AI to Unlock Financial Services’ True Potential in 2025, Experts Predict

The latest 11:FS Pulse Report—the fourth annual edition from the industry-leading benchmarking platform—highlights last year’s best user journeys in financial services and presents expert predictions for 2025, according to FF News.

According to experts at 11:FS, artificial intelligence (AI) is set to revolutionize financial services in multiple ways. The report forecasts:

• Hyper-Personalized Banking: AI-driven advancements will enhance customer support, refine product discovery, and create tailored user interfaces for a more individualized experience.
• Crypto’s Big Leap Forward: With pro-crypto regulations expected after Donald Trump’s re-election, traditional financial institutions may face fewer hurdles, leading to increased investments and strategic partnerships.
• Rising Threats from AI-Powered Scams: As AI and Generative AI (GenAI) continue to mature, financial fraud and scams will become more sophisticated. Banks must innovate rapidly, while fintechs—operating with tighter profit margins—will likely rely on partnerships for survival.
• Automation and Fraud Prevention: AI’s biggest impact will be beyond chatbots, streamlining compliance processes, automating workflows, and strengthening fraud detection mechanisms.

The report also celebrates ‘Pulse Stars’, companies that delivered outstanding user experiences across different financial services sectors. The winners include:

• Up (Australia): Making complex banking tasks enjoyable.
• Monzo (UK): Addressing fraud concerns.
• Niyo (India): Simplifying international travel.
• Thndr (Egypt): Easing onboarding for first-time investors.
• Public (US): Empowering investors with AI.
• Lunar (Denmark): Redefining AI’s role in banking.
• Lloyds Banking Group (UK): Leading in accessible design.
• Revolut Business (UK): Simplifying multi-account management.
• Exodus (US): Transforming crypto portfolio management.
• Apple (US): Elevating peer-to-peer (P2P) payments.
• Nubank (Brazil): Enabling cheaper payments via Pix integration.

The report introduces a new benchmarking tool analyzing the feature sets of top financial institutions, with five major takeaways:

1. Monzo and Revolut lead UK challengers by seamlessly blending functionality and intuitive design.
2. RBS and NatWest score well on features but lag in usability and visual appeal.
3. A rise in ‘dark UX’ tactics—design strategies that discourage users from seeking customer support.
4. Chase UK’s rapid ascent is due to a strong foundation in digital banking essentials, supported by a select few standout features.
5. Hero features from Monzo and Revolut push the boundaries of what modern banking apps can deliver.

Reflecting on the state of fintech, Joe Colchester, Head of Product at 11:FS Pulse, stated: “2024 was a transformative year for financial services. Many fintechs saw profitability become a reality, signaling a much-anticipated shift from growth to sustainable value creation. This evolution marks a maturing industry, with more fintechs going toe-to-toe with traditional banks. As we step into 2025, we do so with cautious optimism—aware of the bold advancements on the horizon, but equally mindful of the risks that accompany rapid transformation.”

With AI at the forefront of change, 2025 is set to be a pivotal year for financial services, where innovation, collaboration, and security challenges will shape the industry’s trajectory.