2025 will be a boom year for many sectors, but will private banking be one of them? What are the opportunities? Where are the risks? Private Banker International invited industry experts, including FusionIQ CEO Eric Noll, to share their insights into what a new year will bring to the banking industry.
2024 Year in Review: In 2024, significant strides were made in wealthtech solutions for retail banks: cloud-native platforms continued to reshape the financial services sector, delivering reduced operational costs and greater flexibility, enabling institutions such as banks and credit unions to better meet evolving consumer demands. These turnkey solutions allowed seamless onboarding of digital investment services and set the stage for holistic financial ecosystems. This year solidified the foundation for democratised, technology-driven wealth management, paving the way for broader adoption and deeper integration across platforms.
The past year also witnessed significant strides in integrated finance, with a growing focus on greater access to wealth management while enhancing customer experiences. Digital wallets emerged as transformative platforms, evolving beyond payments to include integrated wealth management tools, thereby broadening access to investment opportunities for a wider audience. By merging these functionalities, such platforms empower users to manage investments, savings, and financial growth seamlessly, expanding financial access once controlled by large institutions. Currently at an early stage, these tools are expected to reach more consumers: 65% of adults in the U.S. use a digital wallet at least once a month, with 53% using it more frequently than traditional payment methods.
2025 Forecast: Looking ahead, 2025 will be a transformative year for wealth democratisation. Accelerated by turnkey wealth-as-a-service platforms, more consumers will access sophisticated investment tools through financial institutions and digital wallets. Cloud-native technologies will continue driving this shift, offering scalability, flexibility, and enhanced customer experiences. Seamless integration will redefine wealth management’s reach, enabling financial institutions, including community banks and credit unions to adopt digital investment services. This reimagining of “share of wallet” will expand market reach and redefine consumer expectations around accessibility and convenience. Lower costs and enhanced accessibility will allow more users, including gig workers and those previously underserved by traditional banks, to invest and grow wealth.
