Top 13 Fintech Trends Shaping the Future in 2025

Do you know that the Fintech industry is expected to grow to $644.4 billion by 2029? The reason behind its increasing popularity is the rising demand for advanced technologies such as AI, ML, RegTech, and super apps. 

Every day, many financial companies are entering this space and facing stiff competition because customers don’t behave the same as they used to. 

They want more than digital banking experience– an assistant that’s available for them 24*7 and can predict their needs before they even think. 

But if you are stuck with traditional old processes, then you would lose them, and their dissatisfaction would cost you a loss of market share. In this blog, you can learn about 13 exciting fintech trends that will gain popularity in 2025 and beyond.  

Top 13 Fintech Trends That Will Buzz in 2025

Let’s Give You a Breakdown of Each Trend in Detail:  

1. AI powered dynamic risk profiling 

Another hottest fintech trend in 2025 is dynamic risk profiling through AI-driven analytics. It’s a technology that helps trading platforms adapt to what users have in their portfolios, how markets are changing, and how a user trades. 

The platform doesn’t follow the fixed risk category, it changes as per the market. It can change the risk categories when the market is volatile. 

The trading platform can give a warning to traders regarding what can go wrong (for example 20% downside on trade) and how they can mitigate it. 

Such a type of customization can build user’s trust and enhance their trading experience. 

2. Open Banking 

One of the biggest innovations in the Fintech industry is open banking. 

Let’s say a customer wants to apply for a home loan or buy an insurance plan. Instead of sharing their data every time with the insurance provider, the customer agrees to share their financial data with 3 or more parties (through APIs). 

Through open banking mechanisms, banks partner with fintech companies to speed up transaction processes and enhance customer experience.  

While customers can manage their money in a better way and invest in financial products all using a single dashboard or an app. 

On the other hand, fintech companies can suggest smarter finance management options and investment services. While open banking facilitates data sharing, leakage of customer data results in reputational damage and financial implications. 

In a nutshell, open banking revolves around breaking down traditional silos and emphasizing increased collaboration between banks and third-party developers. The objective here is to make the financial services more customer-first and personalized. 

3. Regtech applications 

As financial companies operate in complex environments, they face intense pressure from regulators to manage daily compliances. 

Becoming compliant is the need of the hour, thus mandating banks and financial institutions to modernize their compliance processes by investing in regulatory technology (RegTech).  

But what exactly is RegTech? 

RegTech is specialized software designed for financial companies to understand regulatory changes and monitor compliance-related issues. 

These solutions are helpful in areas such as high-frequency trading platforms and payment gateways where the speed and manual oversight of transactions is a challenging task.

According to CB Insights, compliance related scandals are rising at an increasing pace. One popular example is Wells Fargo, a reputable international bank that paid a $185 million non-compliance fine in 2016 for opening bank accounts without customer knowledge.

Failure to comply with laws results in data breaches that can harm end users and financial institutions. 

The cost of data breaches have risen so much that an average breach cost organizations USD 4.88 million To prevent such losses, it’s important for financial companies to invest in AI technology. 

Thomas Franklin, CEO of Swapped shares his perspective on RegTech apps-  

One of the biggest benefits of Regtech applications is automated compliance reporting. 

Let’s say you have a fintech platform that trades volumes and manually checking that can take 500+ hours a month. What if this time can be automated by 70% or more and you can save the resources? 

Through Regtech applications, they scaled their operations without the risk of compliance disruption. He said that adding an automated credit system to their platform can process growing trade volumes as their users have increased by 35% in 6 months. 

“We stayed stable and maintained our reports timely, which ensured that we built confidence with financial leaders and stakeholders while maintaining their services”.  

4. Voice Integration 

Though the story of voice technology starts with Alexa and Google Assistant, it doesn’t end there. Voice technology is now making WAVES in the banking sector as well.  

Although it’s true that banking requires a human touch, and technology alone can’t build good relationships with customers. But the blend of voice integration in banking makes the processes faster, efficient and convenient for users.  

Garanti Bank and Westpac Banking Corporation have started implementing voice integration (Siri, Alexa, Google Assistant) in their banking products to help customers make financial transactions easily using voice commands. 

