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Financial Services in 2025 survey data

Explore our survey findings

All Sectors
Questions and Answers Global Asia Pac EMEA Americas
Regulatory Impact Thinking about the different areas that could potentially be impacted by regulatory changes over the next 5 years, which areas of regulation are you most concerned about?

Data shown:

  • Percentage of respondents who included each answer in their top 3

AML (Anti Money Laundering) 24% 23% 22% 27%
Use of new technology 30% 33% 23% 32%
Enhanced accountability 23% 27% 21% 19%
Open Banking 22% 23% 22% 22%
Central Bank Digital Currency (CBDC) 27% 33% 25% 21%
Data privacy and cybersecurity 48% 40% 50% 57%
Environment and climate (e.g. ESG) 28% 36% 26% 20%
Customer communication 25% 28% 19% 26%
Digital identity authentication 31% 34% 26% 31%
E-money/Cryptocurrency 27% 28% 25% 26%
KYC (Know Your Customer) 28% 31% 26% 27%
Local regulatory pressures - different regulations in different regions 30% 35% 28% 26%
New business model (crowdfunding, peer-to-peer lending) 26% 35% 22% 18%
Other (please specify) 0% 0% 0% 1%
Don't know 2% 1% 3% 2%
Cybersecurity Strategy Which of the following factors will have the greatest impact in shaping your cybersecurity strategy over the next 5 years?

Data shown:

  • Percentage of respondents who included each answer in their top 3

Shortage of cybersecurity talent 35% 37% 36% 32%
Introduction of new authentication technologies, such as biometrics 30% 33% 25% 29%
Increasing complexity of cyber threats 45% 42% 42% 51%
Introduction of fifth-generation (5G) cellular networks 29% 38% 23% 24%
Adoption of Internet of Things (IoT) hardware and software 30% 40% 20% 26%
Growing public concern over data privacy 35% 34% 36% 36%
Cybersecurity and data privacy regulations 46% 46% 47% 46%
Vulnerabilities in supply chains and business partners 28% 26% 25% 33%
Rising geopolitical tensions 28% 30% 27% 28%
Human vulnerabilities (unintentional or malicious) 32% 29% 33% 35%
Other (please specify) 0% 0% 0% 0%
Don't know 2% 2% 3% 2%
M&A, Divestitures or Carve-out Is your organisation likely to consider any Merger & Acquisition (M&A), Divestitures or Carve-out activity in the next 5 years?

Data shown:

  • Percentage of respondents who included each answer in their top 3

Yes - expect 1 or 2 M&A/Divestitures/Carve-out activities 25% 22% 23% 29%
Yes - expect 3 to 5 M&A/Divestitures/Carve-out activities 32% 40% 31% 24%
Yes - expect more than 5 M&A/Divestitures/Carve-out activities 13% 13% 11% 13%
No - we don't plan to consider any M&A/Divestitures/Carve-out activities expected within next 5 years 18% 15% 23% 18%
No - but we expect to be the target of an M&A/ ivestiture/Carve-out activity expected within next 5 years 4% 5% 4% 4%
Don't know 8% 5% 8% 11%
ESG Influence To what extent do you expect ESG (Environmental, Social and Corporate Governance) to influence the following aspects of your organisation's business model?

Data shown:

  • No influence
  • Moderate influence
  • Significant influence
  • Don't know
separated by commas in each table cell.

Selection of clients 21%,43%,34%,3% 13%,47%,38%,3% 20%,42%,35%,3% 30%,38%,29%,3%
Selection of suppliers (value chain partners) 17%,46%,34%,3% 13%,45%,40%,2% 17%,49%,31%,3% 21%,44%,31%,4%
Products/service offering 13%,45%,39%,3% 10%,48%,40%,2% 11%,44%,41%,4% 18%,44%,36%,2%
Investment decisions 14%,41%,41%,3% 13%,40%,46%,2% 13%,41%,42%,4% 17%,43%,36%,4%
Lending decisions 19%,43%,35%,4% 18%,44%,33%,4% 13%,41%,42%,4% 24%,38%,33%,5%
Recruitment of employees 22%,43%,33%,3% 17%,50%,32%,1% 24%,37%,35%,4% 26%,38%,32%,4%
Overall organisation's strategy 12%,43%,42%,3% 10%,44%,44%,2% 14%,40%,41%,5% 14%,44%,39%,3%
The role of employees in Financial Services The role of employees in Financial Services organisations is changing. Which of the following activities is your organisation planning to pursue over the next 5 years to address a potential future skills gap?

Data shown:

  • Percentage of respondents who included each answer in their top 3

Change the composition of the workforce between permanent and contingent staff 35% 40% 33% 31%
Hire from competitors 30% 28% 33% 30%
Acquire a firm to access new skills/expertise 34% 43% 26% 29%
Establish a strong pipeline direct from education 40% 45% 30% 43%
Hire from outside the industry 29% 31% 28% 28%
Undertake significant retraining/upskilling 47% 47% 44% 49%
Outsource non-core activities to third parties 36% 41% 29% 36%
Other (please specify) 0% 0% 0% 0%
Don't know 4% 3% 6% 4%
Macro trends in FS Thinking about macro trends in the financial services industry, which of the statements below do you think is most likely to be true in the 2025?

Data shown for Trend 1:

  • Continued low interest rates will require that institutions increase investment in measures to reduce costs, digitise and improve productivity to maintain margins and profitability.
  • An eventual increase in interest rates in 2023 will help institutions improve margins and profitability.
  • No change.

Data shown for Trend 2:

  • Asset impairments resulting from the pandemic will further constrain lending and the risk-bearing capacity of regulated banks and insurers, increasing the share delivered by capital markets and the so-called shadow banking or alternative financing industry (such as PE funds and sovereigns) over today's levels.
  • After the pandemic subsides, alternative financing will return to today's levels or below.
  • No change.

