Digital Banking Trends 2025

The integration of artificial intelligence (AI) in banking has evolved significantly since the ChatGPT-driven AI boom of late 2022. While banks were initially quick to explore the potential of AI - with studies showing 52% of banks already working with machine learning - 2024 saw a more cautious approach due to increased concerns about data privacy and regulatory compliance.

But 2025 looks to be the year things change, thanks to maturing AI governance frameworks and growing trust in the technology following a number of successful implementations of AI across the sector.

Expect to see banks introduce AI assistants that serve personalised financial insights and advice to customers through web and mobile banking apps. 2025 will see AI ‘chatbots’ transform into fully-fledged digital financial assistants, combining their conversational abilities with sophisticated financial analysis and proactive guidance.

The upcoming generation of AI banking assistants could transform customer experiences in several significant ways:

• Personalised financial guidance: AI will spot patterns in spending and banking habits, and give timely tips and suggest suitable products. It will also warn you about problems before they happen.
• Context-aware conversations: AI assistants will communicate more naturally, using customer insights. They’ll help with complex tasks like finding transactions, managing cards and making payments. They’ll also remember your earlier questions to have more flowing conversations.
• Secure integration: Banking AI assistants will use strong security like FIDO-based authentication and end-to-end encryption to protect your personal information.

Why should banks take note? Implementing AI banking assistants can help reduce operational costs, increase customer engagement and maintain a competitive advantage in an increasingly digital market. This will build on the existing benefits banks have already seen from implementing AI, including more efficient internal operations and improved customer service.

G+D Netcetera’s AI Banking Assistant enables banks to offer intelligent, conversational banking across their digital channels by combining secure conversational AI capabilities with comprehensive banking functionality.

Open Banking in Europe has required banks to share customer data with approved companies since PSD2. And while the concept of Open Banking has been around for a while, it became a key component of modern finance in 2024.

Open Banking allows third-party providers to access customer data through open APIs, enabling collaboration between banks and fintech companies. This collaboration gives customers access to a wide range of financial services via one single platform and is crucial for banks to adapt their core banking systems to the evolving market needs, as highlighted in the study by the IFZ Bank-IT Forum and G+D Netcetera on modern core banking systems⁵.

After reaching record highs in 2023/4 - with the UK alone seeing 14.5 million Open Banking payments in January 2024, a 69% year-on-year increase - 2025 will see it transform beyond simple account aggregation into a core enabler of embedded finance. While a Boston Consulting Group study showed only 27% of leading banks were significantly involved in collaborative ecosystems previously, this transformation is now accelerating rapidly.

Two key changes are driving this growth. First, Account-to-Account (A2A) payments let customers pay straight from their bank accounts. Second, Banking-as-a-Service (BaaS) platforms help non-banks offer financial products. As we highlighted in our article, How BaaS is revolutionising financial services, BaaS is already helping banks reduce customer acquisition costs from $100-$200 to just $5-35.

This evolution is enabling financial services to be built into other non-banking products and services. And this is creating an open, customer-centric ecosystem. Banks can either act as general providers embedding white-labelled products in non-proprietary ecosystems or focus on dedicated market segments with tailored services for specific platforms and customers.

Key developments in 2025 could include:

• Standardised APIs: The emergence of common API standards, like Berlin Group’s framework, will make it easier for banks to share data and integrate with third parties.
• Embedded lending: More non-financial companies will offer financial products like Buy Now Pay Later (BNPL) directly in their customer journeys.
• Enhanced security: New authentication methods, like FIDO-based biometric authentication, will make Open Banking services more secure while reducing friction for customers.

Why should banks take note? Open Banking and embedded finance create opportunities for banks to reach new customers through third-party platforms. And this opens up new revenue streams through API monetisation and BaaS partnerships.

G+D Netcetera’s modular, API-first solutions and deep expertise in payment security make us a trusted partner for banks looking to leverage Open Banking.

Mobile banking has become the primary way customers interact with their bank. According to McKinsey, mobile banking touchpoints grew 72% between 2020 and 2023, reaching 150 annual interactions per customer. This even surpasses many leading e-commerce players!

In 2025, banks will make their mobile apps the main entry point for all banking services. Forward-thinking banks will use their apps to guide customers to the right service, whether that’s self-help, video chat or visiting a branch.

Key developments will include:

• Intelligent journeys: Mobile banking apps will use AI to understand what customers need and guide them through each task, from simple transfers to big financial decisions.
• Seamless integrations: Banks will develop their mobile apps to connect more seamlessly with their other channels, preserving context as customers move between digital and physical touchpoints.
• Enhanced self-service: Customers will be able to manage more complex tasks from within their banking app, with fewer branch visits or phone calls needed.

Why should banks take note? Banks that develop their mobile offering will outperform their competitors in growth, cost efficiency and customer satisfaction, according to McKinsey research.

G+D Netcetera’s Mobile & Web Banking platform enables banks to deliver best-in-class mobile experiences, like personalised homescreens and intelligent search.

ESG (Environmental, Social, and Governance) compliance is becoming increasingly important in banking, as customers are attaching more and more importance to sustainable and inclusive financial solutions. In addition, accessibility has become a crucial aspect of ESG compliance. Under the EU Accessibility Act, banking services must be provided in an accessible way from 28 June 2025. This directive aims to improve accessibility for people with disabilities as well as older people and to ensure that banking services are inclusive and accessible to all.

According to the Digital Banking Experience Report 2022, 46% of Germans consider ESG criteria to be an important investment criterion, while 28% would use their bank's service to check the carbon footprint of their purchases. This trend can be observed in most European countries as well as in the USA.

Banks need to develop a holistic ESG strategy and implement it consistently. They should keep current and future regulations in mind and ensure that they fulfil them. Clearly communicating these strategies and offerings to customers is crucial for building trust. Currently, banks are first exploring the field of ESG compliance as the regulatory requirements are not entirely defined yet. However, according to Juniper Research⁹, financial institutions are expected to utilise coordinated ESG strategies in 2024 to position themselves as the inclusive, green and sustainable choice.

Banking is changing fast due to advances in AI, changing customer needs and new regulations. In 2025, several key trends will shape banking: AI banking assistants will improve money management, digital advice will improve and mobile services will lead the way. Banks will build their services into other products, develop digital identity systems and strengthen their security too. Banks that successfully integrate these innovations will gain a competitive advantage in an increasingly competitive digital market.

G+D Netcetera is at the centre of the digital revolution as a strong partner for banks. Our modular digital banking platform prepares financial institutions for the challenges of digital transformation. With our solutions, banks not only master the challenges of digital change, but also pioneer new paths in banking. We tailor our solutions to customers' needs and the latest trends to ensure a secure, seamless and future-proof banking experience.

If your bank is interested in partnering with an experienced third-party provider, speak with our experts to see how G+D Netcetera could help.