The financial services landscape is transforming at an unparalleled pace, driven by digital innovation, fintech disruption and evolving customer expectations amidst global challenges like cost-of-living pressures.
So, what does the future hold? How can financial institutions, both traditional and new challengers, thrive in this dynamic environment?
Drawing insights from over 200,000 consumers and 60,000 businesses worldwide, our latest report unveils five trends set to redefine financial services in 2025. It focuses on consumer and business needs and attitudes to provide actionable advice to help financial service organisations better meet their customers’ needs.
Customer retention is more crucial than ever, with fragmenting relationships, intensifying competition from fintechs, and the demand for more personalised, tech-driven approaches to customer engagement.
As digital transformation accelerates, AI is revolutionising security, fraud prevention and personalised services. Whilst some consumers remain cautious about new technologies, others embrace the convenience they offer.
Five trends shaping the future of financial services
1. Winning loyalty in a world of change:
Customer retention in turbulent times: In a world where cost-of-living pressures and new competitors are driving consumer choice, loyalty is at risk. Financial institutions must adopt innovative approaches to reward and retain customers, addressing evolving expectations while providing tangible value to stay competitive in this shifting landscape.
2. The digital edge: fintech, AI and the future of financial services:
The digital revolution is advancing at an unprecedented pace, fuelled by fintech, AI and shifting customer expectations. To stay competitive, financial institutions must anticipate and meet these evolving needs and empower their customers at every touchpoint.
3. Navigating market volatility:
The impact of rate shifts on consumer saving and borrowing: Interest rate fluctuations are reshaping savings and borrowing behaviour, leading consumers to increasingly focus on flexible financial products. Financial institutions must navigate shifting trends, including heightened consumer interest in savings accounts and loan refinancing. They must deepen relationships and retain savers while preparing for opportunities in a lower-rate environment.
4. The wealth advantage – the rise of the emerging affluent:
Affluent segment is becoming a significant global financial force, driving demand for sustainable, globally diversified investments and long-term financial security. Their focus on ESG investing, global diversification and risk-managed products like ETFs offers financial providers opportunities to capture this dynamic, forward-looking segment through tailored solutions that balance growth with stability.
5. Unlocking cross-border payments – driving growth and customer acquisition:
Cross-border payments are essential to global trade, yet inefficiencies present challenges and opportunities. As businesses expand internationally, financial institutions must enhance the speed, transparency, and cost-efficiency of cross-border transactions to capture growth and improve customer satisfaction, unlocking revenue potential in a competitive space.
Download our free report to discover how consumer and business behaviours around the world are evolving and what 2025 holds. The full report provides data-driven insights on each trend, explores how these behaviours unfold by region (Europe, North America, UAE, Australia and APAC) and the implications facing financial services providers.
