What’s in the store for banking technology?
Vacuumlabs
Product development services with a focus on fintech - encompassing strategy, design, engineering, and data science.
The year 2025 is almost here, and we’re all curious to see what’s in store for banking technology.
Let’s dive in. ??
1. AI In The Back Office
In 2025, banks will routinely use AI to automate tasks like processing transactions, data entry, and fraud detection. The efficiency gains and reduction in human error will reduce operational costs, while advanced AI will be used to handle decision-making and real-time risk assessments.
2. Chatbots and AI Assistants in Customer Service
Chatbots are quickly becoming crucial in customer service. In 2025, we will see these bots evolve into agents capable of handling tasks requiring multiple actions, have complex problem-solving skills, and create a far more personalized customer experience.
3. Generative Financial Planning and Advice
Generative AI will handle more complex interactions and provide tailored financial advice by analyzing customer behavior and preferences. Acting as virtual financial advisors, these tools will help users make better decisions about their savings and investments.
?? Read all 10 Most Important Banking and Financial Technology Trends That Will Shape 2025 here.?
Merging Tradition and Innovation ??
In our last newsletter, we shared how Afin Bank is transforming financial services for the African diaspora in the UK, using innovative digital technology and an inclusive approach.
Today, we bring another perspective to the evolution of banking with the National Bank of Slovakia (NBS), one of the pillars of the Slovak economy, taking steps toward modernizing its core banking system.
Two Paths to the Future of Banking
?? Afin Bank Built from the ground up with inclusivity at its heart, Afin Bank leverages Thought Machine’s Vault to create a fully digital platform tailored to the specific needs of its customers. Offering services like savings accounts and tailored mortgage products, Afin Bank is a shining example of innovation addressing real-world gaps in financial accessibility.
?? National Bank of Slovakia NBS represents a traditional banking institution who is on the path to modernizing its core banking system. We’re happy to help them with this undertaking by preparing the research they will need to make the right choice. Our lead architect and a veteran tech lead will help them get clarity on the ecosystem of providers and integrators in the core banking field.
Why It Matters?
While these two banks are on different journeys, their goals align: creating systems that serve their customers better, whether through groundbreaking digital tools or modernized legacy systems.
Coming Soon: An insightful interview about a truly unique bank ??
In our upcoming interview, Jason Oakley, CEO of Afin Bank, shares how they’re building a bank to break down barriers and offer tailored products for Africans in the UK.
Keep an eye out for more updates! ??
?? The Latest in Fintech and Banking
?? Nubank thinks of moving its legal base to the UK
According to company officials, Nubank has been working with the British government on several plans, which were discussed as part of a broader set of agreements between Brazil and the UK.?
?? Apple Pay, PayPal, and Cash App face new bank-like rules
Digital payment providers handling over 50 million transactions annually will now fall under the supervision of the US Consumer Financial Protection Bureau. The new rule ensures digital payment providers follow the same laws as large banks and credit unions.
?? New stablecoin-powered liquidity management solution
Thunes collaborates with Circle to accelerate innovation in stablecoin liquidity management. The partnership lets Thunes’ network members use USDC to send money across borders in seconds, 24/7.
?? NatWest and Mastercard launch mobile virtual card solution for business
This innovation allows employees to make secure, on-the-go payments without needing a physical card, simplifying expense management for organizations. Mobile virtual cards are also useful for temporary workers, recruits, or unexpected supplier costs—eliminating the need for personal cards or cash for business purchases.
The UK lost more than ￡11.5 million last year due to online shopping scams, with Black Friday being a prime target.
What can we do about it?
As the shopping season begins, businesses are responsible for protecting their customers and their bottom lines. For example, Australia’s four major banks ANZ, CBA, NAB and Westpac are collaborating on a new anti-scam pilot project. With the BioCatch Trust system, banks can review the potential risks on a customer account and block payments, before any money is sent.
How do you educate your customers about secure payments? Let’s share it!?
FINTECH CONNECT: Brings together pioneers from the UK, Europe and beyond; shaping the future of how we ALL interact with financial services. Feel free to contact Nigel Sirett, our Digital Banking & Fintech Pro and sales director Marcus Davey, who will also attend. (December 4-5, London)
If you found this newsletter useful, feel free to share it, leave a comment, or get in touch! ??