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Top trends 2025: Retail banking

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Transform industry challenges into sustainable competitive advantage

As the retail banking industry transitions into 2025, new trends are completely redefining the landscape. Capgemini’s latest trends book identifies three core themes that will shape the future of retail banking:

  • Customer first focuses on enhancing customer experiences through omnichannel interactions and improved products and services.
  • Enterprise management details how organizations can streamline processes, increase agility, and reduce operational costs through technology implementation.
  • Intelligent industry covers the integration of modern solutions to build end-to-end digital experiences that transform the entire financial services value chain.

These themes reflect the retail banking industry’s response to evolving challenges and opportunities, positioning banks for a customer-centric, efficient, and innovative future. Our trends book provides a comprehensive overview of the top retail banking trends that will define the industry during the coming year and beyond, and offers insights into how banks can stay competitive, drive growth, and meet the rising demands of customers.

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Retail banking industry trends for 2025

Explore how the latest trends in retail banking are transforming the industry, setting new standards for efficiency, innovation, and customer value.

Omnichannel experience
Today’s customer journeys often include multiple channels and both digital and physical interactions. However, siloed operations can cause friction and hinder seamless customer experience. In 2025, one of the biggest retail banking industry trends will include a transition from siloed multichannel to end-to-end omnichannel customer interaction strategies – to improve CX and foster greater loyalty.
Financial literacy
As digital platforms become more widespread, consumers are often required to make financial decisions on their own, presenting a greater need for financial education from retail banks. By helping customers improve their financial literacy, retail banks can boost cross-selling opportunities and improve customer loyalty and confidence.
Next-gen banking
With secure, long-term customer growth in mind, banks are looking to engage with younger customers. In an effort to target the next generation, banks will prioritize the development of youth banking strategies and implementation of digital banking and education tools that resonate with new-age clientele.

Operational resilience
The Digital Operational Resilience Act (DORA) is pushing banks and critical third-party providers to implement robust IT security measures. Retail banks can avoid reputational damage and regulatory action as a consequence of non-compliance by prioritizing digital operational resilience.
RegTech for compliance
Retail banks face escalating risks of compliance costs and timelines, with global financial services firms expecting to spend more time on compliance in 2025. To combat this, banks will increase their investment in RegTech solutions that automate compliance and regulatory reporting – bolstering their competitive edge with enhanced resilience frameworks.
Deposit growth (H4)
The high cost of capital and declining deposit volumes are the top two concerns for retail bank executives as they enter 2025. Retail banks plan to combat this by focusing on new deposit acquisition and lowering funding costs through bundled product offerings and by targeting customer segments that have a higher preference for liquid cash.
Onboarding efficiency
Delayed onboarding procedures are frustrating retail bank customers, with average KYC processes taking up to three days to complete. One of the current trends in retail banking includes the adoption of digital identity tools that increase efficiencies and improve accuracies within the customer onboarding process.

AI for efficiency gains
The role of AI in retail banking has evolved from data-driven machine learning to content generation. In 2025, the technology will inch closer to agentic AI, where autonomous agents will help banks personalize services and automate operations – introducing new levels of productivity and efficiency.
ESG product strategy
Increased pressure from investors and regulatory changes are forcing retail banks to improve their ESG efforts, a trend that will continue in 2025 across the retail banking industry. Proactive implementation of ESG solutions will bolster bank reputations and foster deeper, trustworthy relationships with investors and customers.
Leveraging open finance
New open finance regulations are clearing the path for retail banks to develop a full view of the customer footprint. As real-time access to comprehensive financial data becomes more prevalent, banks will have the opportunity to seamlessly integrate customer information into a single platform – improving customer convenience, cross-selling opportunities, and better-informed lending decisions.

Conclusion

A shift in customer expectations, technological capability, and risk landscapes will all result in substantial impact on the retail banking industry in 2025.

  • At the core of this evolution is customer-centric innovation, where retail banks will rebuild customer and employee experiences and improve youth banking services to attract the next generation of clients.
  • Process efficiency will also be a major boardroom priority for banks in 2025, as organizations seek to leverage modern technology solutions to strengthen operational resilience and automate compliance procedures.
  • As AI and open finance become more widespread across retail banking, businesses will also look to strengthen their competitive edge with data-driven decision-making and innovative ESG product offerings.

Embracing these trends is crucial to defining the future of retail banking. The retail banks who prioritize them will enhance customer value, unlock new opportunities, future-proof their organizations, and emerge from 2025 as industry leaders.

Transform your bank with Capgemini’s expertise

Capgemini is a trusted partner for retail banks seeking to leverage advanced technology to stay competitive in today’s rapidly evolving market. Our comprehensive Generative AI for Customer Experience, Intelligent Process Automation capability, Connected Marketing engine, and Contact Center Transformation expertise empower banks to innovate CX faster, enhance operational efficiency, and improve cost savings. Through industry-leading digital transformation experience and expertise, we enable firms to access the full potential of AI, ensure regulatory compliance, and drive operational efficiency across all functions.

Unlock the full potential of your business through Capgemini’s digital transformation capabilities. Contact us today to discover how we can help you lead in the evolving retail banking landscape.

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Meet our experts

Gareth Wilson

Global Head of Banking and Capital Markets Practice 
With over 30 year of experience, Gareth is an expert with a proven track record of developing long term client relationships and the successful management of large scale, complex, business critical client engagements.

Carlos Salta

EVP, Head of Banking and Capital Markets Practice
Carlos comes with extensive experience and skills sets focused around transformation planning and management, solution definition and complex solution delivery disciplines. He has a strong background in digital led core modernization/replacement and has experience in driving transformations that span front end and back-end functions.

Jennifer Evans

Global Head of Retail Banking and Global Client Partner, Capgemini Invent
Jennifer Evans leads Retail Banking for Capgemini Invent. She comes with over 19 years of experience in leading complex transformation programs, experience designing and delivering a range of strategic solutions covering areas including cultural change, employee and customer advocacy, digital evolution, and operational efficiencies.

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    Frequently asked questions 

    1. How can retail ranks win as customers shift towards digital banking services?

    Retail banks can take advantage of the customer shift towards digital banking services by transitioning from a siloed multichannel approach to an end-to-end omnichannel customer interaction strategy. This shift allows banks to provide seamless and integrated experiences across various platforms, enhancing convenience and accessibility for customers. Additionally, offering digital financial literacy programs and personal finance apps can boost customer confidence in managing their finances, while engaging with younger customers through youth banking services helps build long-term relationships.

    2. What steps can retail banks take to keep up with the pace of regulatory changes?

    To keep up with the pace of regulatory changes, retail banks can adopt RegTech solutions for automated reporting and proactive regulatory compliance. These technologies enable banks to streamline compliance processes, ensuring they meet evolving regulations efficiently and effectively. Furthermore, increasing focus on digital operational resilience through technology partnerships can enhance banks’ ability to adapt to regulatory requirements while maintaining service continuity.

    3. How can retail banks leverage AI solutions for improved efficiency and customer experience?

    Retail banks can drive improved efficiency and customer experience by deploying AI solutions to automate routine tasks and enhance decision-making processes. For instance, AI can be used for data analysis to develop a 360-degree view of customers’ finances, which enables personalized savings and investment advice tailored to individual needs. Additionally, integrating AI-driven tools into customer service operations can enhance responsiveness and satisfaction by providing timely, relevant support, ultimately fostering stronger customer relationships.

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