Mercury—a fintech that serves startups, VC firms, and small businesses with banking products and services—announced $650 million in annualized revenue for 2025, up 30% from 2024’s year-end $500 million. Some banks have invested heavily in digital for business customers, betting that more sophisticated self-service will support market share growth. These investments mean that the business digital experience is increasingly a differentiator between banks. But it’s a half measure. This approach to growth is fighting the last war to avoid irrelevance—by catching up to where competitors are today.
Seventy percent of banking leaders believe agentic AI will “have a significant or game-changing impact on the banking industry,” according to an American Banker survey commissioned by SoundHound AI. For banks to move agentic AI tools from the pilot stage to wide rollouts, they’ll need a business case, a strategic roadmap, and a plan to promptly address tactical issues. Must-haves include strong AI governance, a modern data layer that unifies access to siloed business information, and a framework for customer trust.
Mark Cuban’s online pharmacy, Cost Plus Drug Company, signed a deal to sell a biosimilar version of Johnson & Johnson’s drug Stelara at a price far below the brand-name list price and lower than competing biosimilars. Starjemza isn’t Cost Plus’ first move into biosimilars, but the drug’s steep discount compared to other Stelara competitors could pose a real challenge to typical pharmacy benefit manager pricing negotiations.
U.S. Bank launched the Split World Mastercard, a credit card that puts every transaction on an installment plan, per a press release.U.S. Bank wants to capitalize on consumer demand for both card-linked installments and BNPL cards. It’s a play specifically for Gen Zers, who tend to gravitate toward installments. These younger consumers can also use the card as a credit-building tool, a sought-after feature. But the Split Card may be a tough sell to prospects.
At Bank of America’s (BofA) investor day, its first in over a decade, the bank said it spent more than $118 billion on technology in the last 10 years. In 2025, its annual spending on new technology initiatives will reach $4 billion out of a total of $12.7 billion. In the AI race, banks that aren’t already ahead will fall even further behind. Increasingly sophisticated automation as well as an AI-assisted jump in employee productivity mean AI investments quickly compound on themselves. Last month, JPMorgan said it had already broken even on its $2 billion AI investments.
Dave reported $150.8 million in revenue in Q3 2025, up 63% YoY, and a net income of $92 million. The neobank reported 843,000 new members, a 25% increase in debit card spend to $510 million, short-term advance loan originations of $2 billion, and a customer acquisition cost (CAC) of $19. Neobanks’ original positioning as scrappy underdogs fighting the good fight against banks has transformed. It is now a story about how neobanks carved out a new niche catering to underserved customers, mostly competing with other neobanks.
Worldwide Gen Z interns at Goldman Sachs favor no AI over AI-only assistance across most categories, with 54% rejecting AI altogether in creative work, according to an August Goldman Sachs survey.
Robinhood will offer Gold members mortgage rates at least 0.75 percentage points “below the national average” and a $500 credit toward closing costs through a partnership with Sage Home Loans. Robinhood has grown from a single product (fee-free stock trading) into a universe of retail financial services that compete with directly with traditional financial institutions, require that it partner with them for licensed banking products and services, and supersede what traditional banks offer. Instead of being a scrappy upstart, it’s changing how consumers perceive financial products and services.
Holiday shoppers are stressed and overwhelmed, per Accenture’s 19th Annual Holiday Shopping Survey. And this is leading to lower conversion rates: 85% of consumers are likely to abandon their carts due to frustration or indecision, according to the survey. To best meet customer needs quickly, retailers can partner with providers like Checkout.com on its one-click checkout solution Flow Remember Me or PayPal-owned Honey as it integrates AI-powered product recommendations based on users’ conversations with chatbots.
United Airlines rolled out the MileagePlus Debit Rewards Card in partnership with Sofi-owned Galileo, per a press release. The debit card is issued by Sunrise Banks and runs on the Visa network. United’s debit card may appeal to younger United customers who are early in their financial lives and are skeptical of credit cards. But for others, it may be a tough sell as loyal travelers could instead get the United Gateway credit card, which has no annual fee and stronger rewards.
