The adoption of Agile methodologies is one of the biggest topics in large organisations and many IT departments nowadays. Banks must introduce new flexible approaches to keep up with the changes in the market, especially regarding the new digital technologies. Large enterprises in all information system programs have implemented Agile approaches because of the widespread benefits. Unlike traditional development model, agile guidelines encourage businesses to follow a straightforward and data-oriented procedure and continually test and learn, rather than producing a final product before testing. This research aims to explore the benefits of Agile approaches in the banking industry and the problems with implementing such methods in product development processes. This study also leads to speedy marketing by offering a minimum viable product (MVP) that satisfies consumers’ needs and can be easily adapted. Although various studies explored the implementation of agile principles in multiple contexts, this research is based primarily on the banking software industry. The banking sector must transform itself, to become more digital. However, digital processes are not as simple as in other sectors because banks operate on regulated markets, making it even more challenging to adopt Agile methods. In conjunction with the Agile approaches, this study also illustrates the current management practices. This research is mostly theoretical and qualitative, attempting to complete an existing gap by thoroughly reviewing the existing literature on Agile methodologies for software development and reviewing the standards for banks’ software development life cycles. Managing the regulatory climate in which banks work is an essential challenge in optimizing agility. This paper’s findings contribute to the field by offering an insight into how Agile approaches can be implemented on the banking setting by analysing the existing literature, with a focus on financial software development.