As I look back on 2025, one thing is clear: whether you’re a bank, a mutual, a non-bank lender or a fintech, our industry was shaped by sharper competition, tighter margins, rising customer expectations, and an undeniable urgency to modernise. While every bank or lender faces its own specific challenges, if I look at the major industry reports[1][2][3] as well as recall the digital banking events I attended throughout the year, they have revealed clear commonalities, especially around digital transformation as the primary driver of growth.

So before we embark on 2026, let’s look at what stood out as the key themes from this year and what can be learned that will set a path forward for next year.

1. AI Is Becoming Central to Lending, Risk, and Customer Experience

No matter where you’re at in your digital transformation journey, AI has emerged as one of the most widely acknowledged growth enablers. While AI was also in the spotlight in 2024, I remember discussions around it being mostly in trial mode together with a lot of questions about safety, speed and scale. This year has seen more traction, and I can see the impact it’s having across the lending value chain:

• Loan origination is being accelerated with AI-powered verification and automated data capture
• Machine-learning models improve pricing, credit risk and early-warning detection
• Conversational interfaces and chatbots personalise interactions at scale
• Predictive analytics help align operations with customer needs

While there is great opportunity with AI, ethical frameworks, governance, and responsible deployment are priorities. One thing I took out of the Digital Banking Summit this year is that value is realised only when there is a clear purpose, and people, processes and data are aligned to use it safely and effectively.

2. Cost Reduction and Improved Productivity

Cost management is one of the most consistent themes across the sector. The industry reports show:

• Banks globally are targeting 10–20%+ cost reductions by 2030
• Mutuals are disproportionately affected due to lower margins, limited capital, and smaller teams
• Cost-to-income ratios remain stubbornly high, pushing institutions to modernise legacy technology and eliminate fragmentation.

The solutions focus on technology modernisation, automation, and simplified operating models, which unlock sustainable productivity gains. Savings can then be directed into innovation and growth.

At Nimo, we directly consulted with 20+ active lenders, brokers, and integration partners, asking them to identify productivity pain points we could help solve and then embedded AI within critical workflows to improve efficiencies. Broker engagement and deal conversions increased 80-90% driven by faster document ingestion, improved data accuracy, and automated pre-population across the entire origination process.

3. Modernisation of Core Platforms and Simplification of Technology Stacks

One thing I often see is fragmented legacy systems, which are a major hurdle for transformation. Many banks and lenders are still operating multiple different technologies accumulated over decades. The industry reports highlight that:

• Fragmented technology increases cost, risk, and operational complexity
• Legacy cores restrict real-time data, automation, and integration

All emphasise the same solution – a shift towards platform-based architectures and modern core banking systems, where multiple capabilities (product management, payments and invoicing, delinquency management) run on a single integrated system.

Modern cores are proving transformative. For example, Nimo’s core banking solution eliminates overnight batch processes with real-time processing, an extensive API library ensures seamless integrations and advanced connectivity, and with high flexibility and configurability you can quickly meet market demands and opportunities with fewer resources.

4. Human-Centred Transformation

Digital transformation is as much about people as it is about technology – both internal teams and customers – a theme repeated throughout the year at many of the digital banking events. The customer is always at the heart of everything we do, and banks and lenders need to understand the unique needs of their customers and continuously mature and personalise experiences.

With internal teams, there are talent shortages in specialty areas and there is a need to push and develop these skills now, otherwise a gap will emerge as reliance on AI grows. At the Digital Financial Services Summit, we discussed the essential need to invest in building internal capabilities, together with the ability to question, analyse, and validate insights and ensure teams can work collaboratively, as well as work confidently alongside AI.

5. Regulatory, Cyber, and Compliance Pressures Continue

Compliance complexity is an issue across the board, with banks and lenders facing continually changing expectations around cyber security, ethical AI, and data privacy. Compliance costs are rising, and the speed of regulatory change continues to challenge teams.

Technology-enabled compliance using analytics, automation and real-time data is becoming essential to reduce manual effort and strengthen oversight. As Nimo is purpose-built for financial services, it’s designed to help banks and lenders remain compliant with local and international regulations, ensuring that every loan and financial product adheres to legal and regulatory standards. The Nimo platform is regularly updated to reflect changes in the regulatory landscape which ensures compliance, including updates to financial regulations, tax laws, and data protection policies.

 

To summarise, the themes and experiences of 2025 all point to the need to continue to invest in digital transformation, in a continuous, evolving, always-on way.

The banks and lenders that will be a step ahead of the rest are those that responsibly adopt AI, modernise their foundations and simplify their technology, streamline end-to-end experiences, empower their people, and use technology to enable compliance.

Digital transformation is the clearest path to doing more with less, a strategic imperative in a margin-constrained environment.

If you’d like to discuss your digital transformation, chat with us today.

 

[1] KPMG Mutuals Industry Review 2025

[2] ABA Bank on It Report 2025

[3] BDO 2025 Financial Services Survey

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As CEO and co-founder of Nimo Industries, Leann leads the charge in driving digital transformation within the financial services sector. Having led change in the banking industry and witnessing the challenges lenders face in digitising processes—due to internal complexities, outdated legacy systems, and overly complicated solutions—Leann brings a unique perspective. Coupled with a background and practice in organisational psychology, she understands the cultural dynamics crucial for successful digital adoption and change management.

As adoption of the Nimo platform grows across financial services, Leann is passionate about not only implementing and digitising lending processes for lenders and members but also helping lenders navigate the complexities of transformation. She works to overcome the “this too shall pass” mindset, which can hinder progress. Nimo’s approach combines cutting-edge technology with a deep understanding of human behaviour, enabling FinTechs to succeed where others fail.