In 2025, the financial services industry is undergoing a rapid digital transformation. Many breakthroughs in FinTech, like AI-powered financial planning, embedded finance, decentralized finance (DeFi), and RegTech solutions have been growing quickly in recent years and are making an even bigger impact in 2025.
Technologies like generative AI, RPA, neobanking platforms, and contactless payments are changing how banks, financial firms, and startups work. Customers nowadays expect smarter, faster financial solutions. So, CTOs, product innovators, and digital leaders must keep up with FinTech trends to stay competitive.
This comprehensive guide explores the most impactful FinTech trends for 2025. These FinTech trends are identified from our extensive experience and supported by recent industry research.
Continue reading to explore these insights in detail, or listen to our podcast for an in-depth discussion on the latest FinTech trends.
What Is Financial Technology (FinTech)?
Financial technologies, or FinTech, use digital technology to deliver financial services and solutions. They facilitate financial transactions, asset management, peer-to-peer payments, and investing. However, there is a difference between conventional financial technology and modern FinTech systems.
Conventional financial technologies lack the innovation and sophistication that FinTech offers to businesses. However, the definition of FinTech keeps evolving, and so does the technology used in financial service delivery.
Ron Shevlin, a senior Forbes contributor, notes that FinTechs are outpacing banks in creating new checking accounts. This says a lot about how FinTech and digital banks are crushing traditional financial models.
Why Fintechs Are Beating The Banks In New Checking Accounts
Digital banks and fintechs dominate new checking account opening. They have a problem looming on the horizon, however.
New #Fintech Snark Tank post on @Forbes https://t.co/7fzJOgKstr
— Ron Shevlin (@rshevlin) January 6, 2025
As a banking institution or financial business, keeping up with FinTech advancements is crucial to ensuring business growth and staying competitive. Following the trends in the FinTech industry can also improve the customer experience by providing easy access to financial services.
If you’ve made up your mind but aren’t sure where to begin, then read our blog curated by our in-house experts as your guide for how to start a FinTech company. If you want to continue reading more about trends before making up your mind, keep scrolling. We have prepared a comprehensive list for you.
10 FinTech Trends To Watch Out For In 2025
1. Generative AI-Based Financial Planning
Generative artificial intelligence (AI) can help FinTech businesses with unique financial data that offers insights into financial products. For example, if you are a finance expert managing a hedge fund, you need insights into the outcomes of your financial strategies and fund allocations. Such advanced capabilities have made generative AI one of the most alluring FinTech future trends for enterprises and financial institutions.
Generative AI models can analyze historical market data and fund allocations to provide insights into future financial scenarios. They can also help in financial reporting and compliance optimization. Such capabilities make AI-based integration attractive for many FinTech businesses. According to a Cambridge Center for Alternative Finance survey, 90% of FinTech companies already use AI in some form.
Generative AI also reduces the operational burden on financial teams through automation. Anders Liu-Lindberg, a leading economic advisor to senior Finance and FP&A leaders, tweeted, “CFOs are now becoming the co-pilot for CEOs leveraging generative AI!”
The CFO is no longer the CEO's co-pilot!
AI is taking over, and here's how…For two decades, the mantra in Finance has been that the CFO should become the CEO's co-pilot.
There's a new co-pilot in town, and it's your Generative AI assistant.
If there is anything business… pic.twitter.com/BXhuGdxIIh
— Anders Liu-Lindberg (@LiuLindberg) December 22, 2024
Why Does It Matter?
Though in the early stages of adoption, generative AI has shown promising results for FinTech companies. The use of generative AI is set to increase with more innovation in the financial sector. But if you are a Fintech company offering services like financial advising and asset management, generative AI will help you offer enhanced results for your clients.
So, if you plan to integrate generative AI models for your finance advisor tool, you must customize it. A generative AI development company can help you customize and integrate algorithms into existing systems.
2. Bio And Neuro-FinTech
Bio-fintech and neuro-fintech have become more than just buzzwords for financial businesses. These two FinTech trends are reshaping financial transactions and user interactions. If you think this is just another experimental innovation by Elon Musk, “It’s not!”
But what is it, then?
Let’s start with bio-fintech!
Bio-finTech, or biological financial technology, amalgamates digital and physical elements. It integrates biological markets such as facial recognition, fingerprints, and DNA for highly secure transactions.
This approach relies on the simple fact that “each person has unique physicality.” FinTech companies can use these unique markers to ensure data security.
