In a world increasingly shaped by digital innovations, shifting consumer expectations, and complex regulatory demands, 2025 is a transformative year for banking. As global economies face persistent inflation and interest rate pressures, banks adapt swiftly to meet challenges and opportunities. The journey from traditional banking to a fully digital experience has never been more compelling, with 2025 bringing new milestones that redefine how institutions operate, grow, and engage with customers. In this article, we explore the latest statistics, trends, and crucial developments shaping the global banking sector in 2025.
Editor’s Choice: Key Banking Milestones
- Global bank revenues rose by 6.3% in 2025, reaching $8.5 trillion, fueled by AI adoption and continued digital banking growth.
- The U.S. Federal Reserve raised rates for the fourth time, setting the benchmark rate at 5.75%, further tightening credit and loan conditions.
- ESG financing hit a new high with $365 billion in green loans and sustainable bonds issued globally, showing a 21.6% year-over-year increase.
- Digital wallet transactions globally exceeded $3.1 trillion in 2025, reflecting a 24% surge driven by mobile-first banking trends.
- Cybersecurity spending by banks increased 31% in 2025, with global financial institutions investing heavily in AI-powered threat detection.
- Fintech-bank collaborations reached a record, with 76% of major banks partnering with at least one fintech to innovate faster and enhance CX.
- The global unbanked population declined to 1.26 billion, thanks to expanded mobile banking access in underserved regions.
How Many People in the US Are Using Digital Banking from 2021 to 2025
- The number of digital banking users in the US reached 196.8 million in 2021, highlighting strong early adoption of online banking services.
- By 2022, the user base increased to 203 million, marking a growth of 6.2 million users year-over-year.
- In 2023, users rose further to 208 million, reflecting continued momentum and a rise of 5 million users from the previous year.
- The figure climbed to 212.8 million in 2024, showing that nearly 13% growth occurred over just three years.
- Projections for 2025 place the user count at 216.8 million, indicating a total increase of 20 million users from 2021 to 2025.
Global Economic Challenges and Banking Sector Impact
- Global inflation averaged 5.4% in 2025, easing slightly but still straining household savings and credit access, especially in emerging economies.
- The European Central Bank (ECB) raised its deposit rate to 3.5%, its highest level since 2001, to combat persistent Eurozone inflation.
- In the U.S., higher rates triggered a 12% drop in mortgage originations, reflecting tighter housing affordability amid sustained rate hikes.
- Global banking assets grew by 4.1% to $182 trillion, with cautious lending strategies amid geopolitical tensions and market volatility.
- Corporate loan defaults increased by 2.7%, heavily affecting SMEs due to elevated interest burdens and stricter lending standards.
- Bank compliance costs rose by 14% in 2025, driven by enhanced AML enforcement, data governance, and ESG disclosure mandates.
- Developing markets recorded 6.8% banking sector growth, fueled by rapid mobile banking uptake and financial access initiatives.
Peer Group Comparisons
- Top U.S. banks, including JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo, now hold a combined $11.5 trillion in assets.
- European giants like BNP Paribas, HSBC, and Deutsche Bank manage a total of €8.9 trillion in assets, narrowing the gap with U.S. peers.
- Chinese banks led by ICBC and China Construction Bank now control a dominant $18.8 trillion in assets, solidifying China’s lead.
- Japan’s top three banks—Mitsubishi UFJ, Sumitomo Mitsui, and Mizuho—have grown their combined assets to $6.5 trillion in 2025.
- Nubank leads Latin America’s digital banking with 92 million users, while Revolut surpasses 35 million customers in Europe.
- Canada’s Big Five banks hold a robust $4.6 trillion in assets, maintaining low default rates and stable credit quality.
- U.S. retail banking remains competitive, with Wells Fargo holding the top spot with 10.3% of all retail deposits in 2025.
Deposit Market Share Reports
- U.S. bank deposit growth slowed further to 1.4% in 2025, as high interest rates pushed consumers toward higher-yield investments.