Data shown for Trend 3:

  • Alternative providers of capital will increase in importance, forcing financial institutions to adjust their business models to a less pronounced role in providing capital (with a corresponding P&L impact) and find new ways to participate in the value ch
  • Policymakers will have not made the much needed regulatory, tax and legal changes to enable alternative financing to flourish, limiting its influence.
  • No change.

Data shown for Trend 4:

  • Regulatory initiatives that had been planned or temporarily postponed during the pandemic will be implemented in short order.
  • Regulatory initiatives that had been planned or temporarily postponed during the pandemic will be further delayed.
  • No change.

Data shown for Trend 5:

  • De-globalisation of financial institutions will continue as will offshoring and nearshoring.
  • Increased regionalisation of institutions and onshoring of operational activities will be driven by increased digitization and risk aversion.
  • No change.

Data shown for Trend 6:

  • Leading institutions will further digitise their customer interaction models, strengthen digital sales and service model interaction, and materially cut back on support functions and infrastructure that failed to prove their value during the pandemic.
  • Leading institutions will revive some of their 'brick and mortar' operations that closed during the pandemic.
  • No change.

Data shown for Trend 7:

  • Big tech companies will continue to push into arenas formerly exclusively owned by incumbent FS firms (such as payments and credit, lending, and trading).
  • Financial services incumbents will be able to fend off the big tech companies by increasing client satisfaction and trust with a wider and evolving set of products and services.
  • No change.

Trend 1: Interest rates 62%,30%,7% 68%,26%,6% 57%,34%,9% 60%,33%,7%
Trend 2: Alternative finance 53%,38%,9% 62%,31%,8% 46%,43%,11% 46%,43%,11%
Trend 3: Sources of capital 56%,32%,12% 65%,26%,9% 49%,36%,15% 50%,38%,13%
Trend 4: Regulatory initiatives 47%,41%,12% 48%,44%,7% 46%,35%,18% 46%,41%,13%
Trend 5: Globalisation 34%,48%,17% 40%,52%,8% 29%,43%,28% 32%,48%,20%
Trend 6: Digital v Bricks & Mortar 68%,22%,10% 67%,25%,8% 66%,20%,14% 70%,21%,8%
Trend 7: Big tech in FS 61%,30%,8% 63%,31%,6% 57%,31%,11% 63%,29%,8%
Thinking ahead to 2025 And finally, thinking ahead to 2025,what do you expect to be your organisation's top 3 challenges over the next 5 years in the order of priority for your organisation? - Ranked 1-3

Data shown:

  • Percentage of respondents who included each answer in their top 3

New and digital only market entrants 14% 13% 15% 14%
Inadequacy of basic infrastructure 8% 11% 6% 6%
Increasing frequency of cyber threats 19% 18% 21% 19%
Regulatory compliance 20% 16% 21% 24%
Investor demands 12% 12% 13% 10%
Low or zero interest rate environment 17% 18% 17% 17%
Increasing inequality 9% 12% 9% 7%
Geopolitical uncertainty 15% 13% 17% 15%
Climate change and environmental issues e.g. ESG 15% 18% 13% 13%
Crisis response preparedness 14% 15% 15% 13%
Customers loss of trust in their financial institutions 13% 16% 15% 9%
Attracting and retaining talented employees 17% 18% 17% 14%
Attracting new customers 19% 20% 19% 19%
Retaining existing customers 15% 14% 16% 14%
Increasing profitability of customers 16% 16% 15% 18%
Impact of new technologies 21% 20% 16% 26%
Product development 11% 12% 10% 11%
Pressure on Fees 15% 13% 18% 15%
Other (please specify) 0% 0% 0% 0%
Digital transformation 22% 19% 23% 26%
Don't know 1% 1% 1% 1%
AWM
Questions and Answers Global Asia Pac EMEA Americas
Regulatory Impact Thinking about the different areas that could potentially be impacted by regulatory changes over the next 5 years, which areas of regulation are you most concerned about?

Data shown:

  • Percentage of respondents who included each answer in their top 3

AML (Anti Money Laundering) 25% 26% 29% 22%
Use of new technology 31% 33% 27% 32%
Enhanced accountability 19% 24% 20% 13%
Open Banking 22% 26% 20% 16%
Central Bank Digital Currency (CBDC) 25% 30% 31% 15%
Data privacy and cybersecurity 51% 41% 47% 66%
Environment and climate (e.g. ESG) 32% 34% 37% 25%
Customer communication 21% 24% 14% 23%
Digital identity authentication 31% 35% 22% 32%
E-money/Cryptocurrency 26% 30% 27% 20%
KYC (Know Your Customer) 29% 36% 18% 25%
Local regulatory pressures - different regulations in different regions 33% 41% 29% 25%
New business model (crowdfunding, peer-to-peer lending) 24% 34% 16% 16%
Other (please specify) 1% 0% 0% 3%
Don't know 3% 0% 8% 4%
Cybersecurity Strategy Which of the following factors will have the greatest impact in shaping your cybersecurity strategy over the next 5 years?

Data shown:

  • Percentage of respondents who included each answer in their top 3

Shortage of cybersecurity talent 33% 42% 22% 27%
Introduction of new authentication technologies, such as biometrics 23% 28% 14% 22%
Increasing complexity of cyber threats 47% 41% 41% 59%
Introduction of fifth-generation (5G) cellular networks 27% 36% 20% 20%
Adoption of Internet of Things (IoT) hardware and software 32% 49% 14% 20%
Growing public concern over data privacy 36% 38% 24% 39%
Cybersecurity and data privacy regulations 48% 51% 47% 46%
Vulnerabilities in supply chains and business partners 31% 30% 27% 35%
Rising geopolitical tensions 33% 34% 31% 34%
Human vulnerabilities (unintentional or malicious) 30% 25% 35% 33%
Other (please specify) 0% 0% 0% 1%
Don't know 1% 1% 4% 0%
M&A, Divestitures or Carve-out Is your organisation likely to consider any Merger & Acquisition (M&A), Divestitures or Carve-out activity in the next 5 years?

