Capital markets top trends 2025

Industry Investment Rating - The report does not explicitly provide an overall industry investment rating, but it highlights significant trends and opportunities across various sub-domains within the financial services sector, particularly in banking, capital markets, and sustainability [7][8][9] Core Report Viewpoints - The report identifies three broad themes driving the financial services industry: Customer First, Enterprise Management, and Intelligent Industry, focusing on transforming customer experience, operational efficiency, and leveraging modern technologies [5][7][8] - Key trends include the adoption of Generative AI, DLT & tokenization, sustainable finance, and modernized resilient platforms to enhance efficiency, compliance, and customer satisfaction [7][8][63][71] Banking Sector Trends Wealth Management - Seamless digital experience: Wealth firms are consolidating services on digital platforms to create seamless customer experiences [7] - Hyper-personalized advisory: AI enables tailored investment advice strategies, catering to high-net-worth individuals (HNWIs) across generations [7] - Real-world asset tokenization: Blockchain-powered tokens improve liquidity and access to assets [7] Retail Banking - Omnichannel experience: Retail banks are enhancing customer journeys across digital platforms, contact centers, and branches [7] - Financial literacy: Apps promoting financial literacy and personal budgeting are boosting customer confidence and inclusion [7] - Next-gen banking: Banks are targeting younger customers to secure long-term growth [7] Payments - Open finance: Regulators are improving financial data access, enabling growth in open-finance-based use cases [7] - Instant payment adoption: Instant payment rails are replacing checks and debit cards, while mobile wallets dominate [7] - Cross-border payments: Multi-territory instant payment corridors are revolutionizing cross-border transactions [7] Capital Markets Trends Key Drivers - Perpetual KYC revolution: Digitizing and automating KYC processes to reduce compliance costs and enhance customer experience [9][13] - Accelerating sustainable lending: Banks are leveraging green lending and sustainable finance as growth engines [20][23] - Changing investment landscape: Organizations are adapting to passive investing, retail investor growth, and geopolitical forces [31][34] Technology and Innovation - DLT & tokenization: Increased integration of distributed ledger technology and tokenization is transforming financial services [63][65] - Generative AI: Capital markets organizations are using Gen AI for actionable insights, efficiencies, and differentiation [71][74] - Modernized resilient platforms: Legacy system limitations are driving firms to modernize core systems for scalability and resilience [55][57] Sustainability Trends Sustainable Finance - Green asset financing: The need for sustainability is reshaping the investment landscape, with banks focusing on green lending and ESG-compliant products [8][20] - Decarbonization of portfolios: Stakeholders are prioritizing low-carbon investments to reduce carbon footprints [8] - ESG risk criteria: Financial institutions are incorporating ESG factors into investment strategies and risk management [8] Regulatory and Operational Shifts - Increased regulation: Enhanced regulatory frameworks are reshaping corporate accountability through rigorous ESG standards [8] - Industrialized climate risk modeling: Financial institutions are intensifying efforts to assess and disclose climate-related risks [8] Case Studies and Examples - JPMorgan Chase: Enhanced KYC operations through AI, aiming to process 230,000 KYC files by 2025 with 20% fewer staff [18] - Barclays: Committed to financing USD 1 trillion of sustainable financing by 2030, launching green bonds and climate advisory services [29] - Euroclear: Modernizing its settlement system, CREST, to enhance operational resilience and client value [58] Future Outlook - Global accelerated settlement: The drive for a global T+1 settlement cycle continues, with the UK and EU pushing forward with plans [81][84] - Transaction reporting optimization: Firms are focusing on efficiency and control following recent regulatory rewrites [92][95]