Fintech continues to evolve in 2025, driven by AI innovation, regulatory changes, embedded finance, and digital transformation. From the rise of real-time payments (RTP) and stablecoins to the increasing role of AI in security and personalisation, Fintech firms must adapt to shifting consumer expectations, compliance demands, and technological advances TechInformed has gathered insights from industry […]
Fintech continues to evolve in 2025, driven by AI innovation, regulatory changes, embedded finance, and digital transformation.
From the rise of real-time payments (RTP) and stablecoins to the increasing role of AI in security and personalisation, Fintech firms must adapt to shifting consumer expectations, compliance demands, and technological advances
TechInformed has gathered insights from industry leaders to explore the most impactful trends shaping Fintech.
AI and machine learning reshape financial services
As AI becomes more integrated into financial services, banks and Fintechs will use it to automate risk management, fraud detection, and customer interactions. However, AI’s growing role in finance also introduces new cybersecurity challenges, making AI-driven fraud prevention a priority for 2025.
Glenn Fratangelo, head of fraud product marketing and strategy, NICE Actimize
“2025 will mark a critical juncture in the fight against financial fraud. Generative AI (GenAI), a transformative force across industries, presents a double-edged sword. While promising unprecedented innovation, it simultaneously empowers fraudsters with advanced tools for deception. This creates an environment where staying ahead of evolving threats requires a fundamental shift in approach.
“We will likely see the rise of synthetic identities, fuelled by AI, blurring the lines between real and fabricated data, challenging traditional fraud detection methods. In addition, deepfakes and AI-crafted phishing attacks will further amplify the threat, increasing the potential for large-scale breaches and the erosion of customer trust.
“In 2025, banks will increasingly rely on GenAI for fraud simulation and stress testing. By simulating potential fraud scenarios, institutions can assess their systems’ resilience and train detection models to recognise emerging tactics.”
Gareth Jones, business development director, HGS
“2025 will see AI impact the industry in a different way, namely in the realm of customer service. AI will become an invaluable tool for hyper-personalisation, where customers can receive financial products and services tailored to their exact needs.
“This includes personalised investment recommendations and customised loan offerings, enabling firms to leverage customer data to offer the most personalised customer experience possible.
“What’s more, AI will play a more pivotal role in accessibility and security. Its applications to chatbots and virtual assistants will help organisations detect fraudulent activity quicker and more efficiently while also analysing customer interactions and identifying suspicious activities and requests.”
The evolution of payments: real-time, stablecoins, and embedded finance
2025 will see rapid advances in payment technology, with real-time payments (RTP), stablecoins, and embedded finance continuing to shape how money moves globally. Digital-first payment solutions will dominate, and financial services will become more integrated into everyday apps and platforms.
Nadish Lad, global head of product and strategic business, Volante Technologies
“As the global payment ecosystem evolves, two major developments are setting the stage for a transformative shift: the adoption of the ISO 20022 messaging standard and the proliferation of instant payments. While these innovations have largely been implemented within national borders, the next frontier is enabling real-time cross-border payments.
“I expect to see an increased focus on standardising legislation that will drive solutions to streamline cross-border payments, leveraging real-time data and cloud technology to reduce transaction times and improve security. I suspect this will be driven by certain corridors, e.g. by linking national instant payment schemes, enabled by ISO 20022, such as USD-EUR.”
Chloe Mayenobe, president and COO, Thunes
“We’ve seen strong advances in blockchain technology this year, with regulated stablecoins opening up huge possibilities for cross-border transactions. What’s exciting here is their ability to boost business efficiencies — through reducing volatility, speeding up transactions, and improving liquidity.
“And while we’ve seen some early adoption in this space, 2025 is a turning point for stablecoin use, which will redefine how businesses and individuals move money across borders.”
Raman Korneu, CEO & co-founder, myTU
“Looking ahead to 2025, the continued rise of embedded finance will be a game-changer. Industries are already integrating financial services into their platforms, and this trend will only grow in sectors beyond retail and e-commerce.
“For example, in healthcare, medical apps now offer payment plans and insurance solutions, while real estate platforms integrate mortgage and rental services. Similarly, the entertainment industry increasingly adopts in-app payments for streaming, tickets, and gaming. This shift will simplify transactions for consumers and drive greater financial inclusion across diverse sectors.”
Regulation and compliance take centre stage
As fintech innovation accelerates, regulatory scrutiny will intensify. The coming year will bring new compliance requirements under PSD3, DORA, and evolving AI governance frameworks, forcing fintechs to invest in ‘regtech’ solutions to stay ahead.
