Wipfli, a prominent advisory and accounting firm ranked among the top 25, has released the results of two industry surveys focused on the banking and credit union sectors. These surveys offer valuable insights into the current market challenges and outline strategies for long-term growth. According to the extensive data gathered, leaders from surveyed financial institutions highlight ongoing challenges such as cybersecurity, labor shortages, and the maturity of digital transformation as key factors shaping their strategies and priorities for 2025.
“This year’s findings underscore an industry at a critical juncture — embracing AI and digital transformation while navigating persistent challenges like cybersecurity and talent shortages,” said Anna Kooi, Wipfli’s financial services practice leader. “Financial institutions that stay focused on strategic goals and leverage data-driven insights are best positioned to lead the way.”
Financial institutions are feeling optimistic this year, with 58% expecting asset growth of 5% or more—up from just 36% last year. At the same time, banks are broadening their range of services to fend off competition, attract new customers, and capture the attention of Gen Z as they start to inherit substantial wealth.
Banks have shown strong strategic focus, emphasizing increased investment in cybersecurity and gaining momentum in Banking-as-a-Service and embedded banking. However, many financial institutions also express concerns that factors such as net interest margin compression, challenges in core deposit growth, and the evolving economic and regulatory landscape could hinder their continued growth and efforts to expand market share.
“It’s critical for banks to integrate their data tools strategically and intentionally,” Kooi said. “With shrinking margins, most mid-market banks can’t afford costly mistakes from siloed technology decisions. Investing in scalable, pragmatic technology architecture is essential.”
Credit union leaders are becoming increasingly confident and are anticipating growth over the next year as they actively compete to attract and retain members. More than half of the surveyed credit unions plan to boost their investments in cybersecurity, especially given that 49% reported a rise in fraud during 2024, with 76% experiencing unauthorized access to their networks or data in the last year.
However, despite recognizing its importance, only half of the credit unions surveyed believe they have achieved a mature level of digital transformation concerning customer experience and engagement. Leaders outlined challenges such as integrating with existing systems and concerns related to data security and cybersecurity as significant hurdles to fully realizing digital maturity.
