In key English-speaking markets like the US, UK, and Australia, nearly 7 out of 10 banking customers expect that they will be able to do every financial task using only their mobile app.
This basic change in what consumers expect is redefining the banking app. For this reason, banks must from scratch define their strategy, basing it on four technology pillars and at the same time dealing with growing pressure from regulators.
Mobile Banking 2025: Balancing Regulation and Innovation
This growing reliance on mobile has led to what is known as the ‘app as the bank’ phenomenon; for millions of customers around the world, the interface on their smartphone has simply become their bank. This thing raises the stakes and can create a big strain on resources. On one hand, banks must spend a great deal of money to follow new, strict legal rules. The costs of putting just the Digital Operational Resilience Act (DORA) in place have already gone above €1 million for 38% of companies in the EU.
On the other hand, they must keep spending money on app development to meet what their customers now demand. A clear majority of adult internet users believe that they should have the possibility to manage all their finances through a mobile app—65% in the US, 68% in the UK, and as high as 73% in Australia.
Bank Mobile Apps in 2025: 4 Pillars
The strategic change of the mobile app into the customer’s financial centre is built on four key technology pillars:
- Artificial Intelligence (AI)
- Super-apps and value-added services (VAS)
- Open banking and embedded finance
- Biometrics
Artificial Intelligence as the Standard in Mobile Banking
Its growing importance we can see in the amount of money being invested, which is driven by clear business benefits. AI algorithms can cut losses from fraud by up to 50%, and AI-based personalisation can increase revenue by 5-20%.
Forecasts for 2025 value the global AI in banking market at around $34.58 billion, with a compound annual growth rate (CAGR) of over 30%. Other estimates suggest a value of $26.7 billion with a growth rate of 32.6% (CAGR). This means in practice a move away from simple chatbots to advanced systems, which give the possibility of highly personalised offers, proactive financial advice, and real-time risk management.
Super-apps and VAS, or how Banks are fighting for Customer Engagement
The top goal for banks is to make their banking app into a central hub for managing daily life—a model known as a Super-App. The potential in this area is shown by the global market value, which is estimated to be $127.46 billion in 2025. This growth is driven by the chance to create new income streams and build a competitive edge against fintech companies.
But how do banks plan to achieve such a big vision? The solution is often a step-by-step strategy that begins with adding value-added services (VAS). The POP Pankki mobile banking app from the Finnish group provides a prime example. By integrating extra sales channels for insurance and financial products, the company grew its customer base in this sector by almost 20% within the first year.
Open Banking and embedded Finance: a new Era of Service Monetisation
One of the most noticeable strategic shifts in 2025 is the change in how open banking is seen. Not long ago, people looked on it only as a regulatory duty, but now it is seen as a new source of income.
This model is monetised by offering advanced, paid-for APIs to outside partners. This lets them build banking services—like ‘buy now, pay later’ (BNPL) payments or quick loans—directly into their e-commerce platforms or booking systems. This model, known as embedded finance, allows banks to reach customers with an offer at the exact moment a need arises, for the user.
Biometrics as the Foundation of Security and Convenience in Banking Apps
Biometrics offers a unique set of benefits. They both increase security and greatly improve the customer experience, solving the long-standing trade-off between protection and convenience. The scale of its use is reflected in the value of the mobile biometrics market, estimated to be worth over $51 billion in 2025, with an annual growth rate of 21.7% (CAGR).
The frustration from remembering passwords is getting rid of, becoming a key part of building digital trust in the customer-bank relationship.
Summary: The Future of Mobile Banking is to be a trusted Partner in a Customer’s Digital Life
Success in the new era of mobile banking does not depend only on selling your own products, but on the ability to manage a network of partners and services within a wider ecosystem. To achieve this, however, requires more than just new technology. It becomes vital to balance regulatory demands with the necessary investments in technologies that have the potential to shape the future.
Winners will be the banking institutions, which can use the combined power of key technologies: open banking APIs as the technical foundation, Artificial Intelligence as the personalisation engine, and biometrics as the secure point of access. In the end, the question for bank boards today isn’t ‘what kind of mobile app should we build?’, but ‘what role do we want to play in our customers’ digital lives?’.
Author Profile
- Blogger by Passion | Contributor to many Business Blogs in the United Kingdom | Fascinated to Write Blogs in Business & Startup Niches
Latest entries
Business AdviceSeptember 3, 2025The End of Apps, the Beginning of Ecosystems: Mobile Banking in 2025
Must Read NewsAugust 13, 20257 Simple Home Upgrades That Boost Comfort in Every Season
EnvironmentAugust 12, 20255 Situations Where Concrete Barriers Outperform Plastic Alternatives
Must Read NewsJuly 29, 2025How Regional Design Studios Are Shaping Urban Living Standards
