Retail Banking Sector Transforms with Digital Innovations, FinTech Partnerships for 2025

The retail banking sector is set for a significant transformation in 2025, driven by a focus on enhancing digital experiences, expanding partnerships with FinTechs, and leveraging data analytics, according to the 2025 Retail Banking Trends and Priorities report. Over half of financial institutions prioritize improving digital banking experiences, while collaboration with FinTechs is increasing, with 64% already in partnerships. However, a critical gap exists as only 25% of banks are upgrading legacy systems, risking their long-term agility. Simultaneously, banks face operational challenges due to siloed systems, which hinder their ability to provide personalized service and meet customer expectations. Research shows that 42% of banks still rely on manual compliance processes, widening the technology gap and posing risks to operational stability. To remain competitive, banks must unify their operations and invest in modernizing both customer-facing and back-office technologies.