The fintech ecosystem is evolving at an unprecedented pace, driven by technological innovations and changing consumer preferences, as people increasingly opt for digital payment solutions over cash. Mobile wallets, contactless payments, and other digital financial tools are becoming the new standard, fueling the growth of the global payment industry.
According to the BCG Global Payments report for 2024, while the overall growth of payments may slow—projected to decrease from 9% to 5% CAGR by 2028—the industry remains on track to reach $2.3 trillion in revenue. Investors are increasingly focusing on the economic potential of the sector, creating a competitive environment driven by fintech innovations.
The Role of AI in Transforming Financial Markets
A new trend is emerging in modern fintech: the rapid adoption of artificial intelligence across nearly all areas of the sector. AI is being applied to a growing range of tasks, from automating customer service processes, which significantly improves interaction quality, to optimizing risk management and implementing advanced anti-money laundering (AML) systems. Moreover, AI accelerates software development by automating basic code creation and improving code quality. On a higher level, companies are now developing bespoke AI solutions tailored to their unique needs, pushing the industry toward technological excellence.
Many companies face challenges in complying with local data protection laws and navigating uneven analytical maturity levels across regions. To overcome these barriers, strategic investment in AI integration focused on measurable results will be crucial. For example, 60% of companies in India and China aim to integrate local AI models with global solutions, but fragmented regulations complicate this process. Despite these challenges, initiatives like the ASEAN Guide on AI Governance are beginning to establish unified AI management frameworks. AI is a key driver of innovation in the fintech industry and will remain so for the next 2–3 years.
The Rise of Central Bank Digital Currencies (CBDCs)
Digital currencies offer governments new opportunities to manage monetary policy, enhancing transparency, security, and convenience in financial transactions. Central bank digital currencies (CBDCs) also reduce reliance on cash, accelerating economic digitalization. Countries such as China and Nigeria have already launched pilot projects for CBDCs to improve financial inclusion, reduce transaction costs, and modernize payment infrastructure.
In 2025, further expansion of financial systems is expected in several countries (e.g., the U.S. and Sweden, which are preparing pilot projects) due to growing cross-border payment initiatives. The International Monetary Fund is actively studying CBDC's impact on the global financial system, while private fintech firms are developing digital wallets and infrastructure to support these initiatives.
Embedded Finance Solidifies Its Position
The integration of financial services into non-financial platforms is gaining momentum. E-commerce platforms, social media, and SaaS markets are actively embedding payment, credit, and insurance solutions into their ecosystems, providing users with a smoother and more convenient experience. Infrastructure providers focusing on API integration are also benefiting, enabling faster and more cost-effective deployment of innovative services such as in-app insurance and contextual lending.
This trend simplifies financial processes for small and medium-sized businesses (SMBs), helping them increase efficiency and reduce costs. However, embedded finance faces regulatory and compliance challenges. As demand for these solutions grows, companies will decide whether to build in-house solutions, purchase off-the-shelf ones, or collaborate with fintech firms. Strategic partnerships are expected to dominate, allowing platforms to leverage fintech expertise while minimizing risks and costs.
Cybersecurity: A Priority for Modern Companies
As financial services increasingly adopt artificial intelligence across all areas of operation, they face growing regulatory scrutiny. In 2025, new rules and legislative initiatives will emerge as lawmakers implement frameworks aimed at building trust, increasing transparency, and mitigating risks of bias and unethical AI use. In fintech, where the protection of customer data and financial operations is critical, investing in advanced cybersecurity solutions is becoming a fundamental part of business strategy.
Navigating this evolving legal landscape will be a key challenge for banks and financial institutions in 2025 and beyond. Additionally, a major trend in risk management is the development of a corporate security culture, where companies recognize that risks and fraud require effective management at the level of the organization, employees, and partners.
The Expansion of Super-Apps
Super-apps integrate diverse financial services—ranging from payments and loans to investments and personal finance management—into a single, convenient interface. These apps not only make financial operations more accessible but also save users time and help them manage resources effectively by combining services from various industries.
In 2025, the global super-app market is expected to grow significantly due to user demand for "all-in-one" solutions. Major European and East Asian players, such as Revolut and Gojek, are expanding their offerings, intensifying competition and reshaping the market landscape.
Dynamic Growth in Partnerships and Business Scaling
In 2024, the fintech industry witnessed a trend toward consolidation across various markets. In the UK, declining IPOs and reduced venture funding pushed smaller fintech companies to consider acquisition offers. This led to a wave of mergers and acquisitions, with Mastercard agreeing to acquire Sweden's Minna Technologies and Visa purchasing London-based Featurespace—both on the brink of bankruptcy.