Leo Labeis, CEO, REGnosys
“2025 will be a year of continued reporting challenges and subsequent growth of the ‘regtech’ industry — predicted to be worth $85bn by 2032 — as financial firms look to technology to stay ahead of regulatory changes.
“2024 saw the implementation of version 3.2 of the CFTC Rewrite, EMIR Refit (both the European and UK versions), JSFA, MAS and ASIC.
“2025 will see a continuation of these reforms with Canada and Hong Kong scheduled in the next 12 months. Eyes are also on the US with the new administration’s potential to adopt a new regulatory agenda, and Europe with several consultations regarding MiFID and SFTR.”
Scott Dawson, CEO, DECTA
“Another year, another prediction about open banking. While open banking has been at the forefront of Fintech conversation since 2018, I don’t think it’s controversial to say it hasn’t been as successful as its creators would have hoped.
“Open Banking came out of the Payment Services Directive 2 (PSD2) regulatory framework, the result of an attempt to level the playing field between payment service providers by giving them access to account information.
“PSD3 will likely serve as a continuation of PSD2 rather than offering an entirely new set of ideas, as PSD2 did. There will likely be further streamlining of authentication for Open Banking, along with extended IBAN checks that will enhance the safety of credit transfers and establish a clearer framework for e-money. Ideally, fraud countermeasures will address APP fraud, a significant contributor to fraud in the UK and across Europe, but this may not fall within the directive’s remit.”
Rui Dos Ramos, Fusion Risk Management
“The coming year promises a dynamic shift in the Fintech landscape, driven by a tightening regulatory focus. Compliance and resilience are no longer optional but central to sustainable operations. As the European Union’s Digital Operational Resilience Act (DORA) takes full effect, firms are at varied levels of preparedness.
“Smaller firms adopting a ‘wait and see’ approach risk penalties and operational disruption. Larger organisations are establishing compliance teams, mapping interdependencies, scrutinising supply chains, addressing ICT risks, and implementing robust governance frameworks with clear roles, responsibilities, and reporting lines.
“Firms must act swiftly to close foundational gaps. Conducting gap analyses and identifying critical dependencies are essential first steps. Vendor management must meet DORA’s stringent standards, including detailed Registers of Information, rigorous due diligence and evidence-backed risk assessments. Cross-departmental data unification is crucial, as siloed systems hinder compliance.”
The future of banking: digital, AI-powered, and decentralised
Digital transformation in banking will continue accelerating, with AI-driven personalisation, automation, and alternative finance solutions redefining customer experience.
Kurt Vogt Gwerder, strategy consultant, Curinos
“Nearly four out of five customers (79%) say that good digital banking is the most important factor for convenience. Successful banks recognise this and are prioritising seamless digital journeys for their customers.
“Banks in 2025 have two goals: fix basic digital issues and invest in features that make them stand out. They need to prioritise fixing problems that impact their bottom line, like onboarding and deepening customer relationships. Those that don’t will lose customers.
“In short, banks need to bolster investment in digital and create a smooth, integrated experience to succeed in 2025 and beyond.”
Raman Korneu, CEO & co-founder, myTU
“In 2025, AI’s role in the financial sector will be far from novel — it will be mainstream. We’ll see AI change credit risk assessment using alternative data like mobile behaviour and transaction histories, enabling more accurate and inclusive credit scoring.
“This shift will make credit more accessible, particularly for underserved populations.
“Moreover, AI-driven fraud detection systems will evolve beyond simply flagging suspicious activity to proactively preventing fraud, further safeguarding both businesses and consumers.”
Fintech and sustainable finance
Krishna Subramanyan, CEO, Bruc Bond
“The fintech industry has experienced an intensified focus on climate change and sustainability in 2024, with the absence of leading financial players at COP29, magnifying the $1.8 trillion desperately needed in climate adaptation finance.
“The latest revelation in this space is the introduction of carbon markets under Article 6.4, which is predicted to reduce Nationally Determined Contributions (NDCs) implementation costs by $250 billion annually.
“Considering this, in 2025, we could see this regulatory framework accelerate the development of blockchain-based carbon tracking and digital ESG reporting tools. Financial institutions’ role in climate change extends far beyond direct funding — we shape market signals, influence investment patterns, and help determine the speed of the global transition to sustainable practices.
“Over the next 12 months, the fintech industry should brace itself for a tech-driven shift towards sustainable finance. With a collective effort from fintech organisations across the globe, we could see a real step towards tangible climate action.”
More predictions: 2025 Informed: Green Tech and Sustainability predictions
