IDC FutureScape: Worldwide Retail Banking 2025 Predictions

IDC FutureScape Figure

• Figure: IDC FutureScape: Worldwide Retail Banking 2025 Top 10 Predictions

Executive Summary

IDC FutureScape Predictions

• Summary of External Drivers

• Predictions: Impact on Technology Buyers

• Prediction 1: By 2026, GenAI Features Will Drive a 40% Increase in Client Retention Among Hybrid Wealth Advisory Providers as Personalized Insights and Tailored Recommendations Better Meet Client Needs

• Associated Drivers

• IT Impact

• Business Impact

• Guidance

• Prediction 2: By 2026, 25% of Digital Wealth Advisory Platforms Will Derive 50%+ of Revenue from Subscription Fee Models Fueled by Advanced Analytics and Digital Engagement Tools Offering Value Independent of AUM

• Associated Drivers

• IT Impact

• Business Impact

• Guidance

• Prediction 3: Synthetic Loan Applications Will Grow 100% by 2027, Resulting from the Availability of GenAI and Personal Data on the Dark Web

• Associated Drivers

• IT Impact

• Business Impact

• Guidance

• Prediction 4: By 2027, 70% of Tier 1 Global Banks Will Have Set Up a Dedicated Compliance Function with a Holistic Approach in Response to the Ever-Stringent Responsible AI Regulations

• Associated Drivers

• IT Impact

• Business Impact

• Guidance

• Prediction 5: Bank Data Aggregation Platforms, Leveraging Open Banking and Open Banking-Style APIs, Will Capture 10% of Online Consumer-to-Business Payments Globally by 2027

• Associated Drivers

• IT Impact

• Business Impact

• Guidance

• Prediction 6: By 2028, 30% of New Bank Payment System Deployments Will Include the Ability to Process Payments Across Card, Interbank, and Cross-Border Rails from a Single Platform

• Associated Drivers

• IT Impact

• Business Impact

• Guidance

• Prediction 7: By 2028, 35% of Financial Institutions Will Recast GenAI-Powered Integrations to the Mid-, Back-, and Front-Office Systems and Operations as CX Programs to Prevent Revenue Erosion and Improve Loyalty

• Associated Drivers

• IT Impact

• Business Impact

• Guidance

• Prediction 8: By 2029, 75% of Global Tier 1 Banking Institutions Will Have Modernized or Upgraded Their Product Development, Pricing, and Management Platforms to Enable New Product Innovation

• Associated Drivers

• IT Impact

• Business Impact

• Guidance

• Prediction 9: 25% of Financial Institutions Will Have AI/ML and GenAI Embedded in Finance, ERP, and Planning Software to Improve Automation and Efficiency of Planning and Finance Staff by 2029

• Associated Drivers

• IT Impact

• Business Impact

• Guidance

• Prediction 10: By 2026, 60% of Banks Worldwide Will Use RegTech Embedded with GenAI to Support Banks' Day-to-Day Risk Management or Regulatory Compliance Processes, Thus Streamlining Workflows and Reporting Generation

• Associated Drivers

• IT Impact

• Business Impact

• Guidance

Advice for Technology Buyers

External Drivers: Detail

• AI-Driven Business Models — Moving from AI Experimentation to Monetization

• The Drive to Automate — Toward a Data-Driven Future

• AI-Driven Workplace Transformation — Building Tomorrow's Workforce Today

• Regulatory Flux — Navigating Compliance Challenges in a Shifting Policy Landscape

• Responsible and Human-Centric Technology — Ethics in the Enterprise

• Battling Against Technical Debt — Overcoming Hurdles to IT Modernization

• Customer Experience Squared — Consumer and Citizen Expectations for Digital Services

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• Related Research