2025 Technology and Hiring Trends Driving the Banking Sector

Joy Henry, Executive Vice President, Americas

The dominant theme for the US economy in 2025 so far is uncertainty. The sweeping changes made by the new US administration have left banks unsure whether to slam the brakes on hiring in preparation for an impending recession, or instead to brace for growth triggered by tax cuts and deregulation. 

Facing unpredictable economic headwinds, banks need to think outside the box to fill skill shortages. Investing in new technologies is one of the main ways banks can create efficiencies and build solid foundations for the future.

To help you increase your organization’s resilience in the face of change, we’ve compiled some of the industry and hiring trends that have impacted the banking sector in the two eventful first quarters of 2025. 

AI and automation are changing the nature of work 

In times of uncertainty, banks invest in the future, with spending in IT forecast to exceed an estimated $1 trillion by 2028 according to Gartner. New technologies are seeing widespread interest and adoption in the banking sector, reducing team sizes in some areas but creating new jobs in others.

Here are some of the innovations currently trending in the banking industry: 

Gen AI: According to Deloitte, 2025 may be the year banks move from experimentation to commercialization concerning their use of generative AI. Gen AI is currently being deployed in various fields including customer service, fraud prevention, data analysis, and more. For example, based on Deloitte’s research, AI engineers who can help financial institutions navigate the shift are highly in demand. 

Quantum computing: This emerging technology takes advantage of the probabilistic calculations enabled by quantum physics in order to exponentially increase the speed of various operations, especially those involving large and unwieldy amounts of data. While still in its early stages, quantum computing is expected to see wider adoption in the coming years. Banking applications are wide-ranging and include portfolio optimization, credit risk score calculation, security encryption, and more. Major financial institutions such as Wells Fargo, JP Morgan, and Citigroup, are investing heavily in this domain, leaving banks that ignore it to potentially play catch-up. Hiring quantum specialists will be essential for banks to stay ahead of the competition in this fast-moving field.

Cryptocurrency: No longer reserved to niche online marketplaces, cryptocurrency is going mainstream, with the Office of the Comptroller of the Currency (OCC) authorizing banks to provide crypto-related services as long as they apply the same risk management practices they would use for traditional assets. Cryptocurrencies are trending among Gen Z and Millennial customers, who stand to benefit from dealing with traditional regulated institutions like banks, to protect their investment. Traditional banks with little experience in crypto may soon need to recruit crypto specialists to fill knowledge gaps, making it essential for banks to work on their employer brand to attract top talent. 

Digital transformation: Many banks are protecting themselves against uncertainty by moving their operations entirely online, which may involve closing their brick-and-mortar branches. Digital transformation, however, requires rethinking the way customers do banking. According to Q2 Holdings, Inc.’s recent Digital Banking Report, AI, improved data analytics, and a personalized customer experience being some of the key ways banks can preserve customers’ trust and loyalty through the transition. 

Physical expansion: That being said, digital transformation is by no means a universal solution. Surprisingly, according to Q2 Holdings, Inc.’s findings, 35% of financial institutions are still planning to expand their branch network, possibly as a way of differentiating themselves from their digital-first competitors and serving demographics that prefer in-person contact, such as older customers. Banks going this route must focus their hiring efforts on finding staff with both top-tier financial qualifications and traditional soft skills. 

Hiring strategies in a skill-driven market  

Technological innovations bring new hiring challenges, but also new opportunities. To stay ahead of the curve and achieve sustainable growth in uncertain times, banks are deploying a wide range of hiring and employment strategies. 

Finding skilled talent: There remains a high demand for financial services professionals worldwide. Qualified talent is particularly sought after in specialized domains, such as gen AI and automation. Providing an outstanding applicant experience helps financial institutions attract top talent and stand out from the competition. To promote success, banks’ background screening and integration processes should be fast, seamless, and user-friendly, giving new hires reasons to stick around long-term. 

Going global: Strategic outsourcing allows banks to look for specialized skills outside of their usual recruitment pools while potentially reducing hiring-related costs. Banks looking to outsource key talent must, however, deal with their own challenges, such as providing international applicants with a localized hiring experience, adapting their screening and onboarding processes to the global market, and complying with local regulations. A trusted screening provider can help banks optimize their global hiring program while managing these challenges.

Reskilling: Instead of hiring externally, some financial institutions are turning to reskilling their existing teams to fill specialized roles. Reskilling helps banks reduce the costs linked to recruiting and to help retain high performers even as the nature of work evolves. Workplace safety and compliance remain essential aspects of this strategy, with monitoring programs helping banks keep track of risk factors linked to their existing workforce. 

In times of change, a partnership with a reliable background screening provider can help bring stability and trust. First Advantage provides banks with tailored identity, screening, onboarding, and monitoring solutions, compliance and industry guidance, and world-class client and applicant experiences.

Contact us today to learn how we can help you evolve and tackle the challenges 2025 continues to bring.