Deloitte Releases 2025 Financial Services Industry Predictions Report

Disruptive forces including evolving market dynamics and technology advancement may reshape banking and capital markets, investment management, insurance, and commercial real estate by 2030

NEW YORK, April 24, 2025 /PRNewswire/ -- Deloitte today released its "2025 Financial Services Industry Predictions" series, which outlines some of the most significant emerging trends across the financial services industry over the next three to five years. These insights provide a glimpse into the future, focusing on the potential impact of new technology adoption, evolving business models, and emerging investment opportunities.

Deloitte is predicting shifts across the financial services industry, as providers adapt to evolving customer behavior and demands. Doubling down on customer-centricity and scaling advanced technologies could help financial services firms innovate and be poised for transformational growth.

"The rapid advancement of technology and evolving market dynamics are creating unprecedented opportunities across the financial services industry," said Jim Eckenrode, executive director of the Deloitte Center for Financial Services. "Companies that embrace these changes and innovate will likely be well-positioned to thrive in the coming decade. Our predictions highlight the importance of being proactive and forward-thinking in adapting to these transformative trends."

Highlights of Deloitte's 2025 Financial Services Industry Predictions include:

• Deloitte Predicts Exponential Growth in Retail Investors' Private Capital Allocations: Deloitte predicts an increase in retail investors' allocations to private capital by 2030. In the U.S., these investments are expected to grow from US$80 billion to US$2.4 trillion. This growth may be driven by expanding product offerings and regulatory changes that make private capital more accessible to retail investors. The trend suggests that investment managers are increasingly recognizing the untapped potential of retail investors, leading to a significant rise in private capital allocations over the next decade.
  
  
• Transforming Cross-Border Payments with Tokenization: Deloitte forecasts that by 2030, one in four large-value international money transfers will be settled on tokenized currency platforms. This could reduce the cost of corporate cross-border transactions by 12.5%, potentially saving businesses more than US$50 billion. Tokenized currencies, including stablecoins and digital cash instruments, could allow faster, more secure, and cost-effective transactions, and can transform the way banks and businesses handle international payments.
  
  
• Insurance Industry Expected to Embrace Predict and Prevent Models: The insurance sector is expected to see a growth in the adoption of fee-based risk management services. By 2030, Deloitte predicts that U.S. property and casualty insurers could see their fee-based revenues grow from US$21.6 billion in 2023 to US$49.5 billion. It's likely that insurers will increasingly offer services that can help customers prevent losses before they occur, leveraging advancements in technology such as smart home devices and generative AI. This proactive approach could not only enhance customer resilience but also create new revenue streams for insurers.
  
  
• Real Estate Investment Likely to Shift to Alternative Properties: The commercial real estate landscape is expected to see a significant investor shift toward alternative property types. Deloitte forecasts that by 2034, nearly 70% of industry portfolio values will be comprised of alternative properties such as data centers, cell towers, life sciences, health care facilities, and senior housing. This would mark a substantial increase from just over 40% today.
  
  
• Investment Managers Could Unlock a $11 Trillion Market Opportunity Through Active ETF Growth: Deloitte estimates that assets under management for active exchange-traded funds (ETFs) in the U.S. will grow from US$856 billion in 2024 to US$11 trillion by 2035 – a 13x increase. This increase is expected to be driven by investors shifting from mutual funds to active ETFs, which can offer transparency, flexibility, and lower costs.
  
  
• Real Estate Tokenization Expected to Transform Asset Management: Deloitte predicts that the global market for tokenized real estate will expand, reaching US$4 trillion by 2035, up from less than US$300 billion in 2024. This growth is expected to be driven by the adoption of blockchain technology, which enables the fractional ownership of real estate assets. Tokenization could open new avenues for real estate investment, overcoming challenges related to operational inefficiency and high administrative costs.
  
  
• AI Could Revolutionize Software Engineering in Banking: Deloitte predicts that AI tools are set to revolutionize software engineering in the banking industry, potentially reducing software investment costs by 20% to 40% by 2028. Banks that effectively deploy AI tools across the software development life cycle could realize cost savings of up to US$1.1 million per engineer.
  
  
• AI Can Help Fight Insurance Fraud: Deloitte predicts that, by implementing AI-driven technologies across the insurance claims life cycle and integrating real-time analysis from multiple modalities, property and casualty insurers could reduce fraudulent claims and save between US$80 billion and US$160 billion by 2032.

About Deloitte
Deloitte provides industry-leading audit, consulting, tax and advisory services to many of the world's most admired brands, including nearly 90% of the Fortune 500® and more than 8,500 U.S.-based private companies. At Deloitte, we strive to live our purpose of making an impact that matters for our people, clients, and communities. We leverage our unique blend of business acumen, command of technology, and strategic technology alliances to advise our clients across industries as they build their future. Deloitte is proud to be part of the largest global professional services network serving our clients in the markets that are most important to them. Bringing 180 years of service, our network of member firms spans more than 150 countries and territories. Learn how Deloitte's approximately 460,000 people worldwide connect for impact at www.deloitte.com.

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SOURCE Deloitte