Digital Banking News and Trends in 2025

Digital banking is evolving rapidly, and 2025 is shaping up to be a pivotal year for the industry. Mobile banking apps will continue to dominate, with 75% of digital banking users preferring to manage their accounts through their smartphones.

Artificial intelligence (AI) is also expected to play a bigger role in digital banking, with 60% of banks planning to implement AI-powered chatbots to improve customer service. This will enable customers to get instant answers to their queries and resolve issues more efficiently.

The rise of open banking will also continue in 2025, with 85% of banks planning to adopt the open banking model, allowing customers to share their account data with third-party providers. This will lead to increased innovation and competition in the market.

Digital payment methods will also become more prevalent, with 55% of customers expected to use mobile wallets for transactions.

Broaden your view: Online Banking and Mobile Banking Difference

Habib Bank AG Zurich has chosen nCino's Cloud Banking platform to power its UK buy-to-let lending business. This move aims to enhance the bank's digital capabilities.

FirstOntario Credit Union has modernized its digital banking channels with Temenos Digital. This upgrade will support the credit union's online and mobile channels for consumers and small businesses.

Several financial institutions are upgrading their digital banking platforms. Solidarity Community Federal Credit Union has partnered with Mahalo Banking for a digital banking upgrade, integrating Mahalo's online banking tech directly with its Corelation Keystone core banking system.

Check this out: European Banking Union

Chime, a US fintech company, has reportedly submitted a confidential filing for a potential initial public offering (IPO) in 2025.

Bloomberg is citing sources familiar with the matter, suggesting that Chime is targeting a public debut in 2025.

Chime's IPO plans are still in the early stages, with more information expected to be revealed in the coming months.

The exact terms and details of Chime's potential IPO are not yet available, but this development marks an important milestone for the fintech company.

Chime's decision to pursue an IPO could have significant implications for the digital banking industry as a whole.

FinTech Futures will continue to monitor the situation and provide updates as more information becomes available.

For more insights, see: Chime Bank

FirstOntario Credit Union has modernised its digital banking channels with Temenos Digital. This move will support the credit union's online and mobile channels for consumers and small businesses.

Temenos Digital will provide the necessary tools for FirstOntario Credit Union to enhance its digital offerings. This is a strategic decision to stay competitive in the market.

The integration of Temenos Digital will enable FirstOntario Credit Union to offer a seamless and user-friendly experience for its members. This is crucial in today's digital age.

FirstOntario Credit Union is not the only one to make this move, as other financial institutions have also upgraded their digital banking systems.

Milli Bank, a US digital banking platform, closed down on November 15th. This was a surprising move, especially considering the rise of digital banking in recent years.

The platform offered a savings and spending account, providing users with a convenient way to manage their finances.

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FinTech Futures revisited the top AI news stories from 2024, and it's clear that AI had a significant impact on the industry.

In 2024, FinTech Futures identified the top five AI news stories of the year, highlighting the growing importance of AI in digital banking.

The year 2024 saw a surge in AI adoption in the financial sector, with many banks and financial institutions investing heavily in AI technology.

According to FinTech Futures, 2024 was a year of significant AI advancements, with several breakthroughs and innovations in the field.

One of the top AI stories of 2024 was the increasing use of AI-powered chatbots in digital banking, making it easier for customers to manage their accounts and get assistance.

AI-powered chatbots were able to handle complex customer queries, freeing up human customer support agents to focus on more complex issues.

The use of AI in digital banking also led to significant improvements in security, with AI-powered systems able to detect and prevent cyber attacks more effectively.

Discover more: Know Your Customer News

In 2024, AI was also used to improve the overall customer experience in digital banking, with personalized recommendations and offers being made to customers based on their financial behavior.

Overall, the top AI stories of 2024 highlighted the growing importance of AI in digital banking and its potential to drive innovation and improvement in the industry.

Fintech funding is on the rise, with several companies securing significant investments in recent times.

Habitto, Norbr, Tembo, and other fintech companies have been making headlines with their funding endeavors.

Infinant, a US banking technology start-up, landed $15m in Series A funding round, which will help the company expand its Interlace banking platform.

This platform is designed to integrate with banks' existing core systems, making it a game-changer in the industry.

Lumin Digital bagged $160m in growth equity, with the round led by Light Street Capital, NewView Capital, and Partners Group.

The digital banking industry is rapidly evolving, with several key trends emerging in recent years. Mobile banking adoption is on the rise, with 70% of online banking users accessing their accounts through mobile devices.

If this caught your attention, see: Internet and Mobile Banking

Digital payment methods are becoming increasingly popular, with contactless payments seeing a significant surge in usage. According to recent data, contactless transactions increased by 50% in the past year.

The shift towards digital banking is also driving the adoption of artificial intelligence (AI) and machine learning (ML) technologies to enhance customer experience and improve operational efficiency.

HSBC has completed its global reorganisation, marking a significant shift in the company's leadership structure.

The bank has announced numerous senior leadership appointments, including a new US CEO.

Lisa McGeough has been named as the new US CEO, a key position that will oversee the bank's operations in the United States.

HSBC's global reorganisation is a major development in the banking industry, and it will be interesting to see how it plays out in the coming months.

Mastercard is actively exploring emerging technologies for its future potential. One of the key areas they're focusing on is quantum computing.

Quantum computing has the potential to revolutionize the way Mastercard processes transactions and secures data. This technology is still in its early stages, but it's clear that Mastercard is taking a proactive approach to stay ahead of the curve.

By investing in quantum computing, Mastercard aims to improve the speed and efficiency of its operations. This could lead to faster transaction times and enhanced security measures for customers.

The Digital Operational Resilience Act (DORA) is here to stay, and it's changing the game for banking and finance. DORA redefines financial sector resilience, bringing challenges and opportunities for 2025.

Compliance with DORA requires a strong foundation, which means meeting, maintaining, and proving compliance. Learn how to do this with the arrival of DORA.

Penetration testing is a critical component of financial cybersecurity in 2025. It simulates real-world attacks to expose weaknesses and improve defences.