Data shown:

  • Percentage of respondents who included each answer in their top 3

Yes - expect 1 or 2 M&A/Divestitures/Carve-out activities 31% 23% 14% 27%
Yes - expect 3 to 5 M&A/Divestitures/Carve-out activities 22% 38% 33% 20%
Yes - expect more than 5 M&A/Divestitures/Carve-out activities 22% 9% 8% 11%
No - we don't plan to consider any M&A/Divestitures/Carve-out activities expected within next 5 years 10% 23% 24% 19%
No - but we expect to be the target of an M&A/ Divestiture/Carve-out activity expected within next 5 years 4% 5% 4% 4%
Don't know 11% 3% 16% 19%
ESG Influence To what extent do you expect ESG (Environmental, Social and Corporate Governance) to influence the following aspects of your organisation's business model?

Data shown:

  • No influence
  • Moderate influence
  • Significant influence
  • Don't know
separated by commas in each table cell.

Selection of clients 21%,43%,33%,2% 9%,49%,39%,3% 22%,45%,31%,2% 37%,34%,28%,1%
Selection of suppliers (value chain partners) 15%,46%,35%,5% 6%,43%,49%,2% 16%,53%,24%,6% 25%,44%,23%,8%
Products/service offering 13%,43%,41%,3% 5%,51%,43%,1% 10%,35%,49%,6% 24%,39%,33%,4%
Investment decisions 12%,42%,43%,3% 5%,44%,50%,1% 10%,41%,45%,4% 23%,41%,33%,4%
Lending decisions 21%,43%,30%,5% 12%,49%,36%,3% 16%,49%,31%,4% 37%,33%,23%,8%
Recruitment of employees 19%,46%,32%,3% 10%,53%,35%,2% 27%,45%,24%,4% 27%,37%,32%,5%
Overall organisation's strategy 13%,44%,40%,2% 7%,44%,48%,1% 14%,47%,39%,0% 22%,43%,32%,4%
The role of employees in Financial Services The role of employees in Financial Services organisations is changing. Which of the following activities is your organisation planning topursue over the next 5 years to address a potential future skills gap?

Data shown:

  • Percentage of respondents who included each answer in their top 3

Change the composition of the workforce between permanent and contingent staff 40% 44% 35% 37%
Hire from competitors 27% 26% 24% 28%
Acquire a firm to access new skills/expertise 31% 45% 22% 18%
Establish a strong pipeline direct from education 45% 49% 24% 52%
Hire from outside the industry 27% 30% 16% 30%
Undertake significant retraining/upskilling 46% 45% 37% 52%
Outsource non-core activities to third parties 37% 40% 29% 37%
Other (please specify) 0% 0% 0% 0%
Don't know 6% 4% 12% 4%
Macro trends in FS Thinking about macro trends in the financial services industry, which of the statements below do you think is most likely to be true in the 2025?

Data shown for Trend 1:

  • Continued low interest rates will require that institutions increase investment in measures to reduce costs, digitise and improve productivity to maintain margins and profitability.
  • An eventual increase in interest rates in 2023 will help institutions improve margins and profitability.
  • No change.

Data shown for Trend 2:

  • Asset impairments resulting from the pandemic will further constrain lending and the risk-bearing capacity of regulated banks and insurers, increasing the share delivered by capital markets and the so-called shadow banking or alternative financing industry (such as PE funds and sovereigns) over today's levels.
  • After the pandemic subsides, alternative financing will return to today's levels or below.
  • No change.

Data shown for Trend 3:

  • Alternative providers of capital will increase in importance, forcing financial institutions to adjust their business models to a less pronounced role in providing capital (with a corresponding P&L impact) and find new ways to participate in the value ch
  • Policymakers will have not made the much needed regulatory, tax and legal changes to enable alternative financing to flourish, limiting its influence.
  • No change.

Data shown for Trend 4:

  • Regulatory initiatives that had been planned or temporarily postponed during the pandemic will be implemented in short order.
  • Regulatory initiatives that had been planned or temporarily postponed during the pandemic will be further delayed.
  • No change.

Data shown for Trend 5:

  • De-globalisation of financial institutions will continue as will offshoring and nearshoring.
  • Increased regionalisation of institutions and onshoring of operational activities will be driven by increased digitization and risk aversion.
  • No change.

Data shown for Trend 6:

  • Leading institutions will further digitise their customer interaction models, strengthen digital sales and service model interaction, and materially cut back on support functions and infrastructure that failed to prove their value during the pandemic.
  • Leading institutions will revive some of their 'brick and mortar' operations that closed during the pandemic.
  • No change.

Data shown for Trend 7:

  • Big tech companies will continue to push into arenas formerly exclusively owned by incumbent FS firms (such as payments and credit, lending, and trading).
  • Financial services incumbents will be able to fend off the big tech companies by increasing client satisfaction and trust with a wider and evolving set of products and services.
  • No change.

