Banks Go Digital-First: The New Standard for 2025

2025-06-16T06:21:47.690+02:00

Monday, 16/06/2025 | 04:21 GMT by Finance Magnates Staff

44% of young consumers in the UK believe neo banks offer significantly better tools and services than high street banks.
50% of survey respondents said they want their bank to help them manage subscriptions.

Banking is no longer just about managing money—it’s about delivering digital experiences that are seamless, secure, and deeply personalised. In 2025, banks across the globe are making bold moves to go digital-first, driven by changing consumer habits, rising fintech competition, and the demand for real-time financial access.

This shift isn’t a trend—it’s a transformation. And it’s happening fast.

A Generation Raised on Apps Expects More

A study by Visa and Tink revealed that almost half (44%) of young consumers in the UK believe neo banks offer significantly better tools and services than high street banks, and 27% already use third-party money management tools. This generation doesn’t just want digital options—they expect them to be fast, friendly, and helpful.

The research also found that 37% of UK consumers like their bank to give them more visibility over their finances. These numbers underline how digital experience now drives trust and loyalty.

Traditional banks, meanwhile, are feeling the pressure. 57% of banking executives say that attracting young customers is their biggest challenge for the coming year, and 79% see money management tools as critical to winning new clients.

From Balance Checkers to Digital Coaches

Digital-first banking is no longer about just checking balances. Today’s leading banks are building features that give customers insights, guidance, and control over their financial lives.

According to Visa and Tink’s research, modern mobile banking apps are starting to act like digital financial coaches. Features now being built into apps include:

Proactive balance forecasting to help avoid overdrafts
Personalised alerts for unusual spending or duplicate charges
Automated budgeting suggestions based on previous transactions
Subscription tracking with the ability to cancel or pause in-app

In fact, 50% of UK customers said they want their bank to help them manage subscriptions, and 30% said they’d switch providers just to receive alerts on double charges or budgeting tips.

This digital coaching approach benefits both sides. Banks gain more engaged, loyal users; customers gain clarity and control over their spending.

Security: A Core Pillar of the Digital-First Model

Going digital-first doesn’t just mean speed and convenience—it must also mean safety.

According to Visa, implementing world-class security across the entire customer journey is now a baseline expectation. This includes biometric logins (face and fingerprint) and real-time fraud alerts.

As fraud risks grow with faster payments, banks are shifting to proactive fraud detection, using AI models to spot suspicious behaviour in real time. These systems don’t just stop fraud—they also help reduce friction for good transactions.

Embedded Finance: Bringing Banking Where People Already Are

Digital-first banks are also embracing embedded finance, where banking services are built into non-banking platforms.

Visa notes that embedded finance tools are gaining traction, especially within the merchant ecosystem. For example, lending services are now being integrated into checkout flows, and white-label payment systems are enabling marketplaces to offer their own branded wallets.

This approach benefits everyone:

Banks gain new distribution channels
Platforms improve user stickiness
Consumers get seamless, contextual financial services
Developers can build fast using Visa’s open APIs and SDKs

Open Banking and the Subscription Economy

The rise of open banking is also pushing banks to become more flexible and API-driven. One practical use case is subscription management—where banks help customers track, control, and cancel recurring charges directly within the app.

Visa’s solution includes identifying where a user’s card is stored, flagging new subscriptions, and offering controls to pause or stop charges instantly.

For example, YellowPepper in Peru used Visa’s aliasing technology to launch PLIN, a peer-to-peer app where users can send money with just a phone number, showing how banks can partner with fintechs to deliver user-friendly experiences

What This Means for the Future

Digital-first isn’t a product. It’s a mindset—and a long-term strategy. Banks that succeed in 2025 and beyond will be those that put mobile tools at the heart of their offering, use AI to drive personalised insights, build secure, real-time payment rails, partner through APIs to extend reach, and stay responsive to shifting customer expectations.

For banks, this isn’t just about digital transformation—it’s about future survival.

The digital-first wave is not coming. It’s already here. Banks that lead with technology, simplicity, and customer value will be the ones that thrive in the fast-changing world of payments. Those that don’t may find themselves outpaced by more agile, customer-focused competitors.