The financial services industry is evolving rapidly, with 2025 set to be a transformative year. As consumer expectations rise and regulatory pressures increase, financial institutions must adapt to remain competitive. Here are three key trends that we recommend financial institutions focus on to provide greater access and value to consumers while enhancing their own competitiveness and growth.
Instant real-time payments: The new standard
Real-time payments (RTP) are no longer a luxury but a necessity. With the Federal Reserve’s FedNow service gaining traction and private RTP networks expanding, the infrastructure for instant payments is becoming robust and widespread. Both consumers and businesses are demanding speed, convenience, and efficiency in financial transactions.
Why it matters
By 2025, it is expected that most financial institutions in the U.S. will support real-time payments, facilitating seamless money transfers across accounts. This growing adoption is driven by applications such as instant payroll, person-to-person payments, and business-to-business transactions, which particularly benefit businesses by improving cash flow and operational efficiency. Additionally, credit unions and smaller financial institutions are leveraging RTP to compete with larger banks and fintechs, providing their members with quicker access to funds.
Impact on consumers and credit unions
Real-time payments enhance financial inclusion by granting immediate access to funds for underserved populations, eliminating delays that can heighten financial stress. Credit unions can better serve their members' needs for speed and efficiency, strengthening relationships and reinforcing their role as trusted financial partners. To remain competitive, institutions must prioritize integrating RTP into their digital ecosystems, ensuring interoperability and a seamless user experience.
Digital card issuance: Instant access anytime, anywhere
The era of waiting for physical cards to arrive in the mail is over. Digital card issuance is transforming how consumers interact with their financial institutions by providing instant access to payment capabilities.
Why it matters
Customers can improve their experience by using digital cards immediately through mobile apps or digital wallets, reducing friction and increasing satisfaction. These digital cards often come with advanced security features like dynamic CVVs and tokenization, enhancing protection against fraud. Additionally, transitioning to digital cards supports sustainability by reducing the reliance on physical materials, aligning with the growing emphasis on environmental concerns.
Impact on consumers and credit unions
Digital card issuance offers consumers greater flexibility and convenience, allowing them to make purchases without delays. For credit unions, providing this capability highlights their innovation and member focus while reducing operational costs related to physical card production and delivery. As contactless payments and digital wallets become more popular, the ability to issue cards digitally is becoming an essential expectation for consumers. Credit unions that adopt this service can better compete with banks and fintechs, reinforcing their relevance in the digital age.
The rise of technology to monitor junk fees
Transparency is no longer optional in financial services. Consumers are increasingly aware of hidden costs, such as overdraft fees and maintenance charges, prompting regulatory bodies to take notice.
Emerging technologies
AI is also revolutionizing fee analysis by allowing institutions to identify and address perceived "junk" fees through detailed examinations of fee structures and customer feedback. Regulatory technology solutions are also helping institutions comply with evolving guidelines by providing real-time insights into fee practices. To enhance trust and loyalty, banks and credit unions are deploying consumer tools that empower customers to track and minimize fees.
Impact on consumers and credit unions
Increased transparency around fees leads to more equitable access to financial services, enabling consumers to make informed decisions and avoid predatory practices. For credit unions, proactively addressing junk fees builds trust, enhances brand loyalty, and positions them as advocates for consumer rights.
Whether you are just beginning to research an alternative for your digital banking or core solution offering, or are already on the path, VisiFI equips credit unions with innovative, member-focused solutions. By prioritizing speed, convenience, security, and trust, VisiFI empowers your credit union to stay competitive, foster member loyalty, and drive sustainable growth. Visit us at www.visifi.com
