91探花

Cost savings matter most to UK business leaders when choosing a bank account. A survey conducted by NerdWallet found that 43% prefer accounts with no monthly fees, reflecting the importance of affordability. Another 34% prioritised free basic UK transactions, reinforcing this financial consideration.

Technology is an important aspect in banking decisions. One in three business owners prioritised easy-to-use apps, while 37% found online access more valuable than branch visits, which only 20% of respondents viewed as important. These preferences indicate that businesses increasingly rely on digital solutions.

Customer service also remains relevant, with 31% of respondents seeking quick access to advisers. This shows that while technology dominates, personalised assistance still holds value in decision-making.

 

Are Younger Generations Changing Business Banking?

 

Younger business owners are leading the way toward online banking. NerdWallet鈥檚 survey revealed that 53% of respondents aged 18 to 44 opened online-only accounts in the past year, compared to just 30% of those over 45. Younger users are also more comfortable with fully digital processes, as only 8% required in-person interaction, compared to 28% of older participants.

Trust in banking varies across age groups. While 32% of all respondents said they trust high street banks more, younger users were nearly as likely to trust online providers. Among those over 45, trust in traditional banks was much stronger, with only 6% favouring online options.

These differences suggest that generational preferences may shape how banking services evolve, with younger business owners driving demand for more innovative solutions.

 

Could High Street Banks Be Losing Their Appeal?

 

Traditional banks could see some problems as younger customers lean toward digital options. While 6% of respondents over 45 trusted online banks, younger users placed less emphasis on branch-based services, favouring apps and online platforms.

This trend pressures high street banks to modernise their offerings. Without improving their digital services, they risk losing customers to online-only providers like Monzo and Starling.

Also, many traditional banks still charge fees for business accounts, which could deter 43% of businesses that prioritise free accounts. To stay competitive, these institutions may need to reconsider their approach to both pricing and technology.

 

What鈥檚 Changing in Business Banking?

 

Businesses want low-cost, digital-first banking, and this demand continues to grow. NerdWallet鈥檚 findings show that almost half of respondents opened online accounts in the past year. Businesses are looking for banking options that are affordable and convenient.

 

Experts Predict Business Banking In 2025

 

These insights are what experts believe will be seen in business banking next year…

 

Our Experts:

 

• Mike Upchurch, VP of Strategy for Financial Services and Insurance, Domino Data Lab
• Scott Dawson, CEO, DECTA
• Hannah Fitzsimons, CEO, Cashflows
• Robert Kraal, Co-founder, Silverflow
• Barry O’Sullivan, Head of Banking and Payment Infrastructure, OpenPayd
• Krishna Subramanyan, CEO, Bruc Bond
• Chris Davis, Managing Director Ireland, Kyndryl
• Peter Ku, VP & Chief Industry Strategist, Informatica
• Yanki Onen, CEO and Founder, wamo
• Richard Rosenberg, Chief Product and Technology Officer, Spendesk

 

Mike Upchurch, VP of Strategy for Financial Services and Insurance, Domino Data Lab

 

 

“Banks and insurance companies will vastly improve the extraction of value from unstructured data

“In 2025, well-tuned LLMs will help someone like a commercial bank credit risk manager answer a question like “How many commercial real estate loans have foreign investor exposure from unstable regions?” in seconds. Previously, analysing hundreds of pages of contracts manually would take weeks.

“More than 80% of banking and insurance data is unstructured. Traditionally, these industries extracted limited features from this data, storing them in structured formats for modelling. This approach was constrained by the limitations of pre-LLM technologies, leading to rule-based, rigid classifications.

“LLMs have revolutionised this landscape, enabling context-aware, domain-specific, and highly accurate classifications and extractions. Tasks like named entity recognition and summarisation, once limited, are now powerful.

