Zhi-Ying Barry’s Post

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Digital Strategy | Digital Measurement | Digital Customer Experience Research & Insights | Competitive Intelligence

#Banks globally have seen record profits over the past two years, what will 2025 look like for the sector? And how should #financialservices firms respond to narrowing net interest margins? Check out some of the key takeaways from our #bankingpredictions2025 report! #digitalbanking #conversationalAI #payments #bankingproducts

View profile for Aurélie L'Hostis, graphic

Principal Analyst @ Forrester | Digital Strategy | Financial Technology

✨ Our 2025 banking predictions are live! In 2025, a double whammy of continued decline in customer experience quality and worsening profitability will hit banks. Banking executives must double down on product and service innovation. In 2025, we foresee that: 👉 Conversational banking will finally take off. 2025 will be a breakthrough year for conversational banking: Leaders will use AI capabilities to make their in-app bots smarter and more useful to customers. Features such as helping customers navigate the app, providing assistance, and offering personalized financial guidance will become more common. Banks will need to design their conversational assistants well, implement AI governance, and invest in rearchitecting their conversational AI systems to mitigate implementation risks. 👉 Deposit innovation will emerge, by way of “save now, pay later.” The adoption of “save now, pay later” (SNPL), also known as “save now, buy later,” has been growing in countries like India, offering customers an alternative way to earn returns on their savings. Its uptake in Western markets has been limited so far, however. We anticipate that Klarna’s new SNPL offering will inspire other companies with robust merchant ecosystems to introduce SNPL options in Western markets. With intense competition for customers’ savings, banks must innovate and explore new solutions to provide economic value. Failing to do so could lead to being left behind, as we’ve seen with the “buy now, pay later” trend. 👉 Real-time processing will become the norm but won’t drive innovation on its own. By 2025, real-time processing will be the default worldwide for financial transactions such as payments, funding, open banking, fraud assessment, and cross-border money movement, but its widespread adoption won’t immediately lead to innovative products and CX improvements. Financial institutions need to prioritize the development of value-added products and services on top of real-time infrastructure to meet customer expectations, gain a competitive edge, and shape the future of real-time processing. 📄 Read our full Predictions 2025: Banking report to get more detail about each of these predictions and read additional predictions. 🔗 (client access required): https://lnkd.in/dcA7zPPn 🎁 If you aren’t yet a client, you can download our complimentary Predictions guides, which cover more of our top predictions for 2025. Get additional complimentary resources, including webinars, on the Predictions 2025 hub. 🔗 https://lnkd.in/dDAaWf7w Set up a Forrester inquiry or guidance session to discuss these predictions or plan out your 2025 strategy. #financialservices #digitalbanking #banking #CX #innovation #forresterpredictions2025

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