Research firm Forrester has declared its top predictions for the banking industry in 2025.
In 2025, banks will have to prepare for two major challenges, according to a report by Forrester. First is a drop in profitability, amid ongoing interest rate cuts. The second is a further decline in the quality of customer experience as banks implement digital self-service strategies that will fail to result in positive feedback.
«But fear not, because there is a solution to this double whammy: innovation,» said Alyson Clarke, principal analyst at Forrester.
AI, SNPL and Real-Time Processing
The report highlights three predictions for the upcoming year.
Firstly, 2025 is expected to be a breakthrough year for conversational banking as AI capabilities are leveraged to make in-app bots «smarter and more useful to customers». Secondly, the adoption of the so-called «save now, pay later» (SNPL) model will accelerate. Thirdly, real-time processing will be the default for financial transactions such as payments, funding, open banking, fraud assessment and cross-border money movement.
«Banking executives must step up their game on product and service innovation, particularly in the areas of conversational banking and deposit offerings, if they want to stay competitive and earn customer loyalty,» Clarke explained. «It won’t be an easy ride, as legacy infrastructures and vexatious regulatory compliance issues will put a damper on the innovation party.»
