What’s shaping financial services right now?

The financial services landscape is undergoing a transformation – driven by changing customer behaviours, technological advances and evolving strategic priorities. While some challenges are constants, others are rapidly emerging.

In this video, Elixirr Partners Tej Patel and Bob Skinstad share a perspective from the frontlines: what’s top of mind for financial services leaders today and what’s shaping the future. 

Risk and regulation remain non-negotiables 

Even without waves of new regulation, compliance remains a critical focus. Enforcement actions and penalties continue, a reminder that governance failures have real consequences. 

The bottom line? Regardless of deregulation chatter, protecting customers and markets must remain the north star for any financial institution. 

Cost discipline as a strategic foundation 

In volatile markets, cost control often becomes reactive. But leading firms embed it as a long-term capability – treating cost discipline as a foundation for transformation, not just a lever for margin defence. 

Growth, redefined: Organic and M&A 

Customer expectations are rising and loyalty is declining. Institutions that deeply understand and serve their existing base are best positioned for sustainable organic growth. 

At the same time, M&A activity is rising again. Following economic uncertainty in 2023, deal activity increased by around 35% in 2024 – although volumes remain below historic levels. For regional banks, M&A presents an opportunity to enter growth markets and acquire capabilities, as seen in SouthState’s acquisition of Independent Bank and Valley National’s acquisition of Leumi. 

To deliver value, regional banks must clarify their M&A goals and assess where inorganic growth can fill capability gaps. 

Technology isn’t optional, it’s foundational 

Legacy infrastructure continues to hold many institutions back. Cloud computing and AI are no longer optional add-ons, they are baseline enablers for scale, speed and insight. 

Cloud adoption is accelerating, with Software, Platform and Infrastructure as a Service models offering flexibility, cost efficiency and stronger integration with fintech partners. For regional banks, hybrid cloud can provide a path forward that balances innovation with compliance. 

On AI, regional banks have a real opportunity to lead. With 81% of banking CEOs naming GenAI a top priority, the focus is shifting from simple automation to broader impact, including enhanced customer experiences and better decision-making. Success will require strong data management, mature architecture and AI literacy across the business. 

Understanding a new generation of customers 

Gen Z and Gen Alpha are reshaping what customers expect from financial institutions. These digital natives expect seamless, mobile-first, AI-powered experiences and they’re not afraid to move to get them. 

By 2025, around 40% of banking customers will hold digital-only accounts, up from 24% in 2023. Fintechs are setting the pace, but regional banks – with the agility to adapt quickly – are well placed to compete. 

Meeting these expectations will require more than new channels. Banks must redesign journeys, elevate digital experience and use data to personalise at scale while aligning products and engagement with evolving life milestones. 

We help banks navigate these shifts 

Whether modernising legacy systems, defining digital growth strategies or embedding AI responsibly, we work with financial institutions to align ambition with execution. The future of banking is shaped by those who think differently.