Customers can now make transactions handsfree such as paying bills, transferring funds, or tracking balance. 

This is especially a game changer for visually impaired people to manage their finances using a simple voice search. 

5. Banking as a service 

Banking as a Service is a model where licensed banks collaborate with non-banking businesses through APIs to offer financial products to customers. 

Consider a scenario where you are running an airline company, and you provide a loan facility so customers can finance their journey. 

In this case, airline companies function as non-banks, and customers can still enjoy the benefits of banking products. This is just one example of it. 

In today’s time, the BaaS model is growing by leaps and bounds, and studies support this. 

The market size of BaaS model is likely to grow by $7 trillion in value by 2030. This means that as customer preferences are changing, banks can support non-banks and generate additional sources of revenue. 

As an emerging fintech trend, non-banks can now launch innovative products and services for customers across all sectors and geographies to create maximum value for them.

In a nutshell, the BaaS model is about reimagining the new model of banking, an open finance ecosystem that puts more focus on enhancing customer experience. 

6. Super apps 

Like a Jack of all trades, Super apps combine multiple banking services in one place such as payments, investment, insurance, shopping, and entertainment. 

Though these apps have been dominating the Asian market for a while now, it’s expected that their existence will spread across other parts of the world.  

These apps are increasingly becoming common because they provide convenience, simplify routine operations, and save time. 

In the fintech sector, the goal of super apps is not just confined to providing a diverse pool of services in one place, but rather to hook customers to spend more time on them. 

Report from Gartner states that by 2027, more than 50% of the global population will use multiple super apps. 

A popular example of a super app is Alipay, which is an all-in-one app for sending and receiving money, paying utility bills, and making transportation expenses.  

Besides that, it comes with an array of features such as booking a cab, getting a credit card, and buying insurance products. 

7. Conversational banking 

Banking has become conversational now, where customers can directly chat with AI chatbots across different channels such as WhatsApp, banks’ websites, or banking apps. 

Conversational AI uses smart algorithms to automate query handling processes, improve response time, and free up bank agents to focus on important tasks.  

The specialty of conversational banking is that it personalizes promotional messages based on user needs and preferences. 

The #1 reason for banks and financial companies to adopt conversational banking is that customers’ expectations have changed. They want personal banking experience now.  

A research study backs this statement: 

Two-thirds of millennials want faster real-time customer service, and three-quarters of all customers expect consistent communication across multiple channels. Thus, conversational AI is not the future; it’s the NOW. 

As one of the emerging fintech trends, banks can build healthy relationships with customers by engaging them across multiple channels. This increases customer satisfaction and improves the net promoter score. 

8. Alternative lending 

Alternative lending is a new type of fintech trend that’s popular among consumers and small businesses who don’t get loans through banks. Such individuals can take loans from fintech companies through web-based platforms. 

Here, fintech companies create lending platforms that use data-driven algorithms to grant loans. These online platforms simplify the loan approval process by digitizing everything from documents to ensuring hassle-free onboarding and disbursing the loan. 

Alternative financing options have been growing rapidly in countries such as Singapore, India, and China. Although such non-bank lenders can fulfill instant loan requirements, their interest rates are comparatively higher, ranging from 6-99%. 

Rather than assessing traditional data parameters, alternative financing options evaluate multiple data points before granting loans. This has given rise to the buy now, pay later (BNPL) model. 

These alternative lenders use AI and ML algorithms to assess individuals’ creditworthiness through factors such as social media engagement, rental payments, and telecom bills. 

9. Autonomous finance 

You might have heard about autonomous driving where the driver sits in the car and enjoys riding without even driving. Like that, autonomous finance takes the front seat in fintech sector. 

Autonomous finance helps finance teams automate their manual tasks without requiring human intervention. Consider this as a personal financial advisor that’s available 24/7 for fund allocation and personalized advice based on user preferences and financial goals. 

Its data-driven algorithms simplify individual finances by tracking spending patterns, analyzing bank statements, and understanding financial goals. 

