Trends Shaping the Financial Services Industry in 2025

The financial services industry has changed rapidly in the last few years. In Australia, banks, super funds, and fintechs are turning to AI to personalise services, improve efficiency, and meet changing customer expectations. At the same time, new regulations from the Australian Prudential Regulation Authority (APRA), the Australian Securities & Investments Commission (ASIC), and more are shaping how the industry moves forward.

This article explores how financial services are evolving in Australia, backed by insights gleaned from 9,500 consumers in our Connected Financial Services Report .

The financial services sector encompasses any business that offers support to clients in relation to their money management. These services can be for both individual consumers and businesses, and can vary from investment management to day-to-day banking.

While financial services are actions like advising on the best mortgage for a client's situation, a financial product is the mortgage itself.

Here’s a quick rundown of the most common types of business in financial services and where you might come across them in Australia.

The banking sector is a part of the financial services industry. However, since it’s one of the largest sectors, it’s worth noting the differences between it and the wider services industry.

• The overarching category that covers all money-related services
• Includes both client-facing services (e.g. wealth advice) and the infrastructure behind them (e.g. payments, compliance)
• Provides financial products such as investments, loans, and insurance
• Includes well-known and reputable insurance and superannuation insitutions
• Regulated by ASIC, APRA, AUSTRAC, and the ATO
• Working on evolving technologies like the blockchain, AI analytics, digital banking, and cybersecurity

• A subset of financial services focused on lending, credit, savings, and transaction management
• Covers retail, commercial, and investment banking
• Includes major banking players
• Also regulated by ASIC, APRA, AUSTRAC, and the ATO
• Prioritises digital innovation through mobile banking, fraud detection, and secure customer experiences

There has been substantial new regulation in the last year for the financial services industry. Here are the key changes in Australia that you should know about.

As of June 2025, BNPL platforms like Afterpay, Klarna, and Zip Pay now need to hold a credit licence , register with AFCA, conduct credit checks, and late payments can affect credit scores. For consumers, that’s the key thing to be aware of – that late payments can now affect your credit score.

In March 2025, the FAR expanded to include deposit-taking institutions (ADIs) and their authorised non-operating holding companies (NOHCs). For these entities (which include insurance, licenced NOHCs, and superannuation trustees), it will increase senior executive accountability.

Since February 2025, the Australian Banking Association has updated their policies to include new protections for small businesses, broadened the definitions of financial difficulty and raised the borrowing threshold to five million.

From July 2025, the Australian Super guarantee increases to 12% , and earnings on balances over $3 million face a 30% tax with the aim of improving retiree income security.

There are a number of regulatory developments underway that will affect the future of the financial services industry. Here are a few key upcoming developments to prepare for

The Australian Government is currently developing guardrails for high-risk uses of AI in financial services. The Voluntary AI Safety Standard will outline 10 policies to help organisations use AI safely and responsibly, including rules around transparency, testing and human oversight.

The APRA is planning to release stricter governance rules for banks, insurers, and super funds. The proposed changes are designed to make the rules simple, clear and more appropriate for the modern financial services sector.

From June 2026, the Consumer Data Right (CDR) will expand to cover non-bank lenders and BNPL products. This reset is designed to reduce compliance costs, simplify data sharing, and make it easier for consumers to access better financial deals.

Technological advances have transformed customer interactions across the financial services industry, shifting them toward more transactional experiences. At the same time, rising competition and the ease of accessing financial products have made it harder for businesses to stand out.

To stay competitive, financial service providers need to meet the following client expectations.

It's been a slow road for consumers to feel secure again after the global pandemic. However, in our latest Connected Financial Services Report , we surveyed 9,500 financial service consumers worldwide and found that 66% of consumers feel more financially stable than the previous year.

In addition, 97% of consumers have at least one financial goal. These goals vary generationally, with Gen Z and Millennials consumers (collectively more than half the population) focused on building wealth, while Gen X and Baby Boomers are focused on planning for retirement.

Services that remember these goals and provide proactive advice will stand out to clients. Platforms like Financial Services Cloud can assist with documenting your customers’ financial goals. You can then use AI agents to deliver personalised, data-driven responses to their questions.

