Core Insights - The European banking industry is facing significant changes in 2025 due to political and economic uncertainty, competitive pressures, and compliance requirements [2] - Financial institutions are under pressure to enhance customer service while reducing costs, leading to increased technology investments [3] Technology Investment Trends - There is a growing urgency for banks to invest in product development to improve revenue and margins, with a focus on agility and operational efficiency [3] - Digital account opening, open banking, and enhancements to digital channels are key areas for resource allocation [4] AI and Data Analytics Adoption - Strong growth in AI and advanced data analytics technologies, including GenAI, is expected to support various use cases across banking operations [5] - Investments in data management from 2024 will continue to underpin these projects, with a focus on digital identity and automation [6] Key Findings from Research - 54% of banks find it more challenging to win and retain customers compared to the previous year [7] - 50% of banks prioritize investing in enhanced products or propositions as a key driver of their technology strategy [7] - IT spending is projected to grow by an average of 5.0% this year, although economic disruptions may affect this growth [7] - Digital account opening is the top priority for 38% of banks, followed by open banking and improvements to digital channels [7] - AI technologies represent the largest area of technology investment for 29% of banks, with 64% planning to launch customer-facing services using GenAI in 2025 [7]