Growth and Confidence Projected in 2025 for Banks and Credit Unions

Financial institution leaders have listed challenges such as cybersecurity, talent shortages and digital transformation maturity as the key factors shaping strategies and priorities in 2025, according to Wipfli.

Two industry reports revealed that financial institutions are feeling bullish this year with 58% anticipating asset growth of 5% or more. In comparison, only 36% anticipated that level of growth last year.

Simultaneously, banks continue to diversify their services to ward off competitors, lure new customers and capture Gen-Z as they inherit new levels of wealth.

Banks displayed solid strategic priorities, like increasing investments in cybersecurity and growing traction for Banking-as-a-Service and embedded banking.

In addition, credit union leaders are gaining confidence and are projecting growth in the next 12 months as they wage a war to win and retain members.

Over half (XX%?) of surveyed credit unions are increasing their investments in cybersecurity, as 49% of credit unions experienced an increase in fraud in 2024, with 76% identifying unauthorized access to their networks or data in the past year.

Despite its strategic importance, only half of credit unions surveyed said they had reached a mature state of digital transformation in terms of digital customer experience and engagement.

Credit union leaders listed difficulties in integrating with existing systems and data/cybersecurity concerns as barriers to realizing digital maturity.

Many financial institutions also said that net interest margin compression, core deposit growth and the economy and regulatory environment could get in the way of continued growth and market share.