The quest system of Mount & Blade II: Bannerlord has been explained in greater detail in a development blog post on the game's official website.
Mount & Blade II: Bannerlord is the upcoming sequel to Mount & Blade, a medieval-era game set in the fantasy world of Calradia developed by TaleWorlds Entertainment. Players create a character and gallivant about this fictional kingdom in a sandbox environment. They can play as a mercenary working for one of the game's factions, join a faction properly as a Lord or Lady, become a roving bandit, or try to create their own independent kingdom. Battles between dozens or hundreds of infantry, archers, and cavalry take place in open fields as well as sieges on castles, towns, and cities.
Questing in the original Mount & Blade games was a relatively simple affair. You would be given tasks to capture locations, track down criminals, deliver goods, or transport cattle. Successful completion of the quest would get you some reputation with that NPC and some money as a reward. Higher reputation with faction leaders or Lords would make them more amiable to helping you, and helping NPC villages would increase the number of recruits they would provide to you when you were looking to expand your army.
Much of the old system is being retained, but new dimensions are being added as well. Quests can now have multiple ways to resolve them rather than a simple win or lose scenario. A provided example is a quest to clear out bandits from an alley - you may instead take up a counter-offer from the bandits to extort money from the NPC who sent you in the first place. Alternatively, you could clear out the thugs and begin your own criminal operation in its place.
The core new dynamic is that players have to decide between increasing their reputation with an NPC or taking a short-term reward instead. NPC reputation will matter for long-term goals like recruiting troops and conquering Calradia, but that won't count for much if your coffers are empty and you need to pay your troops their salary for fear of them deserting you. Ultimately, this will be adding another dynamic to the sandbox world that players will have to navigate in Mount & Blade II: Bannerlord.
What do you think of how Mount & Blade II: Bannerlord will be handling their quest system? Do you think it's an improvement compared to the previous game or do you think it is adding unnecessary fluff to the game? How do you think the game will turn out on release? Let us know in the comments below!