Consumers are flooded with options for financial advice and products, but with an increasing move to self-service, what can make your business valuable to clients is quality, personalised service.

In our Connected Financial Services Report , we found that 46% of all consumers (and 55% of high-earners) will stay with a financial services business that delivers great service, even if they have higher fees.

This is great news for businesses focused on delivering quality services while maintaining healthy profit margins. They’ll be well-positioned to attract consumers who feel let down by competitors. With 56% of consumers saying their financial services provider fails to anticipate their needs, and only 15% saying their provider exceeds expectations, there’s a clear opportunity for businesses offering more proactive, personalised service.

Quality online service is a consumer expectation, yet we found that only 35% of consumers are satisfied with their digital banking interactions.

In addition, YouGov’s Digital Commerce Report found that 10% of Australian consumers are actively dissatisfied with their digital commerce experience.

Often, institutions have all the data to fix this and provide customers with a more individual experience, but no way to connect or action it. Workflow platforms like Mulesoft bring that data together, helping businesses deliver consistent, relevant experiences across every digital touchpoint.

Service is also a key element to a smooth digital experience. Now, with AI agents, you can use your unified data to provide a better client experience.

How AI Agents Are Transforming Financial Services, One Call at a Time

If a client tells their bank they’re hoping to buy a house in the next two years, it’s frustrating to receive marketing material or advice from consultants about long-term savings funds. It’s not applicable to the customer’s situation. In addition, the bank is missing an opportunity to add value to this client and sell financial products, such as a mortgage.

We found that 38% of consumers are fully satisfied with the level of personalisation they receive from their wealth management institution, and only 21% are happy with the personalisation they get from their bank.

This opens up a huge opportunity for businesses to entice new clients and upsell. Using dynamic platforms like Marketing Cloud, AI can update marketing materials like emails in real-time to make each piece of content fit the recipients' financial goals. Imagine the increase in your CTR when every email you send applies directly to the receiver.

Trust takes time to earn and can be lost in a second. With only 44% of consumers worldwide stating they trust the financial services sector with their data, it’s more important than ever to build data trust with your clients.

Many consumers also have privacy concerns about how their data will be used by AI, with only 10% fully trusting the use of AI in financial services.

We did, however, find top actions that you can take to build consumer trust in the use of AI.
They are:

1. Transparency into how AI is being used
2. Human validation of outputs
3. User control of how it’s used
4. Explainability of outcomes
5. Consistently accurate outputs

The consequences of data being mismanaged are that 84% of consumers will switch providers if they believe their data is being mishandled (up from 78% in 2023). Using a secure platform like Data Cloud allows you to safely collect customer data and use it in a proactive way to improve their experience.

The future of financial services encompasses a desire for a unified, more personalised customer experience and increased digital autonomy.

With plenty of financial service providers at their fingertips, consumers are spreading their loyalty. Fifty-four per cent of consumers stated they want to have a single provider, but only 22% actually do.

We found that the top factors that build long-lasting customer loyalty are:

1. Competitive rates, fees, and pricing
2. Timely and seamless customer service
3. A great digital experience

The way we manage, move, and invest money is evolving at a rapid pace. Here’s a quick snapshot of the 11 trends driving change across the financial services industry.

1. Data-driven decision-making for smarter financial insights
2. AI integration for personalised services and efficiency
3. Embedded finance for seamless transactions everywhere
4. Open banking and finance for secure data sharing and new services
5. Sustainable finance and ESG for ethical and responsible investing
6. Digital currencies for modern money movement
7. Blockchain technology for secure and transparent transactions
8. Customer experience for effortless and personalised banking
9. Cybersecurity management for protecting financial data
10. Neobanking and fintech for innovative digital financial services
11. Cloud adoption for flexible and scalable banking technology

In 2025, the financial services industry is undergoing rapid transformation. As technology, regulation, and customer expectations evolve, businesses must prioritise personalisation, digital innovation, and data trust to stay competitive.

For more insights on the state of the financial services industry, download the full Connected Financial Services Report (2nd Edition) . Read about what 9,500 consumers say they expect from financial institutions in 2025.

You can also watch the recent Agentforce Financial Services Summit Keynote to learn how you can navigate the future of banking, insurance, and wealth management.