What’s Going On in Banking Study Finds Banks Optimistic About 2025 Despite Challenges
Research indicates a redefined small business offering may save community banking
SCOTTSDALE, Ariz., January 27, 2025—Cornerstone Advisors announced today the release of its highly anticipated study, What’s Going On In Banking 2025: Happy(er) Days Are Here Again. Authored by noted fintech expert, Cornerstone chief research officer and Forbes contributor Ron Shevlin, the study collected insights from more than 300 senior executives from community banks and credit unions nationwide.
Study participants represent financial institutions that are “forward-thinking about technology, aggressive about growth and market share, and unafraid to take on the megabanks, upstart fintechs, and others competing with them for mind and market share,” Shevlin writes, likening them to what Steve Williams, CEO at Cornerstone Advisors, respectfully calls the “troublemakers.”
What’s Going On In Banking, recognized as the seminal report capturing trends, executive attitudes and technology plans for the banking industry, finds an industry facing myriad challenges in 2025, including a fragile economy, unpredictable interest rates, and a burdensome regulatory environment.
The study reveals that despite the uncertainties, 80% of surveyed bankers are optimistic about 2025. “While it might be a stretch to claim that happy days are here again, at least we can say that happier days are here,” Shevlin states. “This year, financial institutions look to set sail on much calmer seas to explore ways they and their technology providers can plan for the changes and challenges ahead.”
Highlights of the report include:
· Cost of funds top bank execs’ list of concerns for 2025. New member growth is the greatest concern for credit unions.
· 45% of banks and 38% of credit unions offer real-time payments—although roughly 8 in 10 only receive payments.
· Big fintech is considered the biggest competitive threat by bank and credit union executives.
· In 2025, nearly 30% of banks and credit unions plan to implement generative AI tools for the first time.
· Bank executives were less than 50% satisfied with their core system providers.
In the report, Shevlin concludes that redefined small business offerings may be needed to save community banking. “The problem with talking about ‘small business’ is that there’s no common definition for who or what fits under that label,” he says. “Defining ‘small business’ as companies with a certain level of revenue omits non-traditional consumers like gig workers, side hustlers, creators, and influencers. These underserved ‘bizumers’—part business, part consumer—will help save community banking from extinction.”
What’s Going On In Banking 2025 is the tenth in this series conducted annually by Cornerstone Advisors. It is available for download here.
On a Feb. 19 webinar, Shevlin and Williams will present key findings from What’s Going On in Banking 2025 and explore the year ahead for community-based financial institutions.
About Cornerstone Advisors
For more than 20 years, Cornerstone Advisors has delivered gritty insights, bold strategies, and data-driven solutions to build smarter banks, credit unions, and fintechs. For more information, visit www.crnrstone.com or connect with us on LinkedIn.
Media Contact:
Cate Pitts, Editorial Director
Cornerstone Advisors
(480) 425-5203
cpitts@crnrstone.com