- Chinese commercial banks maintained dominance with 22.7% of global deposits, driven by stable savings behavior and a resilient economy.
- Digital-only banks captured 6.2% of new U.S. deposits, showing rising consumer confidence in digital-first banking platforms.
- Household deposits in the EU climbed to €11.7 trillion, a 3.5% increase, as savers continued to hedge against economic volatility.
- Savings deposits in India grew by 7.4% year-over-year, fueled by UPI-linked accounts and ongoing financial literacy efforts.
- Brazilian banks saw deposit growth hit 13.1%, backed by attractive interest rates and broader economic stabilization.
- Youth savings accounts globally recorded a 5.2% rise in deposits, led by Gen Z adoption of mobile-first and gamified banking apps.
Retail Banking and Traditional Banking Trends
- The U.S. branch closure rate hit a new high with 2,800 branches closed in 2025, as digital banking continues to replace physical locations
- Customer satisfaction with traditional banks remained strong at 84.6%, supported by ongoing investment in digital services and in-person experience
- Retail loan originations rose by 4.7%, driven by demand for personal and auto loans amid modest wage growth and job stability
- Mobile banking adoption reached a record 81% of U.S. bank customers, reflecting a preference for app-based daily transactions
- Mortgage lending at traditional banks declined by 8.9%, as high interest rates continued to cool the housing market
- Customer retention rates stayed robust at 91.8%, despite competition from fintech platforms and neobanks
- Credit card usage increased by 13.5%, fueled by expanded digital onboarding, instant approvals, and cashback-driven loyalty programs
Which Age Groups Prefer Online vs Mobile Banking?
- Ages 15–24 show a clear mobile-first trend, with 74.1% using mobile banking and just 6.3% using online banking.
- Among ages 25–34, 69.4% prefer mobile banking, while 12.9% stick to online banking.
- For ages 35–44, usage shifts slightly, with 60.5% favoring mobile and 18.4% using online banking.
- The 45–54 age group has 49.1% mobile users and a rising 22.8% using online platforms.
- In ages 55–64, only 33.2% use mobile, while 27.3% prefer online banking, indicating a more balanced usage.
- Users aged 65+ flip the trend, with 28.2% using online banking and just 15.3% using mobile banking.
Summary of Deposits and Historical Bank Data
- Global commercial bank deposits reached $87.6 trillion in 2025, up from $75 trillion five years ago, continuing a steady long-term growth trend.
- U.S. commercial bank deposits climbed to $19.8 trillion, showing resilience despite monetary tightening and inflation pressures.
- The average global deposit interest rate rose to 2.9% in 2025, driven by continued central bank rate hikes across major economies.
- Fixed-term deposits surged by 11.2% year-over-year, as savers locked in higher interest returns in a volatile rate environment.
- Savings rates in developed countries declined further to 5.1%, reflecting higher living costs and reduced disposable income.
- Deposits in emerging markets grew by an average of 8.7%, led by expanding digital banking access and inclusion initiatives.
- Corporate deposits now account for 41.3% of global deposits, signaling increased liquidity buffers amid persistent market uncertainty.
Traditional Banking vs. Digital Banking
- Traditional banks still command the largest market share, holding approximately 75% of total global assets, while digital banks hold 10%.
- Customer acquisition costs for digital banks average $30 per customer, significantly lower than the $150 per customer for traditional banks.
- Account opening times in digital banks average 5 minutes, contrasting sharply with traditional banks’ average of 30-40 minutes.
- Loan approval rates are higher in traditional banks, with 87% of applications approved, compared to 70% in digital banks, primarily due to risk aversion in digital lending.
- Digital banks have reported a 12% year-over-year growth in customer numbers, outpacing traditional banks, which grew by 4% in the same period.
- Hybrid banking models—a blend of digital and branch services—are being adopted by 68% of traditional banks to stay competitive.