If you are a FinTech company integrating these biological markers, you will need expertise. To create custom APIs and integrate these markers, you can leverage a FinTech app development company.
Neuro-FinTech goes beyond the biological markers by integrating neuroscience into financial systems. You can build neural-FinTech systems using technologies like brain-computer interfaces (BCIs).
BCI is a suite of technologies that restore the function of central and peripheral nervous systems by capturing raw neural signals. In other words, it uses the signals in your brain to understand customer’s decision-making patterns.
Looks like Neuralink? Well, It’s just far more advanced!
It identifies brainwave patterns using BCIs, neuroimaging, and neural networks. This allows for the optimization of decision-making for customers and reduces risks during financial transactions.
Why Does It Matter?
Humans must make several decisions daily, and financial decisions can add to the burden. Neuro-fintech can simplify financial decision-making.
Fintech companies and financial businesses can use neuro-fintech systems to get more insights into customers’ thinking during crucial financial decisions. Plus, bio-fintech systems can help secure the transaction and access to financial details.
3. Decentralized Finance (DeFi)
A key FinTech trend that has evolved is decentralized finance or DeFI. Touted as the future of the FinTech industry, this umbrella term covers significant cryptocurrencies like Ethereum and blockchain. The democratization of data makes DeFI an ideal trend for reshaping the finance industry. It does not require a mediating authority like banks or third-party payment facilitators to validate transactions.
Instead, a ledger records all the transaction data accessible to everyone within the network. Blockchain is an example of a distributed and secure ledger that records transactions as blocks. Each block is encrypted. If a transaction is verified through a peer-to-peer network, the block is closed, and a new block with the data from the previous one is created.
These blocks are chained through data from each preceding block. Data in the previous block remains immutable, so financial information remains secure and cannot be modified. This is crucial for any FinTech company dealing with millions of transactions. Using DeFI, these companies can ensure secure transactions and provide a seamless payment experience.
Why Does It Matter?
Fintech security is a significant part of your operational challenges; blockchain-based systems can help you overcome them. It will help you enable faster and more secure transactions, reducing the mediator authority like banks or other financial institutions.
4. Embedded Finance
Embedded finance is one of the future trends in FinTech. It allows businesses to integrate digital banking and other financial services into non-financial platforms. This allows non-banking companies to offer various financial services to stakeholders such as suppliers, partners, and employees. These services include P2P payments, lending, and insurance.
FinTech companies use embedded software to widen the scope of their services and offer financial solutions to more customers. This is why there has been positive growth in the embedded finance market, which has grown at a CAGR of 32.8%. At such a rapid growth rate, embedded finance is poised to be the future of FinTech applications for non-financial platforms.
Why Does It Matter?
Embedded finance is a FinTech trend that will also improve the reach of payment technologies to non-financial platforms. For example, if you are a farmer selling your produced food items in the local market, selling them, getting instant payments, and having access to credit can be difficult. Some of these marketplaces are in remote areas and do not have access to financial institutions.
5. BNPL 2.0
FinTech businesses have experienced exponential growth with the buy now, pay later (BNPL) model. Customers get instant access to credit to make purchases, and lenders have a platform with advanced data analytics that allows them to make informed lending decisions. While this BNPL model has been successful, companies are now moving to its more user-centric iteration.
BNPL 2.0 is one of the trends in the Fintech industry that focuses on ease of lending, in-depth data analytics, and extended payment terms. This FinTech trend allows businesses to ensure a better lending experience for lenders and seamless access to credit.
FinTech firms can use AI models to provide in-depth financial profiles so lenders can make informed decisions. This offers a win-win situation for lenders and users looking to buy goods instantly.
Why Does It Matter?
BNPL 2.0 focuses on personalized lending, which will transform the way lenders lend money. This advanced FinTech trend will give lenders more data on the receiving customer. On the other hand, customers will receive a more personalized lending offer with credit ratings and an amount of money specific to their profile.
6. Advanced Regtech
Regulatory technology, or Regtech, is a FinTech subsector focusing on minimizing compliance risks and ensuring adherence to key regulations. Regtech aims to ensure compliance with legal and regulatory standards through technology-driven solutions. By leveraging Regtech tools, FinTech businesses can automate key compliance processes and policy implementation.
Developing a Regtech solution makes sense if you want comprehensive compliance across your FinTech apps and platforms. A FinTech app development company can customize the Regtech software, enabling automation, data analysis, and real-time monitoring.