Trend 1: Interest rates 63%,31%,6% 68%,29%,3% 59%,33%,8% 59%,33%,8%
Trend 2: Alternative finance 53%,38%,8% 67%,30%,3% 45%,47%,8% 42%,43%,15%
Trend 3: Sources of capital 60%,30%,10% 68%,28%,4% 51%,33%,16% 56%,29%,15%
Trend 4: Regulatory initiatives 49%,37%,15% 56%,38%,6% 45%,33%,22% 42%,37%,22%
Trend 5: Globalisation 29%,53%,18% 38%,54%,8% 14%,51%,35% 25%,53%,22%
Trend 6: Digital v Bricks & Mortar 69%,21%,10% 72%,24%,5% 69%,16%,14% 66%,22%,13%
Trend 7: Big tech in FS 59%,33%,9% 58%,37%,5% 53%,37%,10% 63%,24%,13%
Thinking ahead to 2025 And finally, thinking ahead to 2025,what do you expect to be your organisation’s top 3 challenges over the next 5 years in the order of priority for your organisation? - Ranked 1-3

Data shown:

  • Percentage of respondents who included each answer in their top 3

New and digital only market entrants 11% 10% 12% 11%
Inadequacy of basic infrastructure 6% 6% 6% 5%
Increasing frequency of cyber threats 24% 22% 27% 25%
Regulatory compliance 24% 23% 22% 27%
Investor demands 15% 15% 16% 14%
Low or zero interest rate environment 14% 11% 16% 16%
Increasing inequality 6% 9% 2% 5%
Geopolitical uncertainty 21% 11% 22% 6%
Climate change and environmental issues e.g. ESG 13% 15% 8% 14%
Crisis response preparedness 17% 18% 22% 14%
Customers loss of trust in their financial institutions 11% 15% 10% 8%
Attracting and retaining talented employees 15% 18% 12% 14%
Attracting new customers 15% 21% 18% 6%
Retaining existing customers 12% 18% 22% 24%
Increasing profitability of customers 18% 20% 20% 15%
Impact of new technologies 25% 25% 14% 32%
Product development 10% 12% 10% 9%
Pressure on Fees 16% 13% 20% 16%
Other (please specify) 0% 0% 0% 1%
Digital transformation 22% 18% 16% 30%
Don't know 0% 0% 0% 1%
Banking
Questions and Answers Global Asia Pac EMEA Americas
Regulatory Impact Thinking about the different areas that could potentially be impacted by regulatory changes over the next 5 years, which areas of regulation are you most concerned about?

Data shown:

  • Percentage of respondents who included each answer in their top 3

AML (Anti Money Laundering) 26% 23% 24% 30%
Use of new technology 27% 26% 19% 34%
Enhanced accountability 26% 29% 22% 27%
Open Banking 27% 23% 29% 30%
Central Bank Digital Currency (CBDC) 31% 35% 26% 31%
Data privacy and cybersecurity 43% 31% 52% 46%
Environment and climate (e.g. ESG) 26% 33% 28% 19%
Customer communication 24% 27% 19% 26%
Digital identity authentication 31% 33% 30% 31%
E-money/Cryptocurrency 32% 32% 32% 32%
KYC (Know Your Customer) 30% 30% 28% 31%
Local regulatory pressures - different regulations in different regions 24% 23% 27% 23%
New business model (crowdfunding, peer-to-peer lending) 25% 24% 27% 23%
Other (please specify) 0% 0% 1% 0%
Don't know 1% 0% 0% 2%
Cybersecurity Strategy Which of the following factors will have the greatest impact in shaping your cybersecurity strategy over the next 5 years?

Data shown:

  • Percentage of respondents who included each answer in their top 3

Shortage of cybersecurity talent 36% 34% 39% 35%
Introduction of new authentication technologies, such as biometrics 26% 20% 26% 32%
Increasing complexity of cyber threats 45% 45% 38% 50%
Introduction of fifth-generation (5G) cellular networks 30% 38% 20% 31%
Adoption of Internet of Things (IoT) hardware and software 27% 31% 23% 28%
Growing public concern over data privacy 35% 30% 42% 34%
Cybersecurity and data privacy regulations 46% 38% 48% 50%
Vulnerabilities in supply chains and business partners 28% 21% 25% 36%
Rising geopolitical tensions 27% 25% 28% 27%
Human vulnerabilities (unintentional or malicious) 35% 40% 38% 29%
Other (please specify) 0% 0% 0% 0%
Don't know 2% 2% 2% 2%
M&A, Divestitures or Carve-out Is your organisation likely to consider any Merger & Acquisition (M&A), Divestitures or Carve-out activity in the next 5 years?

Data shown:

  • Percentage of respondents who included each answer in their top 3

Yes - expect 1 or 2 M&A/Divestitures/Carve-out activities 31% 24% 24% 30%
Yes - expect 3 to 5 M&A/Divestitures/Carve-out activities 26% 35% 31% 28%
Yes - expect more than 5 M&A/Divestitures/Carve-out activities 15% 24% 11% 15%
No - we don't plan to consider any M&A/Divestitures/Carve-out activities expected within next 5 years 17% 10% 22% 13%
No - but we expect to be the target of an M&A/ Divestiture/Carve-out activity expected within next 5 years 5% 4% 4% 6%
Don't know 6% 2% 8% 9%
ESG Influence To what extent do you expect ESG (Environmental, Social and Corporate Governance) to influence the following aspects of your organisation's business model?

Data shown:

  • No influence
  • Moderate influence
  • Significant influence
  • Don't know
separated by commas in each table cell.

Selection of clients 16%,42%,38%,5% 10%,43%,43%,4% 19%,41%,35%,5% 19%,41%,35%,5%
Selection of suppliers (value chain partners) 15%,45%,38%,3% 14%,45%,40%,1% 15%,46%,35%,4% 15%,44%,38%,3%
Products/service offering 11%,48%,38%,3% 10%,51%,37%,2% 14%,41%,41%,4% 10%,51%,35%,3%
Investment decisions 14%,41%,42%,3% 13%,40%,47%,0% 13%,40%,41%,6% 15%,43%,38%,4%
Lending decisions 14%,43%,41%,2% 12%,45%,43%,0% 18%,41%,38%,3% 11%,43%,42%,4%
Recruitment of employees 20%,42%,36%,2% 13%,52%,35%,0% 24%,33%,40%,3% 22%,41%,34%,3%
Overall organisation's strategy 11%,38%,47%,4% 11%,41%,48%,0% 14%,34%,43%,9% 9%,40%,50%,2%
The role of employees in Financial Services The role of employees in Financial Services organisations is changing. Which of the following activities is your organisation planning topursue over the next 5 years to address a potential future skills gap?

