In 2025, a double whammy of continued decline in customer experience quality and worsening profitability will hit banks. Banking executives must double down on product and service innovation, especially if they want to compete on conversational banking and “save now, pay later” offerings. Unfortunately, the widespread adoption of real-time processing will fail to catalyze innovation due to challenges with legacy infrastructures and regulatory compliance. Keen to unlock innovation and slash costs, another major bank will announce a transition from legacy systems to a next-generation digital platform. This report outlines Forrester’s predictions for banking in 2025.