Why Does It Matter?
Regtech will change the way compliance works. Automating compliance activities will ensure FinTechs spend more time on innovation than compliance.
7. Robotic Process Automation (RPA)
RPAs are not a new trend in the FinTech industry, but recent technological innovations have transformed the automation of financial activities. For example, customer onboarding has been a tedious and lengthy process for banks. Time is spent fetching KYC data from the database, verifying it, and completing the onboarding steps.
PAs reduce the time needed to onboard new customers on FinTech applications. By automating data conversions during the account opening process, RPAs help banks ensure complete transparency for customers. Due to reduced errors and automation, account opening for bank customers has become seamless.
Banks can program custom RPAs and integrate them within the banking mobile apps through custom API development.
Why Does It Matter?
RPAs will reduce the time needed for verification, speeding up lending and other operational tasks. This will give consumers faster access to credit, encourage higher spending, and boost transactions for FinTech businesses.
8. On-Demand Pay
On-demand pay or early wages will redefine FinTech and the finance industry’s future by improving access to credit. Employees within an organization can take advance payments of their salaries as credit using on-demand pay. FinTech companies and banks can collaborate with organizations to facilitate on-demand employee pay.
It opens new avenues for FinTech brands to connect with customers and provide new financial products. Plus, FinTech brands can access key data on salaried employees to personalize financial services.
Why Does It Matter?
Advance payments with on-demand pay will revolutionize lending activities. Rather than waiting for collaterals, FinTech companies will have more freedom with advanced pay options to earn interest through this trend.
9. Neobanking
Banking as a financial service has rapidly transformed with the emergence of FinTech. The emergence of smartphone applications and the ease of access have been pivotal in shaping new FinTech trends. One such trend is neo banking, a virtual bank that does not exist physically. Businesses looking to enter this innovative space are exponentially investing in neobank app development to offer a seamless and user-centric experience.
It offers all financial services through a banking mobile application, which provides better accessibility to banking services and 24/7 availability for customers. FinTech enterprises can develop mobile banking applications that provide all the financial services without customers needing to visit banks.
Why Does It Matter?
Neobanking will change the way new-age customers use banks. It will improve accessibility to banking services and reduce the burden on organizations by reducing their need for infrastructure.
10. NFC/Contactless Payments
NFC payments use near-field communications to facilitate financial transactions. FinTech apps facilitate transactions through short-range wireless technology between two smartphones or terminals. While NFC payments are not a new banking FinTech trend, they have seen massive adoption and innovation in recent years.
Tap-to-pay culture has already been mainstream among customers, leveraging NFC technology for seamless card payments. However, a significant shift has occurred towards using smartphones to make NFC payments. Going further, these NFC payment apps will prove to be one of the leading technologies that will redefine the future of the FinTech industry.
Innovation and technological advancements are at the core of these FinTech trends. Understanding the technologies that power these trends becomes crucial if you want to integrate them into your FinTech apps.
Why Does It Matter?
NFC payments will speed up transactions, ensuring customers’ ease of use and improving payment systems’ accessibility.
Technologies Shaping The Future Of FinTech
FinTech enterprises have been investing heavily in innovation. With more than 33,700 patents filed and 22,76 grants awarded to FinTech companies, technological advancements will propel the industry’s future.
Here are some key technologies FinTech brands are investing in to reshape the industry,
1. AI In FinTech
AI integration is a key trend in FinTech and has been transformative in many ways. For example, it has made data processing, analysis, and management more efficient. FinTech enterprises deal with millions of transactional data that require massive resources and infrastructure. The use of AI in Fintech apps reduces the need for enormous resources. It helps manage data effectively and ensures high-quality information for training custom Fintech algorithms.
Besides resource management, using AI technologies in FinTech has minimized lending risks. Using custom AI models, FinTech companies can offer features to review customers’ financial health automatically. Lenders can make informed decisions based on the review and data on economic risks.
These AI models leverage machine learning algorithms to analyze data and provide possible outcomes if lenders lend money. With increasing innovation, AI is bound to increase, leading to a progressive future for FinTech businesses.
2. Cloud Computing In FinTech
Whether it’s the integration of AI or any other technology, one primary concern while developing a FinTech app has been the cost of infrastructure. Cloud computing resources can help FinTech businesses scale without investing heavily in IT infrastructure.