Data shown:

  • Percentage of respondents who included each answer in their top 3

Change the composition of the workforce between permanent and contingent staff 35% 33% 38% 34%
Hire from competitors 34% 33% 34% 34%
Acquire a firm to access new skills/expertise 35% 38% 28% 40%
Establish a strong pipeline direct from education 38% 40% 36% 39%
Hire from outside the industry 24% 23% 29% 21%
Undertake significant retraining/upskilling 44% 41% 45% 47%
Outsource non-core activities to third parties 33% 35% 30% 34%
Other (please specify) 0% 0% 0% 0%
Don't know 4% 3% 5% 4%
Macro trends in FS Thinking about macro trends in the financial services industry, which of the statements below do you think is most likely to be true in the 2025?

Data shown for Trend 1:

  • Continued low interest rates will require that institutions increase investment in measures to reduce costs, digitise and improve productivity to maintain margins and profitability.
  • An eventual increase in interest rates in 2023 will help institutions improve margins and profitability.
  • No change.

Data shown for Trend 2:

  • Asset impairments resulting from the pandemic will further constrain lending and the risk-bearing capacity of regulated banks and insurers, increasing the share delivered by capital markets and the so-called shadow banking or alternative financing industry (such as PE funds and sovereigns) over today's levels.
  • After the pandemic subsides, alternative financing will return to today's levels or below.
  • No change.

Data shown for Trend 3:

  • Alternative providers of capital will increase in importance, forcing financial institutions to adjust their business models to a less pronounced role in providing capital (with a corresponding P&L impact) and find new ways to participate in the value ch
  • Policymakers will have not made the much needed regulatory, tax and legal changes to enable alternative financing to flourish, limiting its influence.
  • No change.

Data shown for Trend 4:

  • Regulatory initiatives that had been planned or temporarily postponed during the pandemic will be implemented in short order.
  • Regulatory initiatives that had been planned or temporarily postponed during the pandemic will be further delayed.
  • No change.

Data shown for Trend 5:

  • De-globalisation of financial institutions will continue as will offshoring and nearshoring.
  • Increased regionalisation of institutions and onshoring of operational activities will be driven by increased digitization and risk aversion.
  • No change.

Data shown for Trend 6:

  • Leading institutions will further digitise their customer interaction models, strengthen digital sales and service model interaction, and materially cut back on support functions and infrastructure that failed to prove their value during the pandemic.
  • Leading institutions will revive some of their 'brick and mortar' operations that closed during the pandemic.
  • No change.

Data shown for Trend 7:

  • Big tech companies will continue to push into arenas formerly exclusively owned by incumbent FS firms (such as payments and credit, lending, and trading).
  • Financial services incumbents will be able to fend off the big tech companies by increasing client satisfaction and trust with a wider and evolving set of products and services.
  • No change.

Trend 1: Interest rates 62%,32%,6% 69%,25%,5% 58%,34%,8% 60%,35%,5%
Trend 2: Alternative finance 52%,40%,8% 62%,33%,5% 48%,44%,8% 48%,42%,10%
Trend 3: Sources of capital 55%,36%,9% 70%,24%,5% 51%,39%,10% 45%,45%,10%
Trend 4: Regulatory initiatives 49%,40%,12% 56%,40%,4% 40%,42%,18% 50%,37%,12%
Trend 5: Globalisation 41%,43%,16% 48%,47%,4% 34%,40%,26% 42%,43%,15%
Trend 6: Digital v Bricks & Mortar 66%,24%,10% 69%,24%,7% 60%,25%,15% 69%,24%,8%
Trend 7: Big tech in FS 65%,29%,6% 74%,25%,1% 63%,27%,10% 58%,34%,8%
Thinking ahead to 2025 And finally, thinking ahead to 2025,what do you expect to be your organisation’s top 3 challenges over the next 5 years in the order of priority for your organisation? - Ranked 1-3

Data shown:

  • Percentage of respondents who included each answer in their top 3

New and digital only market entrants 14% 12% 15% 13%
Inadequacy of basic infrastructure 8% 15% 6% 5%
Increasing frequency of cyber threats 17% 13% 21% 16%
Regulatory compliance 21% 14% 25% 23%
Investor demands 9% 5% 12% 10%
Low or zero interest rate environment 19% 23% 18% 17%
Increasing inequality 11% 15% 10% 8%
Geopolitical uncertainty 15% 15% 8% 10%
Climate change and environmental issues e.g. ESG 16% 16% 18% 14%
Crisis response preparedness 13% 13% 13% 13%
Customers loss of trust in their financial institutions 14% 16% 18% 9%
Attracting and retaining talented employees 17% 19% 15% 16%
Attracting new customers 18% 19% 12% 24%
Retaining existing customers 11% 10% 16% 17%
Increasing profitability of customers 17% 15% 15% 20%
Impact of new technologies 20% 16% 16% 27%
Product development 9% 12% 7% 9%
Pressure on Fees 15% 14% 19% 12%
Other (please specify) 0% 2% 3% 1%
Digital transformation 26% 21% 25% 30%
Don't know 2% 0% 0% 0%
Insurance
Questions and Answers Global Asia Pac EMEA Americas
Regulatory Impact Thinking about the different areas that could potentially be impacted by regulatory changes over the next 5 years, which areas of regulation are you most concerned about?

