.

At the same time, regulators are also continuing to strengthen criminal punishment and enforce compliance regimes (e.g., GDPR in Europe, or FinCEN in the U.S.)

Trend #3. Evolution of Banking-as-a-Service (BaaS)

Non-bank platforms such as retailers, ride-sharing apps, and even social media are incorporating financial services such as payment processing, credit, or insurance directly into their ecosystems. This is driving the evolution of Banking-as-a-Service (BaaS).

What is Banking as a Service (BaaS)?

BaaS is a model whereby banks and FinTechs allow other businesses to use their banking services through simple tech tools. The bank handles the regulatory and security aspects while the partner company offers payment services, for example, to customers under its own brand.

For instance, in 2024, UniCredit – a major player in the European banking industry – purchased an entire BaaS platform, while another giant – the Deutsche Bank – forged a strategic alliance with an embedded finance start-up.

The growing need for integrated financial solutions is expected to boost the global BaaS market, which was valued at US$29.5 billion in 2024 and is expected to more than double to hit US$74.8 billion by 2030.

Expert insights into banking strategy suggest that a multi-tiered model, in which banks, FinTech enablers, and consumer brands work together, will determine the future of financial services.

Trend #4. Rising role of the Environment, Social, and Governance (ESG) principles - a key trend in the future of banking

Financial institutions are using ESG analytics to evaluate credit risk, establish green loan terms, and offer climate-friendly investment products, as ESG becomes part of corporate strategies worldwide in an effort to address the issues arising from the global changing climate.

Numerous banks have also committed to achieving net-zero emissions by 2050 by joining programs such as the UN's Net-Zero Banking Alliance, which also influences the way they run their business.

Trend #5. Real-time cross-border payments and Central Bank Digital Currencies

The number of international and global payments is increasing, and real-time cross-border payments along with Central Bank Digital Currencies (CBDCs) mean two significant changes are being made to how money moves around the globe.

1. Faster international payments.

Today, sending money across countries happens within seconds, enabled by new technologies like SWIFT upgrades and blockchain networks.

2. Launch of digital versions of national money (like the digital yuan or digital euro).

CBDCs are being tested or developed in more than 130 countries.

What is CBDC?

A CBDC is a digital version of a nation's fiat currency. It is generated and supported by the central bank, so it is therefore not cryptocurrency and is basically electronic money that works similarly to actual cash but only exists in digital form.

As global money flows advance, banks and financial institutions must answer certain questions:

1. How will different systems work together?

2. How can people’s privacy be protected?

3. How can the system be kept secure?

One solution is to seek expert guidance from platforms like RightAngle Global to help to understand these questions and manage their solutions.

Trend #6. Regulatory Tech (RegTech) and Compliance Automation as a vital banking technology trend

As banks become more digital and face risks, regulations tighten, covering issues such as:

• Blocking and preventing money laundering activities

• Protecting customer data

• Ensuring sufficient liquidity and assets to survive lean times.

Following these rules (compliance) requires substantial investments, which is why banks are now using Regulatory Technology (RegTech).

What is RegTech?

RegTech is a technology-based approach to managing regulatory processes in the financial industry. Basically, these are tools that can simplify compliance, often employing AI and data analytics to:

• Monitor transactions for fraud or suspicious behavior

• Check customers against sanction lists

• Complete and submit regulatory reports automatically

• Speed up customer onboarding (e.g., verifying identity using a phone camera or digital database).

It is therefore no surprise that the RegTech market is growing:

• According to Silent Eight, the global RegTech market is expected to hit US$22 billion by mid-2025.

• AI can detect complex fraud patterns more efficiently than traditional methods and can also reduce false alarms.

• With automation, onboarding a new customer, which used to take weeks, can now take minutes.

Final word

Today, the banking sector is undergoing a rapid transition that is being driven by AI, ESG regulations, and real-time everything. This is why it’s wise for executives, consultants, and investors to remain informed before making important decisions.

Whether you're shaping the future of banking or responding to it, RightAngle is your trusted partner that will enable you to stay one step ahead by connecting you with subject matter experts who can equip you with timely insights, expert perspectives, and strategic intelligence.