Cloud

9 banking, insurance and healthcare tech trends to know about for 2025

Article Dec 9, 2024 Read time: 1 min

 

Technology is continuing to transform businesses across various industries, leading to changes in operations, customer interactions and overall organizational strategies.

The pace of change is accelerating in banking, insurance and healthcare. CIOs and IT leaders must explore ways to tackle everything from enhancing cybersecurity by modernizing their infrastructure with cloud computing and artificial intelligence (AI) to streamlining compliance processes and offering personalized customer experiences. 

Industries must continuously evolve to stay competitive and ready for the future. That involves embracing IT modernization, refining market positioning and adeptly navigating the uncertainties ahead. Adopting technological, operational and cultural changes will be crucial for these industries to deliver impactful results and maintain their edge in a rapidly evolving business landscape.

In the second installment of our industry predictions for 2025, we delve into nine pivotal IT trends that banking, insurance and healthcare companies must master to stay ahead of the competition.

 

 

Industry:
Banking


Banking is fundamentally about trust. However, the financial services industry has had to evolve. This transformation is driven by the rapid adoption of digital transactions, real-time transfers and cross-border payments, which have become essential in today’s fast-paced financial environment. 

“Today, hyper-convenient banking services are essential to winning and keeping customers. People want to use banking apps when, how and wherever they choose,” said Robert Turner, Senior Vice President and General Manager of U.S. Financial Services at Kyndryl. “It’s up to banking leaders to provide the easy and immediate access that will make them competitive players in a fast-changing digital landscape.”

Financial services companies have been at the forefront of testing and implementing new technologies, from cloud migration to the early use of AI in capital markets. However, the banking industry’s reliance on legacy platforms can hinder innovation. In 2025, financial services companies will likely renew their focus on technology investments, modernizing costly environments burdened with technical debt to stay competitive with fast-moving fintechs and neobanks, digital-only banks. To that end, banks will continue to explore how AI technologies can bolster data security and help achieve regulatory compliance. In addition, investments in cloud and edge computing will be crucial to managing costs and technological complexity.

Key industry trends

01
Enterprises will focus on refining and simplifying payment applications to promote integration, reduce costs and improve the user experience.
02
The consolidation of independent payment applications will drive significant innovation and operational efficiencies across the industry.
03
Firms in the banking, payments and capital markets space will leverage AI for cybersecurity, regulatory compliance, fraud detection and consumer data protection.
The readiness paradox

91%

of banking and financial leaders are confident that their IT infrastructure is best-in-class

45%

of banking and financial leaders are concerned their IT tools or processes are outdated or close to end-of-life

41%

report that their IT infrastructure is completely ready to manage future risks, which is higher than the overall average of 39%

 

Industry:
Insurance


The insurance industry faces significant challenges as economic pressures like inflation and supply chain disruptions have increased the costs of auto, property and other claims. The higher premiums have left many consumers and businesses wondering if they can still afford insurance. Particularly in disaster-prone areas, the frequency and severity of climate-change-driven events have led to substantial insured losses and higher premiums and reinsurance costs.

Will the insurance industry be able to navigate these challenges in the face of macroeconomic headwinds? While 64% of insurance leaders are concerned about environmental and climate disruptions, only 26% feel prepared. They see upgrading enterprise IT as an important way to mitigate risk, but 68% struggle to keep up with technological advancements. Integrating AI and digital platforms is transforming operations, enhancing efficiency and improving the customer experience. However, balancing innovation with risk mitigation remains complex.

“With AI assisting in the processing of insurance claims, the industry aims to get to a point where an adjuster validates what an AI-powered model shows them,” said Tom Scheel, U.S. Insurance and Global Insurance Guild Leader at Kyndryl. “That leads to less fine-tuning, fewer calls to the service desk and faster service.”

Key industry trends

04
Insurance companies will invest in end-to-end solutions made possible by AI and machine learning to improve first-notice-of-loss claims, reducing processing time and enhancing fraud detection.
05
To become more customer-centric, insurers will recruit senior leaders from industries with strong customer experience records, aiming to adopt faster and more flexible business models.
06
Insurers will collaborate with technology partners to leverage data for better prediction and pricing of intense weather events, with a focus on generative AI investments.
The readiness paradox

94%

of leaders in the insurance sector are confident that their IT infrastructure is best-in-class

56%

of insurance leaders are concerned that their IT tools or processes are outdated or close to end-of-life

39%

believe their IT infrastructure is completely ready to manage future risks

 

Industry:
Healthcare


In the healthcare industry, organizations are rapidly adopting new technologies to improve patient, provider and caregiver experiences. Investments in AI-powered tools like ambient listening and diagnostic imaging aim to boost efficiency while enhancing care. But labor shortages, aging populations and financial pressures are challenging the healthcare sector. And even though the industry has become more resilient post-pandemic, healthcare leaders struggle with the pace of technological advancements and the costly IT modernization of outdated systems.

In the coming year, embracing technological, operational and cultural changes will be crucial for delivering impactful results. Technology leaders must balance cybersecurity and financial recovery with cost-driven delays in IT modernization. “Traditional approaches to technical leadership won’t be enough to achieve the 360-degree approach to digital healthcare that today’s consumers demand,” said Trent Sanders, Vice President of Healthcare at Kyndryl. “To overcome multiplying challenges in a fast-changing market landscape, technology leaders must operate as business leaders first — executives armed with compelling data who are focused on accomplishing the most critical business goals.”

Key industry trends

07
CIOs in healthcare systems will start thinking more like CFOs to break down organizational silos, accelerate transformation and achieve business results.
08
Driven by educational training and cultural transformation, generative AI will become a core component of the modern healthcare workplace, claims processing, EHR processes and medical research.
09
Leaders of healthcare organizations will explore new ways to simplify their platforms and drive long-term investments in systems that support clinical workflows, collaboration and enterprise resource planning.
The readiness paradox

92%

of healthcare leaders are confident that their IT infrastructure is best-in-class

62%

of healthcare leaders are concerned that their IT tools or processes are outdated or close to end-of-life

36%

believe their IT infrastructure is completely ready to manage future risks

 

For additional insights, read our in-depth IT predictions for the banking, insurance and healthcare industries, as well as 11 trends energy and utilities, telecommunications and manufacturing companies must navigate in 2025.

Topics
Cloud
Data and AI
Security and resiliency
Related Industries
Banking and Financial Markets
Insurance
Healthcare

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