Data shown:

  • Percentage of respondents who included each answer in their top 3

AML (Anti Money Laundering) 55% 46% 51% 66%
Use of new technology 28% 23% 20% 38%
Enhanced accountability 29% 27% 31% 29%
Open Banking 29% 27% 31% 29%
Central Bank Digital Currency (CBDC) 26% 35% 29% 17%
Data privacy and cybersecurity 17% 25% 12% 16%
Environment and climate (e.g. ESG) 17% 21% 14% 16%
Customer communication 17% 19% 14% 19%
Digital identity authentication 21% 27% 18% 19%
E-money/Cryptocurrency 27% 27% 22% 31%
KYC (Know Your Customer) 23% 27% 12% 28%
Local regulatory pressures - different regulations in different regions 23% 29% 22% 17%
New business model (crowdfunding, peer-to-peer lending) 11% 8% 8% 16%
Other (please specify) 0% 0% 0% 0%
Don't know 4% 6% 6% 0%
Cybersecurity Strategy Which of the following factors will have the greatest impact in shaping your cybersecurity strategy over the next 5 years?

Data shown:

  • Percentage of respondents who included each answer in their top 3

Shortage of cybersecurity talent 43% 42% 45% 41%
Introduction of new authentication technologies, such as biometrics 45% 42% 45% 47%
Increasing complexity of cyber threats 36% 29% 37% 41%
Introduction of fifth-generation (5G) cellular networks 37% 33% 43% 36%
Adoption of Internet of Things (IoT) hardware and software 30% 25% 22% 40%
Growing public concern over data privacy 24% 21% 20% 29%
Cybersecurity and data privacy regulations 32% 25% 37% 33%
Vulnerabilities in supply chains and business partners 23% 23% 33% 16%
Rising geopolitical tensions 21% 19% 22% 22%
Human vulnerabilities (unintentional or malicious) 25% 19% 24% 29%
Other (please specify) 0% 0% 0% 0%
Don't know 5% 6% 4% 5%
M&A, Divestitures or Carve-out Is your organisation likely to consider any Merger & Acquisition (M&A), Divestitures or Carve-out activity in the next 5 years?

Data shown:

  • Percentage of respondents who included each answer in their top 3

Yes - expect 1 or 2 M&A/Divestitures/Carve-out activities 23% 25% 33% 26%
Yes - expect 3 to 5 M&A/Divestitures/Carve-out activities 28% 17% 29% 22%
Yes - expect more than 5 M&A/Divestitures/Carve-out activities 23% 8% 12% 10%
No - we don't plan to consider any M&A/Divestitures/Carve-out activities expected within next 5 years 10% 21% 22% 26%
No - but we expect to be the target of an M&A/ Divestiture/Carve-out activity expected within next 5 years 6% 10% 4% 5%
Don't know 10% 19% 0% 10%
ESG Influence To what extent do you expect ESG (Environmental, Social and Corporate Governance) to influence the following aspects of your organisation's business model?

Data shown:

  • No influence
  • Moderate influence
  • Significant influence
  • Don't know
separated by commas in each table cell.

Selection of clients 26%,44%,29%,1% 15%,44%,40%,2% 22%,45%,33%,0% 40%,43%,17%,0%
Selection of suppliers (value chain partners) 21%,50%,26%,3% 21%,48%,25%,6% 20%,53%,27%,0% 22%,48%,26%,3%
 Products/service offering 15%,45%,39%,1% 10%,42%,46%,2% 8%,57%,33%,2% 24%,38%,38%,0%
Investment decisions 15%,44%,39%,3% 17%,38%,46%,0% 16%,43%,39%,2% 12%,50%,33%,5%
 Lending decisions 25%,46%,25%,5% 21%,50%,27%,2% 22%,49%,22%,6% 31%,40%,24%,5%
Recruitment of employees 23%,45%,28%,5% 29%,46%,25%,0% 16%,45%,33%,6% 24%,43%,26%,7%
Overall organisation's strategy 14%,46%,37%,3% 13%,40%,46%,2% 16%,43%,39%,2% 14%,55%,28%,3%
The role of employees in Financial Services The role of employees in Financial Services organisations is changing. Which of the following activities is your organisation planning topursue over the next 5 years to address a potential future skills gap?

Data shown:

  • Percentage of respondents who included each answer in their top 3

Change the composition of the workforce between permanent and contingent staff 26% 33% 27% 21%
Hire from competitors 26% 21% 37% 21%
Acquire a firm to access new skills/expertise 27% 33% 22% 26%
Establish a strong pipeline direct from education 34% 29% 24% 45%
Hire from outside the industry 28% 21% 31% 33%
Undertake significant retraining/upskilling 49% 44% 53% 50%
Outsource non-core activities to third parties 35% 42% 29% 34%
Other (please specify) 0% 0% 0% 0%
Don't know 5% 4% 4% 7%
Macro trends in FS Thinking about macro trends in the financial services industry, which of the statements below do you think is most likely to be true in the 2025?

Data shown for Trend 1:

  • Continued low interest rates will require that institutions increase investment in measures to reduce costs, digitise and improve productivity to maintain margins and profitability.
  • An eventual increase in interest rates in 2023 will help institutions improve margins and profitability.
  • No change.

Data shown for Trend 2:

  • Asset impairments resulting from the pandemic will further constrain lending and the risk-bearing capacity of regulated banks and insurers, increasing the share delivered by capital markets and the so-called shadow banking or alternative financing industry (such as PE funds and sovereigns) over today's levels.
  • After the pandemic subsides, alternative financing will return to today's levels or below.
  • No change.

Data shown for Trend 3:

  • Alternative providers of capital will increase in importance, forcing financial institutions to adjust their business models to a less pronounced role in providing capital (with a corresponding P&L impact) and find new ways to participate in the value ch
  • Policymakers will have not made the much needed regulatory, tax and legal changes to enable alternative financing to flourish, limiting its influence.
  • No change.