“Banks are facing profitability pressures and will increasingly adopt AI for process optimisation

“Banks face mounting profitability pressures driven by rising borrowing costs, compliance demands, digital transformation expenses, narrowing net interest margins, and competition from fintechs. To counter these challenges, banks will increasingly leverage AI in 2025 to automate repetitive tasks across compliance, customer service, HR, finance, and risk management.

“These solutions will streamline decision-making, optimise resources, and accelerate workflows, delivering significant cost savings while fostering innovation. However, the rapid adoption of AI will bring increased regulatory scrutiny and operational complexity.

“Banks with mature model development and governance platforms, cloud-first infrastructures, and well-organised data will gain a decisive advantage, pulling further ahead of competitors still struggling to modernise. As regulatory frameworks evolve and MLOps maturity becomes a competitive necessity, early AI adopters will lead the industry’s transformation, capturing efficiencies and driving sustainable growth by year end.”

 

Scott Dawson, CEO, DECTA

 

 

“Another year, another prediction about open banking. While open banking has been on the forefront of fintech conversation since 2018, I don鈥檛 think that it鈥檚 controversial to say that it hasn鈥檛 been as successful as its creators would have hoped.

“Many people either haven鈥檛 heard the term or have negative perceptions of it (鈥業鈥檓 not going to open my bank account up to just anyone!鈥�), but more importantly many people are using it without even knowing. A full half of open banking users shows that Open Banking is in fact quite popular 鈥� so long as you don鈥檛 call it Open Banking.

“It seems that while there is an appetite for the things that open banking can do, there is little appetite for the term itself. It might even be dissuading potential users from engaging in what should be a vibrant ecosystem of services. People don鈥檛 need another technology in their lives; they need solutions to real problems, and it seems that many are using open nanking as just that.

“What does this mean for the FinTech industry? It means that the general public don鈥檛 always get excited about the things we get excited about, and that鈥檚 okay. They don鈥檛 need to know that the app they use to apply for credit or manage their finances is part of a larger ecosystem of services created by the Payment Services Directive 2 regulatory framework, and we as an industry don鈥檛 need to spend time and funds promoting open banking as a concept, or even talking about it, when they can be promoting the individual services that open banking enables.”

PSD3 is coming

“Open Banking came out of PSD2, the result of an attempt to level the playing field between payment service providers by giving them access to account information. There is still plenty for the payment service regulators to do, especially when it comes to combatting fraud and expanding the capabilities of Open Banking, and PSD3 is going to arrive in 2026.

“With the final version of PSD3 expected by the end of 2024 or at most early 2025 we will have a more concrete vision of what to expect, but the core concepts are already being discussed. n a compliance sense, regulations and directives have key differences: a directive sets out a goal for EU member states to achieve whereas a regulation is binding.

“The UK agreed to be part of the original PSD1 and PSD2, but is under no obligation to adopt PSD3 鈥� it鈥檚 likely that it will do so just to keep things simple when doing business in Europe at a time when Brexit has over-complicated it, but we don鈥檛 know if the UK will accept all, some or none of the directives.

“It is likely that PSD3 will be a continuation of PSD2 instead of a set of entirely new ideas, as PSD2 had been. There will likely be further streamlining of authentication for Open Banking, extended IBAN checks that will make credit transfers safer and a clearer framework for e-money. Ideally, fraud countermeasures will do something about APP fraud, which is a major cause of fraud in the UK and across Europe, but this may not fall into the remit of the directive.”

 

Hannah Fitzsimons, CEO, Cashflows

 

 

鈥�2024 was declared the 鈥榊ear of the SME鈥�, but there has been little relief for the UK鈥檚 small businesses after years of economic headwinds. With the Autumn Statement now behind us, there is increased pressure for SMEs heading into a new year, and little change expected on the macroeconomic scale 鈥� energy and fuel prices aren鈥檛 about to significantly reduce any time soon.

“What鈥檚 more, the US is rumoured to be imposing tariffs on foreign imports that could see the UK-based businesses who export to the country, 84% of which are SMEs, unable to do business there.鈥�

鈥淗owever, while we can鈥檛 predict the economic outlook, and with every tough period comes prosperity, we have our key role to play in helping our nation鈥檚 SMEs evolve and grow. With that said, I believe this year we鈥檒l see even greater appetite for better, more reliable sources of funding.