Partnerships between fintech startups, banks, tech corporations, and regulators are fostering ecosystems where each participant contributes to improving service quality. Scaling businesses enables companies to optimize costs, improve operations, and expand into new markets. These processes not only accelerate innovation but also create a sustainable business model that can adapt to the industry's rapidly changing conditions.
Ongoing Development of Open Banking & APIs
Digital banks and increased competition are pushing traditional banks to adopt AI and API technologies, with 44% of the largest banks already modernizing their platforms. In 2024, Open Banking concepts continued to evolve globally, transforming financial services and improving customer experiences.
In Europe and the UK, Open APIs have allowed authorized third parties to access bank accounts without requiring users to disclose credentials, enhancing consumer security and control. Meanwhile, Asia-Pacific countries, including Japan and Australia, are implementing Open Banking standards, empowering consumers and fostering innovation in financial products.
The fintech industry continues to transform financial services, combining innovation, accessibility, and convenience. Current trends, such as the rise of digital currencies, AI integration, instant payments, and embedded finance, are paving the way for a more transparent, inclusive, and sustainable financial system. Despite challenges posed by regulatory barriers and rapid change, collaboration between fintech firms, banks, and tech partners demonstrates immense potential to create a new era of finance. In 2025, fintech will not only adapt to new realities but also drive the future of the global economy.
Further Development of Embedded Finance and BNPL Services
With the growth of e-commerce (experts estimate that sales will reach $43.32 trillion between 2024 and 2031, increasing to $116.86 trillion by 2031 at a compound annual growth rate of 15.23%), the demand for BNPL solutions is also rising, especially among younger generations who lack access to traditional banking services. Major players like Affirm and Klarna are taking strategic steps to strengthen their market positions. Affirm secured a $4 billion investment agreement with Sixth Street, enabling it to provide over $20 billion in loans over the next three years. Klarna, meanwhile, plans to sell its U.S. "pay in 4" credit portfolio to free up capital ahead of its anticipated IPO in New York. Additionally, Apple has integrated Klarna's BNPL service into Apple Pay, broadening the accessibility of these solutions for its users.
Despite intense competition, companies developing mobile applications, improving payment tracking tools, and offering high-quality solutions for both B2C and B2B will ultimately dominate the market.
Strong Players and Market Leader Challengers: A New Wave in Niche Markets
In 2024, the global fintech market saw heightened competition between established leaders and emerging players striving to capture niche segments. Large tech companies like Amazon began developing their own AI chips to reduce dependency on dominant suppliers such as Nvidia. This move underscores the determination of major players to strengthen their positions and diversify their offerings. Meanwhile, niche fintech companies continue to introduce innovative solutions, offering specialized products and services, further intensifying competition and driving the industry's growth.
Next-Generation InvestTech and InsurTech: An Era of Active Collaboration with Fintech
The new wave of InvestTech and InsurTech marks a shift toward closer collaboration with fintech companies, creating opportunities for integrated and technologically advanced solutions. These partnerships accelerate innovation, enabling faster adaptation to evolving client needs and regulatory requirements. For example, in 2024, Singapore-based insurtech firm Bolttech raised over $100 million in a Series C funding round, boosting its valuation to $2.1 billion. The round was led by Mitsubishi UFJ Financial Group's Dragon Fund and fintech lender Liquidity Group. The funds will be used to further Bolttech's global expansion, with the company already operating in over 35 markets worldwide.
Modern InvestTech platforms offer more accessible investment management, while InsurTech delivers personalized insurance products focused on convenience and efficiency. This collaboration transforms traditional approaches, making financial and insurance services more transparent, accessible, and user-oriented.
Continued Development of Open Banking & Banking APIs Across Key Markets
The growth of digital banks and competition is pushing traditional banks to adopt AI and API technologies, with 44% of the largest banks already modernizing their platforms. In 2024, the Open Banking concept continued to evolve globally, transforming financial services and enhancing customer experiences.
In Europe and the UK, Open APIs have allowed authorized third parties to access bank accounts without requiring users to share credentials, improving security and consumer control. In the Asia-Pacific region, including Japan and Australia, governments are implementing Open Banking standards to give consumers more control over their data and foster the development of innovative financial products. Additionally, the region is projected to see a 109% increase in cashless transactions between 2020 and 2025 due to e-commerce growth and mobile payments, strengthening the position of digital banks.
Fintech continues to transform the world of financial services by combining innovation, accessibility, and convenience. Current trends, such as the rise of digital currencies, AI integration, instant payments, and embedded finance, pave the way for a more transparent, inclusive, and sustainable financial system. Despite challenges posed by regulatory barriers and rapid change, collaboration among fintech companies, banks, and technology partners demonstrates immense potential for creating a new era in finance. In 2025, fintech will not just be a tool for adapting to new realities but a driving force shaping the future of the global economy.