Here, virtual bankers do the heavy lifting for users by analyzing their portfolios, evaluating their risks, and providing personalized investment plans. There is no need for customer input. 

It’s also a game-changer for financial managers and companies as they can make strategic decisions in real-time through the powers of AI and ML. It helps them solve their business problems. 

10. Gamification 

When it comes to managing finances and tracking budgets, gamification is the biggest trend in 2025. Gamification increases user engagement by incorporating gamified elements on the app such as leaderboards, reward points, and collectibles. 

Imagine adding a gamification element to a digital banking app that prompts users to earn rewards when they save money. Or rewarding users with in-app coins when they perform transactions, which becomes a motivational factor for them to engage them online. 

In personal management and finance apps, Gamification can create habit-forming experiences for people. Let’s say you create a fintech app and add a gamified element within it such as “unlocking the levels or completing a daily challenge”.

Such challenges convince users to meet their savings goals and unlock new levels. To compete with their friends on leaderboards, they will continue to form micro-saving habits. 

In this case, the finance app uses behavioral nudges and progress trackers to encourage users to make consistent deposits. In return, they can unlock rewards such as cash-back incentives or virtual badges. 

For customers, money-making habits feel more rewarding. When the whole experience becomes engaging, people love to interact with financial apps daily. 

Here’s what Dawson, CEO and Cofounder of Looka, says about gamification: 

After operating in the branding space, he noticed how gamification elements can enhance user engagement.  

Adding gamified elements to apps, such as progress trackers for savings, badges for milestones, and leaderboards for investments, makes financial transactions easier. 

Users took consistent action toward achieving financial goals in an enjoyable manner. Gamification not only makes the experience more enjoyable; it develops financial habits among users by changing the way people interact with finances.

11. Contactless transactions 

One of the latest fintech trends that will hit the mark in 2025 is contactless transactions. 

As consumers have become more demanding than ever, they want contactless transactions that go beyond cards and wallets. 

They want rapid and easy payment methods, and contactless payments allow them to pay for anything without physical contact. 

The demand for contactless payments has increased after Covid 19 pandemic. Its market size is expected to reach 213.39 billion by 2034. 

For instance, Mastercard partnered with a fintech company to launch a biometric payment system on a pilot basis. Shoppers in Poland will be able to pay through scanning iris.

This type of biometric authentication is a secure way of making payments without being exposed to threats. For users, it’s a comforting experience. 

Even in 2022, Mastercard launched a campaign named “Pay Using Smile” method where users just need to wave their hand and pay using their vein patterns. Such payment trends dominate the payment ecosystem as consumers are always looking for quick transaction methods. 

12. Decentralized finance (DeFi) for borrowing and lending

Decentralized finance is a game changer for fintech companies in 2025. It changes the way people think about money. It gives them direct control to manage their money without relying on traditional banks. 

DeFi uses blockchain technology and helps businesses operate more effectively and depend less on banks. For customers, they can get access to loans and investment options at reduced costs. 

Decentralized lending services facilitate direct lending and borrowing between people. This revolutionizes the way people and businesses handle their money. 

13. Embedded Finance 

Embedded finance means where the financial services are integrated on non-financial platforms.   

Consider this a single platform that customers can use for banking, payment, lending, or insurance needs. They don’t need to leave their everyday app and do financial transactions with ease.  

Suppose you purchase a product from an e-commerce site, and you get instant credit at checkout. Or the same site offers a buy now, pay later facility based on your spending pattern. Won’t you feel good? 

This not just enhances the customer experience, but it gives businesses a new way to generate more income. 

In nutshell, embedded finance isn’t about providing convenience to users, it’s about making smart financial transactions.

Wrapping up 

Now that you know the fintech trends that are going to become popular in 2025, if you haven’t adopted these technologies yet, it’s the right time to do so to automate your manual processes, free up your banking staff, and personalize your customer experience. 

As a fintech app development company, our developers use the latest technologies to create secure digital platforms that make financial services accessible anytime and anywhere. More importantly, they keep an eye on current technological trends as soon as they roll out. 

Want to see how we helped a financial service provider by developing a web panel that digitizes their banking process? Click this case study to learn more. 

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