Retail banking top trends 2025

Industry Investment Rating - The report does not explicitly provide an overall industry investment rating, but it highlights significant trends and opportunities in the retail banking sector that could influence investment decisions [1][4][5] Core Report Viewpoints - The report identifies three broad themes for 2025: Customer First, Enterprise Management, and Intelligent Industry, focusing on transforming customer experience, operational efficiency, and leveraging modern digital solutions [3][4][5] - Retail banking trends emphasize omnichannel experiences, financial literacy, operational resilience, and AI-driven efficiency gains [6][11][12][42][74] Retail Banking Trends Customer First - Omnichannel experience: Retail banks are enhancing customer journeys across digital platforms, contact centers, and branches to create seamless interactions [11][18][20] - Financial literacy: Banks are leveraging apps and educational programs to boost customer confidence and promote financial inclusion [24][27][29] - Next-gen banking: Retail banks are targeting younger customers with tailored services to secure long-term growth [32][35][36] Enterprise Management - Operational resilience: Digital operational resilience is critical for regulatory compliance, with banks investing in cybersecurity and IT security measures [42][45][46] - RegTech for compliance: Intelligent RegTech solutions are reducing compliance costs and timelines, helping banks manage escalating risks [52][55][56] - Deposit growth: Deposit growth remains a priority, with banks focusing on lowering funding costs and targeting specific customer segments [59][62][63] Intelligent Industry - AI for efficiency gains: Artificial intelligence is driving productivity by reimagining customer and employee journeys, with banks investing in AI-powered tools [74][77][78] - ESG product strategy: Banks are implementing intelligent ESG product strategies to meet regulatory demands and customer expectations [82][85][86] - Leveraging open finance: Open finance regulations are enabling banks to develop a 360-degree customer footprint, improving data access and personalized services [92][95][96] Case Studies and Examples - RBC Royal Bank and NatWest are examples of banks implementing omnichannel strategies to enhance customer experience [21] - Chase and Regions Bank are expanding financial literacy initiatives to underserved communities [30] - Barclays and Arab National Bank are enhancing digital security and operational resilience through strategic partnerships [50] - J P Morgan Chase and Commonwealth Bank are leveraging AI to boost employee productivity and loan processing efficiency [80] - Bank of Ireland and NatWest are integrating ESG data into their product offerings to meet sustainability goals [89][90]