The banking industry is on the brink of a generational shift. As customer expectations evolve, digital technologies accelerate and global uncertainties persist, innovation has never been more critical.
Accenture’s Top 10 Banking Trends in 2025 and Beyond report highlights just how transformational the coming years will be. According to them, banks are entering a new era—one where success depends not just on modernizing legacy infrastructure, but on rethinking the very nature of banking. Generative AI is positioned to reinvent how banks interact with customers, design products and manage operations. Meanwhile, the gap between the scale of global banks and the speed of fintech disruptors is both a challenge and an opportunity for collaboration.
But innovation doesn’t happen in a vacuum. Bank CEOs are juggling a host of macroeconomic concerns—from persistent inflation and rising interest rates to increased regulatory pressure and shifting geopolitical dynamics. At the same time, they’re tasked with steering their institutions through complex technological transitions, addressing internal inefficiencies and identifying which emerging tools will deliver real impact in the near term.
To understand how banks are navigating this moment—what’s working and not—I spoke with partners from leading management consultancies who advise some of the top financial institutions. We explored the questions keeping bank CEOs up at night and the technologies generating the most excitement.
Video: Sid Khosla, Partner at EY, Americas Banking & Capital Markets Lead
Technology and Transformation: From Risk to Reward
Russell Sommers, Principal at Baker Tilly, emphasized that cybersecurity remains the top risk in financial services. “Bad actors are getting smarter,” he warned. As banks adopt new tools, hackers are simultaneously leveraging those same innovations to breach systems. Adding complexity is a shifting regulatory landscape, particularly with the potential for new policies from changing administrations.
Bhavi Mehta, global lead of AI in Financial Services at Bain & Company, echoed the concern over compliance but also saw opportunity in change. While deregulation may offer banks more flexibility, he noted the added scrutiny on fintechs. The shifting dynamics of regulation, therefore, create both challenges and chances for partnership.
All three experts underscored the significance of artificial intelligence. Sid Khosla, partner at EY, described AI as a “Darwinian journey” where banks must evolve or risk falling behind. “The key,” he said, “lies in combining proprietary banking data with public datasets to drive highly personalized, compliant and impactful product development.”
Sommers noted a wave of AI investment is helping banks convert massive volumes of internal data into usable insights. He cited real-time, AI-powered decision-support systems in lending and transaction monitoring as near-term wins. Mehta added that AI is already enhancing customer service, enabling advisors to access more complete client histories and generate faster, more tailored solutions.
Despite the promise of AI and emerging tech, banks are often weighed down by legacy infrastructure. Mehta described back-office systems as “semi-automated,” where impressive front-end apps mask outdated and error-prone processes. Sommers called this issue “tech debt,” where decades of accumulated platforms limit agility. Both experts stressed the need for banks to modernize tech stacks and align systems with strategic goals.
Video: Bhavi Mehta, Partner at Bain, Global Lead for AI in Financial Services
Culture, Collaboration and the Human Factor
Organizational inefficiency is not just technological. Mehta highlighted how business units stow data, impeding cross-functional collaboration. This lack of coordination slows innovation and inhibits the development of seamless customer experiences. Khosla suggested the most innovative banks foster cultures of experimentation and data-driven decision-making. “A clear strategic vision,” he said, “empowers banks to act with purpose and speed.”
Even with the best tools, people determine outcomes. Sommers argued that successful innovation depends on giving technology a true “seat at the table” alongside business strategy. He stressed the importance of involving IT, cybersecurity and data leaders from the outset.
Khosla added that the workforce model itself is evolving. Banks are reimagining organizational structures, often shifting from hierarchical pyramids to more agile, distributed models. They’re also increasingly hiring outside leaders with fintech experience to inject fresh thinking.
Each leader also emphasized the importance of staying plugged in to the fintech ecosystem. Mehta swears by conferences, LinkedIn and constant curiosity. Sommers relies on internal firm networks, meetups and watching which seasoned bankers join startups. Khosla taps into EY’s Entrepreneur of the Year program and co-hosted innovation labs.
Video: Russell Sommers, Principal at Baker Tilly, New York Financial Services Risk Advisory Practice Lead
Strategic Fintech Partnerships: Building the Third Culture
Fintech partnerships remain a vital avenue for innovation. But all three experts noted the challenges of collaboration between nimble startups and risk-averse banks.
“Unspoken expectations are premeditated resentments,” warned Sommers. Alignment on outcomes, compliance, and risk is critical from day one. Mehta agreed, stressing the need for fintechs to be proactive in meeting banks’ third-party compliance standards, lest they get stuck in sandbox limbo.
Khosla described effective partnerships as a “third culture,” blending fintech agility with institutional rigor. He sees partnership as the new M&A, allowing banks to integrate innovation without the overhead of full acquisitions.
So, where should banks focus their innovation bets?
- AI-powered augmentation: From customer service chatbots to enhanced wealth management tools, augmenting human decision-making is delivering early returns.
- Real-time payments: Mehta emphasized the importance of catching up to Asia on instant settlement. Faster insurance payouts and embedded finance opportunities await.
- Open banking: Still nascent in the U.S., API-driven models promise to give customers more control over their data, with banks benefiting from new service models.
- Consolidation: Khosla noted that 4,300 U.S. banks may be 3,000 too many. Consolidation could help institutions share tech costs and scale innovation.
Looking Ahead
The future of banking won’t be defined solely by technology, but by how institutions organize, partner and execute. Legacy systems and silos may persist, but the banks that lead will be those that prioritize cross-functional collaboration, customer-first thinking and agile innovation cultures. As Khosla puts it, “Clarity of vision is everything. Once you know the North Star, you can operate in a different way.”
In an era where AI is the catalyst and cybersecurity is the constraint, the question for banks is not whether to change, but how boldly they choose to do so.
For more on Forbes, check out: AI’s Growing Role In Financial Security And Fraud Prevention or Risk-Based Authentication: The Future Of Secure Digital Access.