“Having to wait to be paid for work that your company has done or products that you have delivered is something that affects entire supply chains, making every company down the line have to pay their suppliers later.

“So I see a greater need for responsible, business financing solutions that allow businesses to secure funding almost instantly by being pre-qualified. If 2025 is set to be another year of low growth then these services will be invaluable.鈥�
 

 

Robert Kraal, Co-founder, Silverflow

 

 

鈥淭he payments industry is standing at a pivotal crossroads. In 2024, the European Payments Acquiring market processed over $6 trillion in transaction value鈥攁 staggering 13% year-on-year growth. Yet this remarkable expansion reveals a stark divide: while newer players are thriving with modern, cloud-native systems, many traditional providers are falling behind, shackled by outdated, legacy infrastructures.鈥�

鈥淭hese legacy systems, once adequate for domestic, cash-and-card transactions, now act as barriers in a world where global, real-time, and digital-first transactions are the norm. Merchants and consumers demand faster approvals, seamless cross-border payments, and flexible integrations鈥攆eatures that legacy infrastructures simply cannot deliver without a spiders-web of patches and work-arounds.鈥�

鈥淩ather than patching outdated systems, the focus must shift to building entirely new, cloud-native infrastructures. These systems offer the scalability, speed, and adaptability necessary for real-time processing and the flexibility to integrate with emerging payment methods. For providers willing to embrace this transition, the rewards are clear: faster product launches, smoother operations, and a stronger ability to meet the expectations of tomorrow鈥檚 merchants and consumers.鈥�

鈥�2025 must be the year when we stop letting legacy system hold us back. This isn鈥檛 just a technological transformation鈥攊t鈥檚 a mindset shift. By prioritizing modern infrastructure, the industry can unlock the true potential of payments innovation, ensuring no business is held back by the constraints of yesterday. I predict that those who act now will define the future of payments; those who hesitate risk being left behind.鈥�

 

Barry O’Sullivan, Head of Banking and Payment Infrastructure, OpenPayd

 

 

“Open Banking will continue to grow as the market matures with businesses and merchants being key to growth here. Yet there still needs to be more education on the end user as they will ultimately be the ones that decide the adoption. This for me is down to the merchants, business etc to drive this education and even offer incentives for customers.

“There is a nervousness for an individual to have another app open their banking app and many get scared off by the process and choose another payment method. Education around safety and security is paramount for success.”

 

Krishna Subramanyan, CEO, Bruc Bond

 

 

鈥淎 key trend emerging in the corporate banking industry is the shift towards embedded compliance. This approach integrates compliance directly into workflows, transforming it from an isolated task into a core part of everyday operations. For corporate banking and cross-border payments, this innovation promises a smooth, uninterrupted experience鈥攎uch like the seamless and invisible security checks built into mobile banking.

“By integrating compliance capabilities into everyday banking platforms, financial institutions can deliver automated, multi-jurisdictional checks in real-time. This not only significantly reduces operational costs, but also bolsters anti-fraud measures by improving precision and efficiency.

“As this gains momentum, fintechs with embedded compliance solutions will be equipped to navigate the evolving regulatory landscape and set new industry benchmarks.鈥�

 

Chris Davis, Managing Director Ireland, Kyndryl

 

 

鈥淚n the coming year, enterprises that have relied on multiple payment systems acquired over time will focus on payment application rationalisation and simplification to promote integration, reduce costs, and improve the overall user experience. Additionally, the sector will see more acquisitions and consolidations of independent payment apps to drive innovation and efficiencies.鈥�

