A digital revolution is taking place in banking, the number of adults in the UK with digital-only bank accounts has risen to 40%, up from 9% 6 years ago. Emerging technology is reimagining how financial institutions operate at every level. New technologies are being launched from AI tools to cloud computing to blockchain and so much more.
With demand from customers for a faster, more personalised service banks need to embrace these innovations but to understand the challenge ahead, we need to look at what the key banking tech trends are in 2025.
Top 5+ Banking Technology Trends in 2025
The rapid development of fintech innovation can feel tricky to keep up with, but there are some key banking technology trends that stand out so far in 2025. Here are six that you need to take note of:
AI-driven personal finance assistants
AI-driven tools are already appearing in our banking apps, summarising spending trends and analysing your spending. These will keep evolving, offering unprecedented personalisation, efficiency and advice. By 2027 it’s thought that AI-driven investment tools will be the primary source of advice for retail investors.
Blockchain for real-time settlements
With governments and financial institutions looking to find faster, more secure methods of transferring funds internationally, blockchain is being integrated into fintech innovations. Blockchain removes the need for multiple intermediaries, as well as settling transactions faster, more securely, more cost-effectively and with better traceability.
Embedded finance and BaaS (Banking-as-a-Service)
This trend sees banking capabilities integrated into non-financial platforms, allowing businesses the opportunity to offer payments, lending and account services directly within their applications, creating a more seamless customer experience. This isn’t without risk as there’s a fine balance between adding value to customers and sustainable, compliant operations.
Cloud-native core banking systems
These systems are replacing legacy mainframe infrastructures with microservices-based architecture built for the cloud. A report by IBM found that 73% of respondents found that cloud-native development offered faster development and roll-out of new apps and tools. These platforms enable banks to rapidly deploy new products and services. With so many developments in the banking industry, cloud-native core banking systems empower banks to react quickly to market changes.
Generative AI in customer service
Generative AI is already going beyond basic chatbots, and over time we’ll see it becoming more sophisticated and a cornerstone of customer service. Utilising the power of AI allows banks to deliver a highly personalised, faster and more relevant interaction, giving customer service satisfaction a much-needed boost.
Cybersecurity innovations
At the heart of every single technology innovation within the banking industry is cybersecurity. Cybersecurity has to be one step ahead of every development and the proliferation of AI is making that far harder. Banks are having to invest in robust cybersecurity innovations such as threat detection, zero-trust architecture and quantum-resistant encryption to combat sophisticated cyber threats.
How Banks Can Adapt to These Trends
A digital transformation is happening in the banking industry, and with it comes a choice by institutions to future-proof themselves and their financial services, or to become obsolete. In order to stay competitive, banks need to look at their teams.
Without the right people with the right skills in place, it’s impossible to deliver and embed new technologies successfully. Yet it’s unlikely that you have all the talent you need already in position. That’s why banks need to develop a talent strategy to ensure they’re hiring the top talent and able to retain them.
Alongside new hires, banks also need to look at their existing teams and how they can upskill them. It’s not simply a case of bringing in new talent with technical skills, current employees have a wealth of knowledge and experience, which is equally beneficial. When that legacy knowledge is combined with training pathways to keep up-to-date, you’re in a strong position to succeed.
Staying ahead of the curve is about more than just the people. It’s about making sure their cloud and digital infrastructure is fit for purpose, and that relies on investment. Embracing digital transformation can be daunting, but for any bank looking to carve out a long-term future, it’s essential to make key investments in its own digital journey.
Recruitment Solutions for Tech-Driven Banking
Demand for Fintech roles is expected to increase by 32% this year, making hiring tech talent a challenge. Without the right talent in place, it’s almost impossible to successfully capitalise on new fintech innovations; that’s why banks should look to work with a recruitment agency to build their digital banking team.
Skills such as AI, cybersecurity, blockchain and cloud are still emerging, meaning there’s a limited number of people with the expertise to deploy these technologies at scale successfully. Recruitment agencies can utilise their extensive networks to identify, attract top fintech and banking tech talent.
There’s no denying that new trends and developments in fintech are transforming the banking industry. It’s time to embrace these trends by investing in the right technology and the right talent.
Connect with our experts to build your future-ready team today.
