As we step into 2025, the BFSI sector continues to evolve rapidly, driven by technological advancements, shifting consumer expectations, and regulatory transformations. To help you stay ahead of these changes, we are sharing key insights and trends shaping the industry this year, as observed by Vishal Jain, CEO, Manipal Business Solutions.

Let’s delve into the nitty-gritty surrounding BSFI Sector’s 2025 Outlook:

RegTech

In India, by 2025, RegTech will evolve to meet the growing complexity of financial regulations with a strong focus on automation, real-time monitoring, and seamless compliance. As regulations around KYC, anti-money laundering, and data privacy become more intricate, financial institutions will rely on AI, machine learning, and automation to monitor transactions, detect irregularities, and ensure real-time compliance. Integration with initiatives like the Central KYC Registry (CKYCR) and eKYC will streamline the verification process, enhancing both efficiency and customer experience. RegTech will reduce operational costs, improve accuracy, and ensure that institutions can swiftly adapt to evolving regulatory frameworks, fostering a more transparent, secure, and inclusive financial ecosystem in India.

Phygital Banking

In 2024, India’s phygital banking experience made significant strides, combining digital platforms for everyday services with physical touchpoints for more complex tasks that digital solutions couldn’t fully address. In 2025, automation-driven technologies like AI, machine learning, and Business Intelligence will enhance efficiency and personalization, but human interaction will remain crucial for building trust and addressing more complex needs. With 80-95% of retail banking still dependent on physical branches, the human touch remains vital for building relationships and delivering personalized services. As a result, the phygital model will continue to thrive, blending the ease of digital services with the unique value of human connection to create a truly engaging banking experience!

CKYCR

In 2024, the Reserve Bank of India (RBI) introduced significant amendments to strengthen the Central KYC Registry (CKYCR) framework. These changes focus on enhancing the accuracy, efficiency, and security of the KYC process. The amendments streamline the process of data sharing across financial institutions, ensuring better compliance and reducing redundancy. Financial institutions are now required to update KYC data in real-time, making the system more responsive and reducing the chances of errors or fraud. The amendments also push for greater adoption of digital tools like biometrics and AI for secure, automated customer verification. By 2025, these updates will further mature with the integration of advanced technologies, ensuring the secure and transparent sharing of KYC data. The CKYCR framework will continue to play a pivotal role in promoting financial inclusion, supporting the digital transformation of India’s banking sector, and ensuring seamless, secure financial services for all.

About the Author

Vishal holds over 25 years of experience in the financial services industry. He has held prominent leadership positions in fintech, multinational banks, and digital lending organizations, both in India and abroad. Currently, he is leading the growth of Manipal Business Solutions (MBS) by driving business strategies to expand the business correspondent network, grow doorstep banking initiatives that include KYC services, and working closely with leading banks to make financial solutions more accessible to the last mile. His vision is to make MBS the most preferred and trusted fintech company in India.