Cloud computing services can help FinTech businesses reduce development and deployment costs. By leveraging cloud-native environments, they can develop scalable applications that ensure a seamless experience.
Cloud computing technologies also help FinTech companies ensure data security. Most cloud service providers, including AWS, Google Cloud, and Azure, offer identity and access management (IAM) features. This means FinTech firms can implement key IAM policies to secure financial information access.
3. Blockchain In FinTech
Blockchain technology is at the core of many FinTech trends, including crypto payments, secure storage, and democratized data management. One key benefit FinTech businesses experience while using Blockchain is automating operational processes through smart contracts. A smart contract is a self-executing program triggered by predefined conditions.
These programs or algorithms automate key actions needed to execute Blockchain transactions. FinTech enterprises can leverage smart contracts to automatically execute Blockchain-based data exchange and transactions. For example, if a lending-based FinTech app needs to automate the release of funds based on auto-verification of a customer’s credit health, a smart contract is all the enterprise needs.
Similarly, FinTech companies use Blockchain to enable real-time cross-border transactions and manage liquid assets like real estate and art. A key use case for Blockchain technology is crucial to digital identity management. FinTech businesses can use this technology to secure financial data, ensuring compliance with data regulations like PCI DSS, AML, and GDPR.
4. IoT In FinTech
IoT usage in FinTech has enabled innovative payments across devices like smartwatches, fitness bands, and voice assistants. Sensors power these IoT devices and store customers’ crucial financial information locally or through the cloud.
Smart point-of-sale (POS) payments are an IoT-based FinTech trend transforming payments. Retail businesses now use IoT-connected POS systems to enhance the retail shopping experience. This has led to an increased use of IoT devices, estimated to surge to 32.1 billion by 2030. In addition to POS, IoT devices enable FinTech companies to verify transactions from smartwatches.
Similarly, IoT is also helping FinTech firms track customers’ spending patterns and design their financial products accordingly.
5. SaaS In FinTech
Software as a Service has been transformative for FinTech businesses, reducing the need to put efforts in the backend and update existing systems continuously. The increasing user base and need for real-time updates among customers are driving FinTech firms to adopt SaaS products. Another significant impact of SaaS in FinTech is the reduced cost. SaaS eliminates the cost of FinTech app development and infrastructure expenses.
SaaS also improves the security of FinTech companies by leveraging cloud services. It reduces dependence on on-site infrastructure, which is susceptible to cyberattacks. If you are a FinTech enterprise, cloud-based data management for your SaaS products ensures the security of information stored on remote servers. This reduces the chances of phishing attacks and protects sensitive financial information for your business.
6. Automation In FinTech
Automation in FinTech operations can help your enterprise reduce the time needed for manual tasks. Take transaction record management, for example. Whether you are a small bank or an enterprise-grade asset management company, transaction data management at scale is always complex.
Your financial institution will be managing the records of millions of transactions. These records are essential for audits, fraud detection, and financial scrutiny by authorities. However, maintaining massive paper trails for transactions can take time and effort; this is where automation plays a key role.
Automating key financial operations has become a FinTech trend that reduces the manual effort of maintaining transactional records.
7. Robotics In FinTech
The use of robotics in FinTech is mainly attributed to RPAs that automate key operational tasks. Banks and finance sector businesses can use custom RPAs to automate transaction data management, financial health tracking, audits, and other operational tasks. These robotic software programs automate FinTech operations to reduce response time for specific customer queries.
RPAs are already a significant trend in the FinTech industry. Many enterprises are adopting them to reduce employees’ time on manual tasks. This helps financial advisors, banking officials, and enterprise employees focus on improving key product strategies.
All of these technologies power different FinTech trends, which are transformative and innovative. Integrating these technologies makes sense if you are a financial institution looking to optimize operations. But which technologies and innovations will be the next big thing for the FinTech industry? Here are some innovations that can redefine the Fintech and future of finance industry.
What Is The Next Massive Thing In The FinTech Industry?
FinTech industry is continuously evolving with new technological advancements at its core. For example, the evolution of AI/ML and other innovations will change how FinTech companies operate. While there is no limit to the types of FinTech trends these evolutions bring, here are some of the major innovations to expect in the future,
1. Evolved AI
Evolved AI will change the way financial services are delivered. It will bring autonomy to FinTech ecosystems, reducing human intervention. This disruptive trend of using artificial intelligence in app development will offer dynamic risk assessments, asset management, and hyper-personalized capabilities. Autonomous FinTech systems powered by AI will be the next big thing disrupting the BFSI sector.