鈥淭he most innovative companies will expand their focus on low-code and no-code development, particularly in serverless applications, to accelerate their digital transformations. Adopting low-code platforms can help firms manage complex hybrid computing environments as they automate workflows to reduce errors and boost productivity and build the customised solutions that deliver the personalised experiences that today鈥檚 customers demand. These platforms can be used to support digital banking, risk assessment, loan products and more 鈥� all ultimately moving financial firms into the future.鈥�

 

Peter Ku, VP & Chief Industry Strategist, Informatica

 

 

鈥淢any banks seem convinced of the potential of AI, but they struggle with how best to scale, make it productive, and fit within existing budgets. At the same time, many institutions are grappling with 鈥渃hange fatigue.鈥�

“They know they should modernise their technology and data infrastructure more quickly and invest more.鈥疊ut deploying AI more widely and successfully will not happen unless leaders more firmly address how, and to what extent, their banks continue to rely on disjointed and antiquated legacy technology infrastructure, contributing to technical debt.

“While many banks have been slowly but surely chipping away at their tech debt, it has been an albatross around bank leaders鈥� necks for at least three decades. While many banks are already well along the digital transformation journey, it may not be happening at the pace they would like.鈥�

Regulation

鈥淲ith stricter capital requirements, ongoing and increasing concerns on commercial loan defaults, as well as ESG regulations, financial institutions will need modern data management, data catalog, data governance, and data quality solutions that provide 鈥渧alid鈥�, refined, fully governed and contextualised data assets that are trustworthy and fit-for-business use, to manage risks and comply with industry regulations and avoid unwanted audits and fines.鈥�

AI Upskilling

鈥淭his is the time for the financial services industry to modernise how they manage and govern data with solutions that also leverage gen AI and machine learning to scale and automate complex data management and data governance tasks.鈥疞egacy infrastructure and outdated tools, accompanied by widespread, fragmented, siloed data, hinder users from accessing and harnessing trusted insights.

“Developing AI and data skills across the organisation, supported by metadata-driven intelligence, will ensure responsible data use as trusted data is democratised across the organisation for faster, successful outcomes.鈥�

 

Yanki Onen, CEO and Founder, wamo

 

 

SMEs must build ecosystems of support to fuel growth in new markets

鈥淔or the approximately 25.8 million SMEs across Europe, 2025 will signal a bid for growth as they look to tap into new markets, particularly as business confidence in certain home territories proves low. But those taking the plunge and looking to do so must account for the challenges that come with cross-border trade.

鈥淥ne of these is the need to navigate multiple currencies. This can be tricky for SMEs whose expertise understandably may not lie in knowing the intricacies of this, from the most effective processes to risks and the associated regulatory red tape. This is why in 2025, it will be critical for SMEs to build an ecosystem of support partners that can take away the worry, so they can focus on their core: running their business.

鈥淭he ability to make and receive payments in local currencies will be fundamental to the success of market expansion and having a support team on hand – ideally one with human expertise, not just an automated chatbot – that can be accessed from anywhere will be key to removing growing pains.鈥�

 

Richard Rosenberg, Chief Product and Technology Officer, Spendesk

 

 

鈥淎s we advance into 2025, the finance industry will move closer toward open finance, propelled by new regulations like the Payment Services Directive 3 (PSD3) in Europe and the CFPB鈥檚 Section 1033 in the U.S. These regulations aim to foster innovation by reducing regulatory barriers and making entry to the market more accessible for fintech startups.

鈥淥pen Banking itself is expected to grow exponentially and reach over $40 billion in 2026. With this growth, I predict there will be an uptick in financial institutions sharing data, with consumer consent, to create more customer-centric services that reshape the traditional banking experience. This trend is predicted to drive a significant rise in global payment transactions, with Open Banking transactions forecasted to reach $116 billion by 2026, a massive increase from 2021.

鈥淗owever, while Open Banking can foster innovation and improve customer experience, it also increases competition and presents risks regarding data security and potential misuse. As the global financial landscape becomes increasingly interconnected, opening up the space to potential security breaches and exploitation of customer information, the new year will need to prioritise addressing these complexities.鈥