Trends to Watch in Banking and Fintech for 2025

As we approach 2025, the banking and fintech industries are poised for transformative changes driven by artificial intelligence (AI) and evolving regulatory landscapes, as highlighted in FinTech Magazine. In an exclusive interview with FinTech Magazine, Jason Osborne, Banking & Capital Markets Leader for North America at Genpact, shares his insights on what to expect in the coming year.

Osborne predicts a strategic pivot for banks and financial institutions, with two key areas taking center stage: risk management and customer experience. Rapidly changing regulations will compel banks to:

• Invest in AI for risk mitigation and business growth.
• Enhance data infrastructure, compliance automation, and talent acquisition.
• Break down internal silos to establish a customer-first mindset across all levels.

Osborne emphasizes the critical role of AI, stating, «Ultimately, AI is becoming a critical differentiator—whether it’s in managing complex regulatory changes or delighting customers with seamless experiences. Organizations that adapt quickly and embrace AI holistically will have the edge in 2025 and beyond.»

AI is set to revolutionize operational processes in financial institutions. Osborne highlights the growing expectations of consumers for instantaneous and effective customer support. He stresses that the goal is not to replace human agents but to enhance them with AI-driven tools like:

• Chatbots and virtual assistants for routine tasks.
• AI-powered insights to assist human agents in resolving complex and nuanced issues.

This hybrid model is expected to lead to faster resolutions, reduced costs, and increased customer satisfaction. A significant development in 2025 will be leveraging AI-powered predictive analytics to anticipate customer needs and deliver proactive solutions.

Osborne notes, «The future of customer support isn’t about replacing human agents with AI but enhancing them.»

To integrate AI successfully, Osborne suggests financial institutions:

1. Train teams across departments to understand and leverage AI tools.
2. Implement continuous learning mechanisms to refine AI algorithms using customer feedback.
3. Adopt transparent and ethical AI practices, building trust with customers.

Osborne also highlights AI’s role in regulatory compliance, especially in managing risk under frameworks like Basel III Endgame. AI will help synthesize various risk categories into unified views, enabling banks to forecast outcomes and adjust strategies preemptively.

“Banks that leverage AI for predictive risk simulations will gain a competitive advantage,” Osborne says.

As regulations evolve, banks are turning to AI to optimize risk models and enhance data integrity. Osborne outlines how machine learning can automate processes like fraud detection, stress testing, and risk reporting, freeing up human resources for strategic decisions.

He stresses the importance of upskilling teams, adding, “With the increased reliance on AI and data analytics, banks will need to invest heavily in upskilling their teams.”

Lastly, Osborne highlights the necessity of improving data visibility across organizations to avoid silos. Integrated, real-time analytics platforms will play a crucial role in ensuring all departments are aligned and aware of how their decisions impact the broader business.

As AI becomes integral to banking operations, institutions that embrace its potential—while prioritizing ethical practices and regulatory compliance—will emerge as industry leaders. With 2025 on the horizon, financial institutions must act decisively to prepare for these sweeping changes.