2. Alternative Lending
P2P payments have changed how transactions happen, leading to a new era of alternative lending. Also known as P2P lending, this latest trend in the FinTech industry will gain more traction in the future. It will also leverage AI capabilities paired with RPAs to automate most activities, including financial profiling and credit score determination.
3. Quantum Safe Finance
Quantum Safe is the next technological leap that will transform financial data security. It is a growing FinTech trend that will help protect data and ensure the security of digital assets in the future. Quantum Safe encrypts financial data using mathematical algorithms that are hard to break.
With the increasing computing power and rise of quantum computers, breaking the existing encryptions will become easy. This is why BFSI businesses invest heavily in ensuring their data remains secure against the threat of quantum computing.
While investing heavily in “quantum safe” may become expensive, integrating such innovations into existing banking systems is what matters. Without proper implementation, cyberattackers can exploit vulnerabilities.
How Will Excellent Webworld Help Integrate Technologies Into Your Fintech Businesses?
The FinTech industry is experiencing a transitional phase, and most businesses are switching to more intelligent platforms. The increased use of technologies like AI and Blockchain will shape the industry’s future. We hope this article has helped you understand the impact of such technologies in the FinTech industry.
Now that you know the impact, implementation is where Excellent Webworld can help. We are a leading FinTech development company with over 13 years of experience delivering innovative solutions. With AI development and FinTech development expertise, our team can provide high-end financial products.
With more than 900 successful projects delivered across business niches, we have the right blend of expertise and technical know-how. If you want to capitalize on the latest FinTech trends, we can help by creating unique solutions tailored specifically for your business. Contact us now and make the most of trending technologies to fuel your FinTech growth.
Why Choose Excellent Webworld’s Dedicated Team Over In-House Developers?
Choosing Excellent Webworld’s dedicated team gives you access to skilled professionals without the hassle of in-house hiring or the unpredictability of freelancers.
| USPs | In-House | Excellent Webworld | Freelancer |
|---|---|---|---|
| Weekend Support | No | Yes | No |
| Dedicated Resources | Yes | Yes | No |
| Termination Cost | High | No | No |
| Project Manager Cost | High | No | No |
| Query Support | High | 24×7 | No |
| Time to Start Project | 2 – 10 Weeks | 1 Day – 2 Weeks | 1 – 10 Weeks |
| Hiring Model | Full Time | Monthly, Part & Full Time | Weekly, Hourly |
| Cost of Training | 10k – 30k USD | 0 | 0 |
| Time to Scale Size of the Team | 4 – 16 Weeks | 48 Hours | 1 – 10 Weeks |
| Availability | 8-9 hours (Depending on working hours) | Around-the-clock | Uncertain |
| Agile Development | Maybe | Yes | No |
| Free Trial | No | 7 Days | No |
FAQs
AI is transforming the FinTech industry by improving decision-making, enriching customer experiences, and boosting operational efficiency. It helps FinTech businesses with fraud detection systems, tailored financial advisory services, credit scoring models, and algorithmic trading solutions. Leveraging machine learning, FinTech companies can use large datasets to reveal insights, anticipate trends, and manage risks.
AI-enabled chatbots and virtual assistants enhance customer support, while advancements in natural language processing (NLP) broaden access to financial services.
FinTech companies make money in many different ways. From facilitating transactions and earning commissions on them to charging interest for credit usage, FinTech uses multiple revenue models to earn money. Some of the major models are,
Open banking enables third-party providers to access consumer banking data with their consent. FinTech companies can use the financial data to develop new customer applications and services. Further, FinTech businesses can offer budgeting tools that collect data from multiple banking accounts and provide users with a comprehensive view of their finances.
The payment industry is evolving rapidly, and innovations like AI and Blockchain are being adopted more widely. Additionally, there is a growing demand for real-time payments across different sectors, including B2B.
Digital payments are set to dominate other payment methods in the coming years. A significant FinTech trend emerging from digital payments is the rapid adoption of central bank digital currencies, which will stabilize traditional finance models and FinTech companies more.
Article By
Paresh Sagar is the CEO of Excellent Webworld. He firmly believes in using technology to solve challenges. His dedication and attention to detail make him an expert in helping startups in different industries digitalize their businesses globally.
