Welcome to 2025, is this the Year to Rethink, Reimagine, and Reinvent banking?

Happy New Year, everyone! Can you believe it’s 2025 already? It feels like just yesterday we were stepping into 2024, full of plans, ideas, and the usual optimism that comes with a new year. Now, here we are, looking back at a whirlwind of a year and forward to what promises to be an even more exciting one for the banking industry, especially here in the Nordics.

Let’s start with a quick look back at some of the things I wrote about in 2024…

Last year, I wrote about, and we tackled on the Fintech Daydreaming Podcast some big questions. Questions like:

How can banks modernize their core systems without imploding?

What’s the real deal with embedded finance—hype or here to stay?

Can financial literacy become the industry’s next big focus?

And, of course, should I write a book about Ecosystem Enabled Banking?

We also covered topics like progressive modernization, compliance challenges, and the growing push for sustainability in banking. Through it all, one thing became crystal clear: the banking industry is in constant motion, and standing still isn’t an option.

2025: A Fresh Start, Big Opportunities

So, what’s on the horizon for 2025? I normally do not make predictions, but I have some thoughts on key trends and imperatives for the Nordic banking market.

Here are my thoughts for the year ahead:

1. Legacy Modernization Isn’t Just Important, It’s Critical

Let’s face it, legacy systems are the elephant in the room. Banks have been patching them up for years, but the cracks are starting to show. And in 2025, the pressure to modernize will only grow.

Modernization doesn’t have to be a giant leap of faith. A phased approach, starting small, proving value, and scaling gradually, can make all the difference.

Why it matters:

Legacy systems are holding banks back from being agile, customer-focused, and ready for the future. If there’s ever been a time to tackle this head-on, it’s now.

2. Embedded Finance Is Everywhere

Remember when embedded finance was just a buzzword? Those days are over. This year, we’ll see financial services popping up in places we never imagined, healthcare apps, e-commerce platforms, even community hubs.

Why it matters:

Banks need to stop thinking of themselves as standalone institutions and start embedding their services where customers already are. This isn’t just about convenience, it’s about staying relevant.

3. AI Goes Mainstream

Generative AI is no longer just the shiny new toy, it’s becoming a core part of how banks operate. From personalizing customer experiences to spotting fraud before it happens, AI is reshaping the industry.

Why it matters:

The challenge isn’t just adopting AI, it’s doing it responsibly. Customers need to trust that the AI their bank uses is ethical, unbiased, and designed with their best interests at heart.

4. Sustainability Isn’t a Trend—It’s a Business Model

The Nordics have always led the way on sustainability, and 2025 will be no different. But this year, ESG isn’t just about checking boxes, it’s about embedding sustainability into every aspect of how banks operate.

Why it matters:

Customers are watching, regulators are tightening the rules, and the market is rewarding those who walk the talk. Banks that prioritize sustainability will win in the long run.

5. The Digital Euro Is Coming

The digital euro is one of the most talked-about developments in European banking. While it might not roll out in the Nordics immediately, its ripple effects will be felt. The impact of this new regulation on the existing banking infrastructure and IT landscape is substantial, and will require detailed analysis.

Why it matters:

Banks need to get ahead of the curve, ensuring their systems are ready and their customers understand what’s coming. This isn’t just a technical shift, it’s also a trust shift.

6. Cybersecurity Takes Center Stage

As digital banking and instant engagement grows, so do the risks. Cyberattacks are becoming more sophisticated, and customers are more aware than ever of the need for security.

Why it matters:

Banks need to double down on cybersecurity, not just as a defensive measure but as a way to build trust and differentiate themselves in the market.

7. Financial Well-Being Becomes a Priority

With the cost of living rising and financial uncertainty growing, customers want more than just a place to park their money. They’re looking for guidance, tools, and support to manage their financial lives better.

Why it matters:

Banks that focus on financial well-being, whether through budgeting tools, education, or personalized advice, will strengthen customer relationships and loyalty.

A Personal Note: Why This All Matters

When I think about 2025, I can’t help but connect it to my own journey. Last year, I talked about whether I should write a book, a project that would turn my experiences in banking transformation into a story about innovation and resilience (with a kitchen renovation analogy thrown in for good measure).

That conversation, and the process of reflecting on it, made me realize how much growth comes from trying something new. Whether it’s starting a podcast (hello, Fintech Daydreaming!), experimenting with a new idea at work, or even painting a questionable galaxy at an art-and-wine night, it’s the willingness to explore that drives progress.

For banks, 2025 is that moment. It’s time to rethink old ways of working, embrace new technologies, and prioritize customer needs above all else. It’s not always easy, but as I’ve learned, it’s almost always worth it.

What Do You Think?

So, those are my thoughts for 2025. Now, I’d love to hear from you:

? Which trends resonate most with you?

? What challenges or opportunities do you see for the banking industry this year?

Let’s make this a year of bold moves and big conversations. Drop your thoughts in the comments or connect with me directly, I’d love to keep the dialogue going.

Here’s to a transformative 2025!