- Customer satisfaction is higher among digital bank users, with 92% satisfaction compared to 85% for traditional banks, attributed to convenience and mobile-first approaches.
How Fast Is the Open Banking Market Growing Globally
- The global open banking market is projected to grow from $30.89 billion in 2024 to $94.14 billion by 2029, with a strong CAGR of 24.8%.
- In 2025, the market is expected to hit $38.86 billion, showing a solid upward trajectory.
- This rapid expansion reflects increased adoption of API-driven financial services and demand for data-driven banking ecosystems.
The market size is expected to more than triple within just five years, underlining a major fintech transformation.
OECD and BIS Banking Statistics
- Bank profitability across OECD nations rose by 4.2% in 2025, supported by widened interest margins and further operational streamlining.
- Non-performing loans (NPLs) in OECD banks held steady at 2.8%, indicating continued strong credit quality and risk controls.
- The BIS reported global bank lending grew to $56.4 trillion, marking a 2.5% year-over-year increase, led by emerging market demand.
- Cross-border banking flows in OECD countries expanded by 5.6%, driven by resilient trade and active capital investment in Asia and the Americas.
- Digital payment volumes globally surged by 15.3%, as adoption of contactless and real-time payments accelerated across all regions.
- OECD banking assets rose to $86.1 trillion, with the U.S., Japan, and France contributing nearly 49% of global banking totals.
- Capital adequacy ratios for OECD banks averaged 15.7%, remaining well above the Basel III minimum standards.
Regulatory and Compliance Changes
- Basel III reforms are now fully adopted, with over 95% of global banks meeting or exceeding the 10.8% minimum capital adequacy ratio.
- The U.S. Federal Reserve expanded stress testing rules for banks holding over $100 billion, integrating climate risk and geopolitical scenarios.
- AML compliance costs reached $192 billion globally, as banks ramp up investment in AI-driven fraud detection and regulatory tech.
- EU data regulations intensified with full enforcement of the Data Governance Act and AI Act, reshaping data handling and transparency standards.
- Climate risk assessments are now mandatory in 46% of OECD countries, requiring banks to model climate impact on loan books and assets.
- The CFPB issued new 2025 rules demanding clearer loan disclosures and fee transparency, reshaping credit card and lending marketing.
- Digital KYC investments rose, with 35% of banks reporting major upgrades to biometric and AI-powered onboarding systems.
Recent Developments in the Banking Industry
- Blockchain adoption reached 45% of global banks, driving faster payment processing and reducing costs by an estimated $12 billion annually.
- Global fintech funding hit $118 billion in 2025, reflecting an 11% year-over-year increase as bank–fintech partnerships continue to expand.
- Embedded finance now features in 24% of major banks, integrating services into e-commerce, ride-sharing, and social media platforms.
- AI adoption in banking rose to 41%, with banks leveraging it for real-time fraud detection, predictive analytics, and 24/7 virtual assistants.
- Loan repayment delays increased by 7.3%, with higher delinquencies among millennial and Gen Z borrowers affected by rate pressures.
- Central bank digital currency (CBDC) pilots are active in 76 countries, signaling growing momentum toward national digital currency rollouts.
- Real-time payment systems expanded to 94 countries, with adoption surging due to demand for instant, 24/7 fund transfers.
Conclusion
As 2025 progresses, the banking sector continues to evolve at an unprecedented pace, shaped by regulatory reforms, technological advancements, and growing societal expectations around sustainability. The shift toward digital-first banking is irreversible, with banks worldwide investing heavily in innovation to meet customer demands for faster, safer, and more convenient services. At the same time, traditional banks are reimagining their role, blending digital advancements with in-branch experiences to retain and attract customers. From ESG commitments to blockchain integrations, the industry’s priorities reflect a balance between profit and purpose. These trends and statistics not only highlight the resilience of the banking sector but also underscore its critical role in the future of finance, providing a blueprint for the challenges and opportunities that lie ahead.
