Key Technology Trends in 2025
Financial institutions must keep an eye on the technology landscape to remain competitive. Aside from the top standout, bankers generally agreed on the key technological trends:
Artificial Intelligence (AI)
For the second year, AI was named as the most impactful technology trend, with 33% of respondents recognizing its transformative potential. This endorsement follows years of headlines around AI’s potential to revolutionize risk management, customer service and more.
Real-time Fraud Detection
As fraud continues to skyrocket, 17% of bankers selected real-time fraud detection as the top technology trend poised to affect the industry in 2025.
Banking as a Service (BaaS)
BaaS emerged as another impactful trend, capturing 17% of respondents’ votes. This trend allows collaboration between financial institutions, fintechs and neobanks to champion innovation.
Digital Transformation
Digital transformation followed closely at 16%, highlighting the focus on digital channels for streamlined processes and delivering elevated customer experiences.
APIs/Open Banking
APIs and open banking garnered 11% of the vote, a slight increase from last year’s results at 7%. Open banking through APIs provides potential for every bank, from automated workflows to integrated platforms.
Instant Payments
The Fed’s instant payments network launched in 2023, leading instant payments to receive 6% of the vote.
Industry Insight
The trends above reflect a rapidly changing financial landscape, where technology shapes how banks operate. AI is driving the industry conversation as banks explore the advantages and risks of this technology, including related solutions like real-time fraud detection.
BaaS continues to garner bankers’ interest, though slightly less than the 20% reported last year. A BaaS model involves nonbank companies offering financial services by partnering with a financial institution and utilizing its regulated banking infrastructure. Built on the foundations of an open banking framework, BaaS uses APIs to access banking functionality. However, banks should understand the regulatory environment and requirements when evaluating a BaaS partnership.
Most banks are well on their way to some type of digital transformation, having implemented digital banking and online account opening. Banks should avoid becoming stagnant in this process and continue improving the user experience on digital channels.
Expert Perspective
For many banks, AI represents an area of heightened focus and buzz, but many are still in the process of understanding how to manage AI in a regulated industry. AI engines are becoming more popular to boost business functions, but banks must understand how their data will be used to avoid unintentional disclosure.
As AI unlocks opportunities for fraudsters by making it easier to execute social engineering attacks, it’s no surprise bankers identified real-time fraud detection as a top trend. From synthetic identity fraud to check fraud, AI-powered solutions that analyze copious amounts of data stand to help institutions fight back against these evolving threats.
Although only 11% identified open banking/APIs as a top trend, institutions who embrace open banking and provide their customers with best-of-breed products and services will be better positioned to navigate the competitive banking landscape.
“We hope to use AI technology to further enhance risk prevention capabilities and business security levels.”
Source: Survey Participant