State of the Banking Industry Research and Outlook for 2025

This research report provides an analysis of the banking industry as it approaches 2025, based on a survey of 345 C-level executives from financial institutions of various sizes. The report outlines the economic environment in 2024, highlighting improved liquidity and manageable interest rates, which contributed to lower-than-expected credit losses. Key themes include digital transformation, banking as a service (BaaS), and artificial intelligence (AI), with a significant portion of institutions planning to deepen their AI engagement. The report details the strategic priorities of financial institutions, emphasizing the importance of improving digital engagement, managing talent, and leveraging data analytics. Cybersecurity remains a top concern, with many institutions increasing their investments in protective measures. The report also notes the challenges posed by regulatory environments and the need for financial institutions to adapt to the evolving preferences of younger consumers, particularly Gen Z. Overall, the findings indicate a positive outlook for growth in the banking sector over the next year.