The Independent Community Bankers of America (ICBA) urged the Office of the Comptroller of the Currency (OCC) to reject Coinbase’s application for a national trust charter, arguing that the application has “serious deficiencies.” The Trump administration’s crypto friendliness is a threat to banks as much as regulatory leniency and stablecoin clarity is a relief: A trust charter confers legitimacy on a crypto firm, but it doesn’t require deposit insurance. These standards may enable crypto companies to compete more vigorously with traditional institutions.
U.S. Bank and investment advisory firm Edward Jones announced co-branded checking account and credit card products, which will be distributed to Edward Jones clients through its advisors. The co-branded offering consolidates investment and banking products into a single digital experience. The U.S. Bank–Edward Jones partnership is just one approach that banks can take to capitalize on the Great Wealth Transfer and cross-sell between investment and retail banking products and services. With the mass-affluent segment in mind, banks can use partnerships to attract customers they might not otherwise reach for basic banking products, like deposit accounts and credit cards.
66% of US banking executives say their leadership team or board has discussed allocating budget or resources to AI, more than triple the share for any other emerging tech, according to July data from Bank Director and Jack Henry & Associates.
Nationwide Financial announced a $1.5 billion investment in technology through 2028, including $300 million for AI initiatives. The company aims to simplify business interactions and advance its data protection capabilities. A massive technical overhaul is a strategic choice and a yearslong commitment sponsored by the C-suite and endorsed by the board of directors. AI is a tool rather than a strategy. And without intent, telematics, analytics, automation, and copilots are just words.
Ascend Federal Credit Union launched a debit card-linked installment offering through a partnership with equipifi, per a press release. It’s difficult for credit unions like Ascend to compete with the top issuers on credit card programs. They lack the necessary funds and resources to launch expansive credit card rewards offerings. But they have a better chance of competing for customers’ business when it comes to debit cards. Offering perks like card-linked installments can set their programs apart and draw in customers who are looking for more flexible financing options without applying for a new credit card.
Southwest Airlines rolled out a rewards debit card, per a press release. The Southwest Airlines Rapid Rewards Debit Card runs on Visa’s network and is issued by Sunrise Bank in partnership with SoFi-owned Galileo’s card issuing platform. Offering a debit card helps Southwest tie customers closer to its loyalty program. But getting consumers to sign up may be a tough sell. Consumers who don’t have the credit scores or means to pay for a Southwest credit card may balk at parking $2,500 a checking account.
Many consumers are opening new bank, credit card, and investment accounts and migrating some financial activities instead of switching entirely, per a J.D. Power study. Chime and SoFi led with conversion rates, and about half of Chime customers are primary, far exceeding large incumbents. FIs should carefully reconsider their approach to efficient customer acquisition and retention. Consumers may appear unwilling to make a clean break with their bank, but they try products offered by other institutions and slowly slip away if they like what they see.
JPMorgan Chase will launch a digital-only retail bank in Germany in 2026. And Santander revealed that its US digital-only retail bank, Openbank, attracted over $6 billion in deposits in its first year. For a traditional bank, running a digital-only bank is a strategic choice rather than the side project it may seem. Rebuilding the technology stack and experience from the ground up fosters necessary digital transformation and enables business growth in new markets. To break out of a mold, bankers should think big about their options: A small subsidiary built from scratch can reshape the business.
The branch is key to consumers’ choice of primary bank, but banks overall fall short of a compelling customer experience, according to a recent study from Adrenaline. Delivering a seamless, modern branch experience means breaking down silos between teams across digital, ATM, call center, and in-person channels. With customers expecting frictionless interactions, the old compartmentalized approach won’t work anymore. Branches need to offer pared down, basic services that are traditionally expected combined with consistent, high-touch interactions that dovetail with digital services.
Wealthtech funding for 2025 is set to double last year’s figure and has already hit $4.2 billion as of September, according to a CB Insights report. And based on year-over-year hiring, three of the top five fastest-growing fintech segments fall under wealthtech. In our September 2025 report “Winning the Great Wealth Transfer in Wealth Management,” we noted that banks face three key considerations in competing against wealth techs: How to blend self-service and human connection, how to personalize services, and what investment vehicles to offer.