Physical Security in 2025: Key trends and strategies for financial institutions

Financial institutions are facing an increasingly complex security landscape. Sophisticated physical breaches, such as ATM tampering and branch break-ins, are on the rise, while insider threats and fraud continue to erode trust and safety.

At the same time, advancements in technology are transforming how financial institutions protect their assets, employees, and customers. A proactive, technology-driven approach is essential to safeguard operations while addressing these emerging risks.

In this article, we explore the key trends shaping physical security in 2025 and provide actionable insights to help financial institutions security teams strengthen their operations.

Financial security challenges

Financial institutions are dealing with a growing array of risks, combining traditional physical threats with more advanced methods. ATM skimming, branch break-ins, and organized fraud are on the rise, putting immense pressure on security teams.

According to the FBI’s Bank Crime Statistics for 2023, there were 1,500 reported bank robberies nationwide, resulting in nearly $27 million in stolen funds. But it’s not just external threats that financial institutions must address. Insider fraud, gaps in access control, and outdated infrastructure create vulnerabilities that further complicate security management. Some of the most pressing challenges include:

• Slow adaptation: Legacy security systems are often outdated, making it difficult for financial institutions to respond quickly to evolving threats.
• Rising costs: Security upgrades and maintenance are becoming more expensive, stretching already tight budgets.
• Operational strain: Managing security systems across multiple branches, ATMs, and offices requires expertise and resources that many institutions struggle to maintain.

To thrive in this environment, financial institutions must adopt forward-thinking strategies that prioritize proactive risk management and operational efficiency.

Technological trends shaping financial security for 2025

The future of physical security in financial institutions lies at the intersection of technology and strategy. Innovations such as AI, cloud-based platforms, and advanced access control systems are transforming how banks and financial institutions secure their spaces.

Equally important is lifecycle management, a once-overlooked aspect of security that has become indispensable. With complex systems spread across multiple locations, proactive tracking, maintenance, and upgrades are key to minimizing vulnerabilities and maximizing performance.

Here are the key technologies driving change in 2025:

AI-driven video analytics

Gone are the days of relying on static footage. AI-powered surveillance systems are revolutionizing video monitoring, detecting suspicious activity in real-time and even predicting potential risks.

Examples of AI applications for financial institutions include:

• Identifying unusual behavior in ATM vestibules, such as individuals tampering with machines.
• Recognizing patterns of potential insider threats, such as unauthorized access to restricted areas.
• Monitoring high-risk areas like vaults and cash-handling zones for unusual activity.

Cloud-based security and remote monitoring

Cloud technology is streamlining operations across financial institutions. With centralized, remote access, security teams can monitor multiple branches and ATMs in real-time, enabling faster responses to incidents.

Applications of cloud-based solutions include:

• Video surveillance: Remote monitoring and secure storage of footage across all branches and ATMs.
• Access control: Centralized management of permissions, allowing institutions to restrict or grant access in real time.
• Intrusion detection: Cloud-connected alarm systems that deliver instant alerts during unauthorized access attempts.
• Lifecycle management: Tools to track, upgrade, and maintain all physical security assets from one platform, minimizing downtime and inefficiencies.

h3-SiteOwl Insight: Financial institutions adopting cloud-based security solutions are positioned to tackle evolving threats with agility and precision while optimizing resource allocation and operational performance.

Integrated smart building technologies

Modern financial institutions are increasingly adopting smart building technologies to enhance security and efficiency. These integrated systems combine physical security with other building functions, such as energy management and HVAC systems.

Benefits for financial institutions include:

• Enhanced security: Comprehensive integration reduces risks and improves response times.
• Improved efficiency: Smart energy management systems optimize lighting, HVAC, and other resources, reducing energy costs by up to 30%.
• Data-driven insights: Access to actionable data helps institutions optimize both security and operational performance.

Ten insights every financial security team should know for 2025

Managing security in financial institutions comes with distinct challenges. To effectively address evolving threats, safeguard assets, and uphold customer trust, security teams must stay informed about emerging trends and technologies.

Here are ten key insights to help your team stay ahead:

ATM and branch security will remain a priority

ATM tampering and branch break-ins are on the rise, with ATM thefts increasing by 21% year over year, according to the ATM Industry Association (ATMIA). Investing in secure enclosures, anti-skimming devices, and surveillance systems is essential.

Insider threats demand attention

Insider fraud and security breaches remain a persistent concern. Enhanced employee training and stronger access control policies can help mitigate risks.

Physical security must complement cybersecurity

A recent report by Gartner states that 40% of physical security incidents now involve a cyber component, emphasizing the need for an integrated cyber-physical security approach.

AI surveillance is a game-changer

Financial institutions are adopting AI-powered cameras to detect suspicious behavior, such as loitering near ATMs or unauthorized access attempts.

Cloud-based solutions are the future

The adoption of cloud-based security systems in the financial sector is projected to grow by 38% by 2025. These platforms enable efficient security management across multiple locations, reducing operational strain.

Access Control is becoming smarter

Biometric access control adoption is increasing at a CAGR of 19%, driven by demand for tighter controls over employee and contractor access. Cloud-based solutions further enhance scalability and real-time management.

Fraud prevention extends to physical security

Physical security systems, such as secure cash-handling areas, contribute to reducing fraud by up to 30%, according to the Association of Certified Fraud Examiners (ACFE). Integration with digital systems enhances compliance and tracking.

Customer perception matters

Visible yet non-intrusive security measures, like well-placed cameras and attentive staff, create a safer, more trustworthy environment for customers. Not surprisingly, 67% of customers report feeling safer when visible security measures, such as cameras and security staff, are present, according to a National Retail Federation (NRF) survey.

Vendor accountability is crucial

According to a report by Secureframe, 74% of companies are unaware of all the third parties handling their data and personally identifiable information (PII). This highlights the necessity for financial institutions to ensure that third-party vendors adhere to stringent security standards to mitigate potential vulnerabilities.

Lifecycle management drives cost savings

Implementing proactive maintenance strategies can lead to cost savings between 8% to 12% over preventive maintenance and up to 40% over reactive maintenance. With the average credit union managing about 10 to 15 branches and multiple ATMS, this translate to significant annual savings in repair and replacement costs.

Lifecycle management: The foundation of smarter financial security

In 2025, effective security for financial institutions requires more than advanced technology. Strategic lifecycle management is essential to prevent vulnerabilities, avoid downtime, and reduce costs.

SiteOwl helps financial institutions stay ahead by centralizing security management, automating routine tasks, and ensuring full visibility into their systems. This proactive approach keeps infrastructure running at peak performance while addressing risks before they escalate.

As physical security becomes more complex, lifecycle management will be key to building resilient, cost-effective programs. Ready to modernize your strategy? Request a demo or explore our resources today.