What can the lessons from 2024 teach us about banking in 2025?

With the continued growth of AI and other new technologies, and shifting customer attitudes, 2024 was another year of major change for banks. With this in mind, there is much to take on board from the past year.

From helping with debt, to better meeting expectations on sustainability and data protection, these are some of the key findings from our analysis of consumer sentiment towards financial providers in 2024, and what it tells us about the year ahead.

Taking more responsibility for debt

A clear generational divide has opened up when it comes to determining who should take responsibility for personal debt.

For example, our research found just half (51%) of 18–34-year-olds in the UK now believe that individuals should be personally liable for their debt, compared to nearly nine in ten (88%) of those aged over 55. Overall half (50%) of people in the UK believe banks should be responsible for preventing debt spirals.

With tough economic conditions likely to continue, more than ever, banks and lenders need to utilise innovations in areas like open banking and advanced analytics to lend responsibly and identify when customers may be falling into unmanageable debt.

Sustainability credentials are key

In addition to managing debt, consumers also now expect banks to be more sustainable, aligning with the more environmentally conscious choices people are now making in their day to day life.

Over half (54%) of both European and US consumers believe banks and other financial providers should offer more products and services that help them to make sustainable, more ethical financial decisions, rising to two-thirds (65%) of those aged 18-34 wanting their banks to offer greener services.

However, these efforts are not yet being replicated in how consumers are banking or managing their finances, with less than one in ten (8%) putting their money into environmentally responsible investments.

At present, too few financial providers are offering these services or alternatively, are failing to communicate their availability.

With more than one in ten (13%) 18–34-year-olds having swapped banks due to their environmental practices not aligning with their personal values, banks need to be more mindful of their sustainability offering if they want to retain customers.

Walking a fine line on sharing data

Consumers are also becoming increasingly concerned about their data. Considering fraud makes up 40% of crime in the UK, it’s unsurprising that so many are often reluctant to share their financial data.

Despite these beliefs, sharing data through secure systems like open banking can reduce fraud. Innovative technology, stringent ID verification and data encryption (to name a few) are making it increasingly difficult for fraudsters to impersonate customers.

Our research found that six in ten (64%) 18-34-year-olds would be open to sharing more data if it meant they were better safeguarded against fraud and a similar proportion (62%) would do so in return for help with their credit score and access to better services.

Increased clarity around the benefits of data sharing will be vital to overcoming customer scepticism, helping banks build trust with their consumers.

Digital customer services without losing the personal touch

Services across all aspects of people’s lives are becoming increasingly digital and instant, with our analysis showing this now informing expectations on banks, insurers and other financial providers.

Speed and ease have become an expectation when it comes to banking. For example, 14% of UK consumers now expect loan applications to be processed in just minutes, the highest in Europe.

The way customers in the UK prefer to engage with financial providers is also shifting faster than in other parts of Europe, with Brits now the least likely to prioritise human interactions in banking.

However, for many customers, direct interaction via phone or bank branch remains important. Banks therefore need to offer a wider range of tailored services, rapidly analysing and determining eligibility for products while requiring minimal customer input and ensuring staff are available to offer informed, direct and top-tier support should customers need it.

What to prioritise in 2025

Our research from the past year has shown that customers are looking for banks to help them enhance their lives. For some, this means better credit and debt support, for others this is greater access to greener financial products and for many it’s likely to be both.

Younger customers, for instance, are increasingly seeking fast, efficient banking and looking for new innovative services that could improve their financial wellbeing.  

Most importantly, financial service providers must ensure open communication with their customers, whether that be through showcasing their available online services, the benefits that sharing data can bring their customer or their focus on sustainable financial products and services.

Banks that fail to keep pace with evolving customer demand may risk losing their appeal in a competitive market. While it’s vital that banks and financial providers respond to these demands, they must also actively communicate this to their customers to ensure they get ahead in 2025.