The Year of Engagement: Key Trends for Banks and Credit Unions in 2025

With over 94 million consumers already sharing banking data and fraud threats escalating, banks and credit unions must balance innovation with security. The landscape is further complicated by consumers' growing preference for unified financial experiences, pushing institutions to consolidate services while building trust through transparency.

By Mark B. Egan

Published on January 27th, 2025 in Open Banking

As financial institutions step into 2025, they confront a marketplace primed for transformation, driven by new regulatory frameworks, evolving consumer expectations, and the rapid adoption of advanced technologies. For banks and credit unions that seize the moment, 2025 will be the year when data-driven personalization kicks into high gear, as they leverage new technologies to grow deposits and enhance customer engagement.

To be sure, these opportunities don’t come without some risk. The same forces invite more competition to the fray, armed with similar tools. Meanwhile, the consumer is demanding more, both in terms of security and the quality of their experience. But banks and credit unions — highly focused and well-embedded in their served communities — have a unique chance to capitalize on these advances, including in data intelligence, Open Banking, and artificial intelligence.

Previous research commissioned by MX from Forrester Consulting highlighted the rising importance of financial data intelligence, with 79% of North American data leaders identifying it as critical to their success. In this article, we’ll examine five trends that are poised to reshape the competitive landscape for banks in the U.S. and Canada — and offer five related resolutions for those ready to embrace what’s shaping up to be a pivotal year for customer engagement.

Open Banking Finds a Higher Peak

On the eve of 2025, more than 94 million consumer accounts were already sharing their banking data via the Financial Data Exchange API. That already strong growth seems certain to accelerate now that final rules from the U.S. Consumer Financial Protection Bureau and Canada’s new consumer-driven banking framework are established. Already, 41% of U.S. consumers have combined different financial accounts into one personalized view, MX reports.

Resolution: Make sure your Open Banking strategy doesn’t end up on the back burner — something that may be easier said than done in an environment where many financial institutions are prioritizing cost containment.

More financial institutions will join the Open Banking ecosystem, as early adopters seek to consolidate their competitive advantage, not least by evolving to offer even broader Open Finance solutions. banks and credit unions that are slow to enter will be vulnerable to losing business to providers that go all-in.

Fraud Demands Attention

Fraud and scams are rising rapidly, placing greater pressure on financial institutions to counter increasingly sophisticated threats. Alloy’s 2024 State of Fraud Benchmark report shows that 62% of banks, fintechs, and credit unions reported more fraud attempts in the past year.

Meanwhile, the Federal Trade Commission recorded over 290,000 cases of identity theft and 117,000 credit card fraud incidents in Q3 2024 alone. Adding to the concern, Deloitte’s Center for Financial Services predicts fraud losses in the U.S. could exceed $40 billion by 2027 due to advances in generative AI. To stay ahead, financial providers must integrate fraud prevention into every stage of the customer journey — from onboarding to daily transactions.

Consumer expectations for safety demand more than just advanced technology: Transparency and education are equally important. MX research shows that while 74% of consumers trust financial providers to protect them from fraud and other risks, more than a quarter have experienced fraud in the past two years.

Resolution: Focus on both modernizing processes and systems and improving customer education — delivering improved security while intentionally building trust in the eyes of your account-holders.

Banks that combine AI-driven solutions with proactive fraud awareness programs will build trust and strengthen long-term customer relationships.

Spring-Cleaning All Year Round

MX reports that the average consumer uses three or more finance-related apps, with over 10% of Millennials juggling six or more. Yet Chase’s Digital Banking Attitudes Survey shows 86% of consumers would prefer a single app for all banking needs, and MX data confirms that 57% would welcome an all-in-one solution for easier account management. That suggests the race for app primacy will heat up.

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MX forecasts that consumers will adopt a Marie Kondo approach to their apps, keeping only those that "spark joy" (aka help them better manage their finances) and deleting the rest from their home screen. This trend reflects a broader market shift, such as the 2024 closure of standalone platforms like Mint in favor of embedded wellness tools. The Financial Brand stresses that the quality of a bank’s mobile app can make or break customer loyalty. Increasingly, consumers are looking for comprehensive financial tools in a single app rather than managing multiple platforms for different services.

Resolution: To stay competitive, invest in richer, guided financial experiences that keep users engaged, offering more than basic app functionality.

Consumers want automated savings features, the ability to direct a portion of direct deposits to saving accounts, budgeting tools, goal-setting features, and spending indicators, among other things. FIs that meet this need can expect to win customer engagement and dollars in the long run.

Getting AI Right

AI will remain a key focus in financial services, with global spending on AI-related technologies expected to reach $337 billion in 2025, according to IDC. Despite growing adoption, a McKinsey survey reveals most organizations are still in the experimental phase, facing challenges in scaling AI effectively. In 2025, financial providers are likely to prioritize strengthening their data strategies, recognizing that high-quality, reliable data is essential for AI to deliver meaningful outcomes.

Resolution: In adopting AI solutions, banks must manage risks around data overload and growing consumer privacy concerns.

By investing in better data management and responsible AI use, financial institutions can enhance customer trust and drive the next wave of intelligent, automated financial services tailored to consumer expectations.

"Financial institutions need to take a step back and build the right data foundation that will both fuel AI use cases as well as protect their consumers," said James Dotter, Chief Business Officer at MX.

A solid data foundation will be crucial to unlocking AI’s full potential while mitigating risks. If that data is inaccurate, confusing, or outdated, financial institutions will be left making decisions, running operations, or serving customers based on bad information.

Rethinking Data Access

Most financial institutions know well the potential of the unbanked (5.6 million U.S. households) and underbanked (19 million), even if they haven’t always succeeded at bringing them into their served communities. In 2025, MX predicts a shift in perspective on this important challenge — specifically, the emerging problem of the "under-data’ed" consumer.

An "under-data’ed" consumer is someone who either lacks sufficient financial data or is unwilling to share their data with financial providers. This puts them at a disadvantage as financial institutions increasingly rely on data to offer personalized products, assess creditworthiness, and enhance financial services.

Resolution: Build relevant, personalized, and transparent experiences for consumers, reevaluating how you gain the trust of consumers and avoiding creating a new class of consumers without access to the best you have to offer.

Not surprisingly, behind this challenge lies an opportunity: MX research shows that 49% of consumers would actually share even more of their data with their bank or credit union if it improved their experience.

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"People want relevant, personalized and transparent experiences. It’s really clear when something is for you. It’s your data," said Jane Barratt, Chief Advocacy Officer and Head of Public Policy at MX. "It’s making sure that trust is being built by repeatable and personalized experiences. And, it goes back to data."

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