Growth and confidence are projected in 2025 for banks and credit unions, according to new Wipfli research
Leaders are entering 2025 cautiously optimistic, driven by stabilizing interest rates, easing liquidity concerns and a resurgence in growth projections
MILWAUKEE, Jan. 2, 2025 /PRNewswire/ -- Wipfli, a top 25 advisory and accounting firm, published today the results of two industry surveys from the banking and credit union sectors that provide valuable insights into current market challenges and outline long-term growth strategies.
Based on the extensive data, the surveyed financial institution leaders describe challenges such as cybersecurity, talent shortages and digital transformation maturity as continuing to shape strategies and priorities in 2025.
"This year's findings underscore an industry at a critical juncture — embracing AI and digital transformation while navigating persistent challenges like cybersecurity and talent shortages," said Anna Kooi, Wipfli's financial services practice leader. "Financial institutions that stay focused on strategic goals and leverage data-driven insights are best positioned to lead the way."
Financial institutions are feeling bullish this year with 58% anticipating asset growth of 5% or more; last year, only 36% anticipated that level of growth. Simultaneously, banks continue to diversify their services to ward off competitors, lure new customers and to capture Gen Zers 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. Yet many financial institutions also say net interest margin compression, core deposit growth and the economy/regulatory environment could get in the way of continued growth and market share.
"It's critical for banks to integrate their data tools strategically and intentionally," Kooi said. "With shrinking margins, most mid-market banks can't afford costly mistakes from siloed technology decisions. Investing in scalable, pragmatic technology architecture is essential."
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 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 have 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
The banking industry survey was based on responses from 345 financial institutions across the United States, and the credit unions survey had 106 credit unions respond. Both the State of the banking industry report and the State of credit unions report can be found on Wipfli's website:
State of the banking industry 2025 executive summary
State of the credit union industry 2025 executive summary
About Wipfli LLP
Wipfli is an accounting and advisory firm that delivers holistic solutions to help clients navigate the modern marketplace, optimize performance and drive growth. Our more than 3,200 associates deliver digital, people, strategy, risk, financial and outsourcing solutions to 59,000+ clients.
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SOURCE Wipfli LLP