Data shown for Trend 4:

  • Regulatory initiatives that had been planned or temporarily postponed during the pandemic will be implemented in short order.
  • Regulatory initiatives that had been planned or temporarily postponed during the pandemic will be further delayed.
  • No change.

Data shown for Trend 5:

  • De-globalisation of financial institutions will continue as will offshoring and nearshoring.
  • Increased regionalisation of institutions and onshoring of operational activities will be driven by increased digitization and risk aversion.
  • No change.

Data shown for Trend 6:

  • Leading institutions will further digitise their customer interaction models, strengthen digital sales and service model interaction, and materially cut back on support functions and infrastructure that failed to prove their value during the pandemic.
  • Leading institutions will revive some of their 'brick and mortar' operations that closed during the pandemic.
  • No change.

Data shown for Trend 7:

  • Big tech companies will continue to push into arenas formerly exclusively owned by incumbent FS firms (such as payments and credit, lending, and trading).
  • Financial services incumbents will be able to fend off the big tech companies by increasing client satisfaction and trust with a wider and evolving set of products and services.
  • No change.

Trend 1: Interest rates 54%,34%,12% 50%,33%,17% 53%,35%,12% 59%,33%,9%
Trend 2: Alternative finance 50%,37%,12% 52%,35%,13% 45%,37%,18% 53%,40%,7%
Trend 3: Sources of capital 46%,32%,22% 48%,25%,27% 41%,37%,22% 50%,33%,17%
Trend 4: Regulatory initiatives 44%,43%,14% 33%,50%,17% 55%,27%,18% 43%,50%,7%
Trend 5: Globalisation 30%,44%,26% 35%,44%,21% 33%,41%,27% 24%,47%,29%
Trend 6: Digital v Bricks & Mortar 61%,24%,15% 35%,40%,25% 76%,12%,12% 71%,21%,9%
Trend 7: Big tech in FS 60%,27%,13% 58%,27%,15% 55%,29%,16% 66%,26%,9%
Thinking ahead to 2025 And finally, thinking ahead to 2025,what do you expect to be your organisation’s top 3 challenges over the next 5 years in the order of priority for your organisation? - Ranked 1-3

Data shown:

  • Percentage of respondents who included each answer in their top 3

New and digital only market entrants 19% 21% 22% 14%
Inadequacy of basic infrastructure 15% 15% 14% 17%
Increasing frequency of cyber threats 19% 15% 14% 26%
Regulatory compliance 25% 21% 31% 24%
Investor demands 17% 19% 16% 17%
Low or zero interest rate environment 16% 15% 16% 17%
Increasing inequality 19% 19% 27% 14%
Geopolitical uncertainty 14% 13% 12% 17%
Climate change and environmental issues e.g. ESG 13% 13% 16% 10%
Crisis response preparedness 13% 15% 12% 12%
Customers loss of trust in their financial institutions 10% 13% 27% 28%
Attracting and retaining talented employees 23% 10% 12% 9%
Attracting new customers 11% 13% 12% 9%
Retaining existing customers 15% 13% 18% 16%
Increasing profitability of customers 16% 27% 10% 12%
Impact of new technologies 11% 13% 12% 9%
Product development 12% 10% 10% 14%
Pressure on Fees 12% 13% 12% 10%
Other (please specify) 10% 15% 4% 10%
Digital transformation 2% 0% 0% 0%
Don't know 0% 2% 0% 3%
Payments
Questions and Answers Global Asia Pac EMEA Americas
Regulatory Impact Thinking about the different areas that could potentially be impacted by regulatory changes over the next 5 years, which areas of regulation are you most concerned about?

Data shown:

  • Percentage of respondents who included each answer in their top 3

AML (Anti Money Laundering) 13%
Use of new technology 26%
Enhanced accountability 17%
Open Banking 30%
Central Bank Digital Currency (CBDC) 30%
Data privacy and cybersecurity 39%
Environment and climate (e.g. ESG) 30%
Customer communication 26%
Digital identity authentication 13%
E-money/Cryptocurrency 22%
KYC (Know Your Customer) 26%
Local regulatory pressures - different regulations in different regions 26%
New business model (crowdfunding, peer-to-peer lending) 17%
Other (please specify) 0%
Don't know 0%
Cybersecurity Strategy Which of the following factors will have the greatest impact in shaping your cybersecurity strategy over the next 5 years?

Data shown:

  • Percentage of respondents who included each answer in their top 3

Shortage of cybersecurity talent 26%
Introduction of new authentication technologies, such as biometrics 30%
Increasing complexity of cyber threats 39%
Introduction of fifth-generation (5G) cellular networks 26%
Adoption of Internet of Things (IoT) hardware and software 26%
Growing public concern over data privacy 30%
Cybersecurity and data privacy regulations 48%
Vulnerabilities in supply chains and business partners 17%
Rising geopolitical tensions 26%
Human vulnerabilities (unintentional or malicious) 30%
Other (please specify) 0%
Don't know 0%
M&A, Divestitures or Carve-out Is your organisation likely to consider any Merger & Acquisition (M&A), Divestitures or Carve-out activity in the next 5 years?

Data shown:

  • Percentage of respondents who included each answer in their top 3

Yes - expect 1 or 2 M&A/Divestitures/Carve-out activities 30%
Yes - expect 3 to 5 M&A/Divestitures/Carve-out activities 30%
Yes - expect more than 5 M&A/Divestitures/Carve-out activities 13%
No - we don't plan to consider any M&A/Divestitures/Carve-out activities expected within next 5 years 17%
No - but we expect to be the target of an M&A/ Divestiture/Carve-out activity expected within next 5 years 0%
Don't know 9%
ESG Influence To what extent do you expect ESG (Environmental, Social and Corporate Governance) to influence the following aspects of your organisation's business model?

Data shown:

  • No influence
  • Moderate influence
  • Significant influence
  • Don't know
separated by commas in each table cell.

