2 April, 2025
The 2024 Gartner Report* explores the key drivers reshaping the retail banking industry, emphasizing the importance of cybersecurity as consumers demand robust security measures amid rising data breaches. The report also highlights the growing significance of environmental, social, and governance (ESG) factors, particularly among younger consumers who prioritize sustainability in their banking choices.
Generational differences in banking preferences are noted, with younger customers seeking in-person support for complex transactions while valuing rewards and financial education. The emergence of generative Al introduces both optimism and caution, as customers recognize its potential but are hesitant about its use in significant financial decisions.
*All data and information based on Gartner Report: Shape Retail Banking Strategy With the Forces.
The trend of unbundling banking services reflects consumers’ preference for specialized providers, driving a shift towards multiple banking relationships. Fintech companies are leveraging their technological expertise to challenge traditional banks, while neobanks rapidly acquire customers through innovative mobile-first strategies.Open banking facilitates greater access to consumer data, enhancing competition. Regulatory frameworks are adapting to encompass Al risks and climate-related financial considerations, while rising data-sharing restrictions necessitate new compliance strategies.
Overall, the report emphasizes the importance of embracing digital transformation, fostering a skilled workforce, and effectively managing technological debt as banks navigate these evolving dynamics.

Driving Forces of Retail Banking Industry
Customer
- Cybersecurity Concerns
- ESG Consciousness
- Generational Divide
- Generative Al Ambivalence
- Unbundling of Banking Services
Competitor
- Fintech Advantage
- Neobanks
- Open Banking Disintermediation
- Untapped Unbanked Population
Regulatory
- Al Regulations
- Climate Risk Regulations
- Cloud Partnerships
- Data-Sharing Restrictions
Organizational
- Al-Driven Workforce Augmentation
- Technical Debt
- Workforce Technology Skill Gaps
Technological
- API Expansion
- Synthetic Data
- Data Governance
- Generative Al
- Machine Customers
- Automation Going Mainstream
- Growing Off-Premises Technology Concerns
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