#None #digital banking #Sopra Steria #Financial Well-Being

Sopra Steria's Insights on the Future of Banking

On April 8, 2025, Sopra Steria, a leading name in the European technology landscape, unveiled the 2025 edition of its Digital Banking Experience Report (DBX). This report emphasizes the significant shift towards prioritizing financial well-being in the banking sector. Given the current state of economic volatility, financial institutions are striving to provide customers with tools and services that not only ensure their financial security but also build trust and promote lasting relationships.

Key Themes in the Report

The report identifies five pivotal areas that are shaping the landscape of the financial industry: payments, cryptocurrencies, generative AI, data protection, and sustainability. It reveals that while industry-wide digital transformation accelerates, a staggering 93% of banks are grappling with challenges related to their digital initiatives. The main obstacles stem from aging IT infrastructures, persistent cyber threats, and complex regulatory environments that demand immediate attention.

Critical Findings from the 2025 Report

1. Financial Well-Being as a Competitive Edge

More than half (52%) of surveyed banks are actively enhancing their suite of digital solutions aimed at improving customer financial literacy and management. Banks with a more developed service model are incorporating advanced technology solutions that enhance customer engagement and offer comprehensive financial oversight.

2. Evolution of Payment Methods

Digital payment adoption is booming, with 87% usage reported in markets such as Germany and Italy. Banks are focusing their investments on modernizing payment systems through cloud technologies. Notably, 66% of banks have already embraced cloud-native solutions, and 32% are planning to integrate them soon. Additionally, innovations like Buy Now, Pay Later (BNPL) and digital wallets are gaining traction, although concerns regarding cybersecurity and fraud are prompting a budget increase of over 10% for risk management.

3. The Rise of Generative AI in Banking

Artificial Intelligence is becoming indispensable within the banking sector. About 47% of consumers are using generative AI tools weekly, prompting banks to strategically pivot towards this technology. While banks recognize the potential impact of GenAI on risk assessment, customer KYC (Know Your Customer) protocols, and fraud management, they tread with caution, prioritizing compliance, security, and data privacy. Consequently, 61% of banks anticipate increasing their investment in these technologies by 10% or more in the coming years.

4. Commitment to Data Protection and Privacy

As more banks enhance their technology offerings, there is a heightened focus on safeguarding consumer data. The integration of robust data protection measures is not just a regulatory requirement but a fundamental aspect of rebuilding trust with customers. Financial institutions are redefining standard practices by fortifying their cybersecurity frameworks to better combat data breaches and cyber threats.

5. Sustainable Banking Practices

Sustainability remains a prominent theme in banking strategies as institutions recognize their pivotal role in addressing environmental concerns. The commitment to integrating sustainable practices in financial models promises to attract socially conscious consumers, thereby enhancing brand loyalty.

Conclusion

The 2025 Digital Banking Experience Report from Sopra Steria illustrates how financial well-being has transitioned from a peripheral concern to a central business objective for banks. The industry is gradually reshaping itself, ensuring that financial institutions not only meet modern demands but also secure their future in an increasingly competitive landscape. As banks invest in technology and innovative solutions, only those who prioritize customer financial welfare, security, and sustainable practices will thrive in the evolving banking environment.