This report identifies key demand-side trends in the banking industry that can help enterprises fine-tune their digital strategies. It also provides an overview of enterprise challenges in the banking industry based on Avasant’s assessment.

Why read this Market Insights?

Banks are prioritizing cost reduction by adopting cloud-native infrastructure and composable architectures to modernize legacy systems and drive operational efficiency. Global capability centers (GCCs) are also helping banks access top talent while fostering innovation. To enhance customer engagement, banks are leveraging generative AI and advanced analytics to enable hyperpersonalized services. Additionally, banks are strengthening cybersecurity with AI-based threat detection and RegTech solutions for streamlined compliance. They are utilizing the “Sidecore” strategy to facilitate digital core upgrades without disrupting legacy systems. Digital wallets, crypto transactions, and digital currencies are expanding financial access, while ESG goals shape sustainable financial products and services.

The Banking Digital Services 2025 Market Insights™ aids enterprises in the banking sector in identifying important market trends and challenges for any digital project they participate in.

Methodology

The industry insights presented in this report are based on the following: our ongoing interactions with enterprise CXOs and other key executives; targeted discussions with service providers, subject matter experts, and Avasant Fellows; analyst insights from primary and secondary research; and lessons learned from consulting engagements.

Table of contents

About the report (Page 3)

Executive summary (Pages 4–7)

• • Defining the banking digital services scope
  • Key drivers and enterprise response
  • Avasant recognizes 28 top-tier providers supporting the banking industry in digital transformation

Demand-side trends (Pages 8–14)

• • Post-tariff tensions are driving banks to boost efficiency, cut costs, and scale 24/7 services to stay competitive.
  • Increasing demand for personalized experience is driving banks to reinvent customer engagement and service delivery.
  • Rising cyber threats, complex fraud tactics, and stringent regulations are pushing banks to strengthen security and comply with regulations.
  • Banks are focusing on mitigating the risks of overhauling legacy systems with more agile and low-risk solutions than complete core replacement.
  • Improving inclusive and real-time financial services using digital payment solutions and broadening access across geographies is a key focus for banks.
  • Growing investor demands and the need for compliance are compelling banks to incorporate ESG principles into their core operations.

Key contacts (Page 15)

Read the Research Byte based on this report. Please refer to Avasant’s Banking Digital Services 2025 RadarView™ for detailed insights on the service providers and supply-side trends.