Selection of clients 13%,30%,52%,4%
Selection of suppliers (value chain partners) 22%,30%,43%,4%
Products/service offering 9%,43%,43%,4%
Investment decisions 4%,43%,43%,9%
Lending decisions 13%,48%,35%,4%
Recruitment of employees 17%,35%,48%,0%
Overall organisation's strategy 9%,39%,43%,9%
The role of employees in Financial Services The role of employees in Financial Services organisations is changing. Which of the following activities is your organisation planning topursue over the next 5 years to address a potential future skills gap?

Data shown:

  • Percentage of respondents who included each answer in their top 3

Change the composition of the workforce between permanent and contingent staff 17%
Hire from competitors 22%
Acquire a firm to access new skills/expertise 22%
Establish a strong pipeline direct from education 39%
Hire from outside the industry 52%
Undertake significant retraining/upskilling 26%
Outsource non-core activities to third parties 52%
Other (please specify) 0%
Don't know 0%
Macro trends in FS Thinking about macro trends in the financial services industry, which of the statements below do you think is most likely to be true in the 2025?

Data shown for Trend 1:

  • Continued low interest rates will require that institutions increase investment in measures to reduce costs, digitise and improve productivity to maintain margins and profitability.
  • An eventual increase in interest rates in 2023 will help institutions improve margins and profitability.
  • No change.

Data shown for Trend 2:

  • Asset impairments resulting from the pandemic will further constrain lending and the risk-bearing capacity of regulated banks and insurers, increasing the share delivered by capital markets and the so-called shadow banking or alternative financing industry (such as PE funds and sovereigns) over today's levels.
  • After the pandemic subsides, alternative financing will return to today's levels or below.
  • No change.

Data shown for Trend 3:

  • Alternative providers of capital will increase in importance, forcing financial institutions to adjust their business models to a less pronounced role in providing capital (with a corresponding P&L impact) and find new ways to participate in the value ch
  • Policymakers will have not made the much needed regulatory, tax and legal changes to enable alternative financing to flourish, limiting its influence.
  • No change.

Data shown for Trend 4:

  • Regulatory initiatives that had been planned or temporarily postponed during the pandemic will be implemented in short order.
  • Regulatory initiatives that had been planned or temporarily postponed during the pandemic will be further delayed.
  • No change.

Data shown for Trend 5:

  • De-globalisation of financial institutions will continue as will offshoring and nearshoring.
  • Increased regionalisation of institutions and onshoring of operational activities will be driven by increased digitization and risk aversion.
  • No change.

Data shown for Trend 6:

  • Leading institutions will further digitise their customer interaction models, strengthen digital sales and service model interaction, and materially cut back on support functions and infrastructure that failed to prove their value during the pandemic.
  • Leading institutions will revive some of their 'brick and mortar' operations that closed during the pandemic.
  • No change.

Data shown for Trend 7:

  • Big tech companies will continue to push into arenas formerly exclusively owned by incumbent FS firms (such as payments and credit, lending, and trading).
  • Financial services incumbents will be able to fend off the big tech companies by increasing client satisfaction and trust with a wider and evolving set of products and services.
  • No change.

Trend 1: Interest rates 65%,22%,13%
Trend 2: Alternative finance 52%,26%,22%
Trend 3: Sources of capital 65%,22%,13%
Trend 4: Regulatory initiatives 52%,43%,4%
Trend 5: Globalisation 39%,43%,17%
Trend 6: Digital v Bricks & Mortar 83%,13%,4%
Trend 7: Big tech in FS 74%,26%,0%
Thinking ahead to 2025 And finally, thinking ahead to 2025,what do you expect to be your organisation’s top 3 challenges over the next 5 years in the order of priority for your organisation? - Ranked 1-3

Data shown:

  • Percentage of respondents who included each answer in their top 3

New and digital only market entrants 9%
Inadequacy of basic infrastructure 22%
Increasing frequency of cyber threats 4%
Regulatory compliance 0%
Investor demands 13%
Low or zero interest rate environment 13%
Increasing inequality 26%
Geopolitical uncertainty 0%
Climate change and environmental issues e.g. ESG 13%
Crisis response preparedness 9%
Customers loss of trust in their financial institutions 9%
Attracting and retaining talented employees 22%
Attracting new customers 26%
Retaining existing customers 30%
Increasing profitability of customers 17%
Impact of new technologies 35%
Product development 17%
Pressure on Fees 13%
Other (please specify) 0%
Digital transformation 17%
Don't know 0%

Payments 2025 & beyond

The financial services industry is in the midst of a significant transformation, accelerated by the COVID-19 pandemic. And given the key role digitisation plays in the financial lives of more and more of the world’s population, electronic payments are at the epicentre of this transformation.
 
 
 
 
 
 

Insurance 2025 and Beyond

Five key trends influencing the industry and five strategic imperatives insurers should consider as they rethink their strategies and plan for the future.
 
 
 
 
 
 

Contact PwC’s Financial Services team

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Contact us

John  Garvey

John Garvey

Global Financial Services Leader Principal, PwC United States

Tel: +1 646 471 2422

Olwyn Alexander

Olwyn Alexander

Global Asset and Wealth Management Leader, Partner, PwC Ireland (Republic of)

Tel: +353 (0) 1 792 8719

Kurtis Babczenko

Kurtis Babczenko

Global Banking and Capital Markets Leader, and US Finance Transformation Leader, PwC United States

Rima Adas

Rima Adas

EMEA FS Leader, PwC Luxembourg

Jim Bichard

Jim Bichard

Global Insurance Leader, Partner, PwC United Kingdom

Tel: +44 (0)7841 562560

Nicky  Wakefield

Nicky Wakefield

Global FS Advisory Leader, PwC Singapore

Julien Courbe

US FS Leader, PwC United States

Tel: + 1 646 471 4771

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