2025 banking and capital markets outlook
As the banking industry adapts to a low-growth, lower-rate environment, banks can reinforce their foundation for sustainable growth with ingenuity and discipline.
Banking industry leaders will likely find themselves greeting 2025 with mixed emotions and some uncertainty around how the year will unfold and impact their institutions. Although inflationary pressures have eased and interest rates are declining, concerns persist given subpar economic growth, ongoing geopolitical shocks, and regulatory uncertainty. Even though banks will likely have to contend with a challenging set of macroeconomic conditions in the coming year, many will be relieved to leave the challenges of 2024 behind.
This report addresses five critical questions that bank executives should prioritize in 2025—a year that could be pivotal in many respects. But it’s important to recognize that other priorities, such as accelerating the transition to a green economy and revamping talent models for an AI-driven future, will also demand attention.
2025 could be a defining moment for establishing sustainable growth in the banking industry. The strategic actions taken now could be the catalysts that propel banks toward a brighter, more resilient future. By responding decisively, banks can ensure that the path to success is not just aspirational, but achievable.
Key questions
- How—and to what extent—will macroeconomic shifts impact US banks in 2025?
- How could the Basel III Endgame re-proposal impact the banking industry?
- What actions can banks take in 2025 take to boost noninterest income?
- Will the promise of an AI-powered bank accelerate tech modernization?
- Why are banks’ efforts to manage costs typically unsustainable, and what should they do about it?
