Easier payments, robot assistants and improved accessibility -- fintech predictions for 2025

The banking and finance sector has already seen some major changes in technology use in recent years. These show no signs of slowing down but newer developments like AI are starting to have an impact too.

Here are some expert views on what may be in store for the fintech sector in the year to come.

James Barrese, senior VP, fintech at Intuit says, "In 2025, the fintech landscape will be shaped by four key trends that will collectively transform the way individuals and businesses interact with financial services, paving the way for a more inclusive and accessible financial ecosystem. First, a shift towards banking payments and a preference for instant payments will drive the demand for faster and more efficient money movement. Second, robust digital ID frameworks, potentially government-backed, will be essential for securing transactions and building trust in the digital economy. Third, embedded fintech solutions will continue to proliferate, offering seamless financial services within non-financial platforms. Finally, the rise of AI agents and agentic workflows will necessitate the development of payment infrastructures that can support AI-initiated transactions, further blurring the lines between technology and finance."

Technology will begin to replace staff thinks Naeem Siddiqi, senior risk advisor at SAS. "Watch for robot assistants to begin replacing branch staff and customer service desks. Less sophisticated versions of these have been used by Japanese retailers for many years now, answering simple queries like 'where can I find No. 3 screwdrivers?' The AI-driven smarter assistants used in banking will be able to converse with customers much like chatbots, and they'll provide better guidance than an ATM. This could prove a boon to banks and their customers alike, but these advances will necessitate a higher level of governance and control at financial institutions."

Sarah-Jayne Martin, director of financial automation at Quadient, expects to see the expansion of real-time payments:

In 2025, real-time payments will become the expected norm in business transactions, as the corporate world takes a leaf out of the consumer banking playbook. Companies, no longer content with waiting days for funds to clear, are demanding instant transfers to enhance cash flow across the credit-to-cash cycle. The rise of digital invoicing, automation, and advancements in payment infrastructure mean that delays in the payment process will increasingly be seen as an avoidable friction.

We'll see financial leaders prioritizing these systems to gain a competitive edge by freeing up working capital faster. Reduced payment delays will also help to build stronger vendor relationships, smoother operations, and a more agile response to market changes. This shift, supported by the continued evolution of Open Banking and real-time payment networks, promises a more transparent, efficient financial landscape where immediate payments aren’t a luxury but a baseline expectation. Businesses that use these capabilities will stand to significantly improve liquidity, resilience, and overall financial health, driving a new standard for the industry.

Artificial intelligence is expected to begin having a greater impact in the finance sector says Vaikkunth Mugunthan, CEO and co-founder of Dynamo AI. "The growth of innovative AI solutions merging customer data and financial service products and services through an unleashing of Open Banking technology product breakthroughs will break down barriers in financial services and provide helpful solutions for millions across the globe, but a couple of personal data misuses in the papers will spur regulators in the UK, EU, US, and Singapore to take action and provide more specific guidance on AI use in the sector."

This is echoed by Hugh Scantlebury, CEO and founder of Aqilla:

2025 will be a defining year for AI. More businesses will adopt the technology, but I can also see an equal amount of conscious disengagement. Overall, this will mean far fewer businesses will be sitting on the fence. As 2025 progresses, it will become apparent which organizations have engaged with AI and are seeing the benefits -- and which ones are either late to the party or have chosen not to deploy.

As a result, gaps will likely open up around efficiency, productivity, innovation and problem-solving. This will be particularly noticeable among finance and accounting teams. Those who delay on AI are likely to spend more time on mundane, repetitive tasks. However, those who have adopted the technology will benefit from more streamlined, automated processes -- and have time to focus on higher-value work that drives growth and productivity within their organization.

Financial organizations need to make better use of their data says Julie Muckleroy, global banking strategic advisor at SAS. "Big data has the potential to become the next big oil -- or the next big debacle -- for global banking. The explosive growth of data, driven ever higher by accelerating AI implementations, presents both opportunities and challenges. Whether their vast stores of structured and unstructured data become an asset or a liability depends largely on banks' ability to effectively evolve and implement their data framework and governance processes. Working toward deployment of a unified decisioning platform can help banks dismantle data silos and gain cross-functional insights that drive strategy and transformation."

Azimkhon Askarov, co-partner at Concryt thinks alternative payment methods will continue to have an impact. "Open Banking will continue to gradually eat into payment card volumes, but nowhere near enough to make Visa and Mastercard quake in their boots. In 10 years' time, it might be a different matter. Over 2025 in Europe, we'll see the continued growth of mobile-based instant transfer apps like Blik in Poland and Bizum in Spain. The newly launched Wero wallet in the EU will definitely be one to watch. Europe has been trying to create its own version of Visa and Mastercard for decades, and after many false starts, Wero is already showing significant traction and could be the one that sticks."

Tom Eyre, co-founder and co-CEO of Loqbox thinks technology can help with financial skills:

Today's young people are becoming financially savvy earlier than ever, picking up skills like budgeting, saving, and even responsible investing through app-based financial management tools. Growing up in an economy framed by the cost-of-living crisis, it's no wonder they feel the need to plan so far ahead. With property prices soaring by 173 percent since 1997, and 40 percent of young adults unable to afford even the most basic homes in their areas, these young savers are adapting to a tough financial reality. In the long term, it will take a collective effort from people, businesses, and the government to create stronger protections for renters and improve financial literacy. This early financial literacy can be empowering, helping Gen Alpha make informed decisions and, in some ways, build resilience as they navigate an uncertain economy.

In 2025, we can expect banks, digital challengers and payment providers to focus more of their efforts on serving younger demographics with highly personalized tools to help them achieve their financial and lifestyle goals, build their credit records, and form good savings habits.

Manpreet Haer, co-founder of PayFuture echoes this, thinking fintech will be the key to fostering financial inclusion and breaking down societal barriers:

In 2025, we will see fintech making a tangible and positive impact on improving financial inclusion. Globally, there are 1.4 billion unbanked people who can’t access financial services, while around 345 million micro-enterprises are informal and struggle to get formal banking services. This is a financial literacy and exclusion gap that needs filling -- fast.

Without financial inclusion, the world economy will stagnate, and underbanked populations will suffer -- but fintech is the key to unlocking a new era of prosperity for all. Look at local community and microcredit cooperatives in rural Africa that help women to engage with financial services, the success of local payment methods in Africa, to national digital transformation programs like Saudi Arabia's Vision 2030 initiative. New technologies have helped emerging markets make great strides in closing the financial exclusion gap, which is getting smaller by the day, but much more needs to be done.

Security is always a concern in the banking and finance industries, Rich Vibert, co-founder and CEO of Metomic believes there heeds to be more emphasis on the human factor. "Financial Services organizations will increasingly prioritize building a ‘human firewall’ as part of their cybersecurity strategy. Financial Services business, and especially banks, have long been a favorite target for cyber attackers. According to the IMF, attacks on the financial sector have cost up to $12 billion over the last 20 years, and attacks are only becoming more frequent. In 2025, we predict we'll see Financial Services businesses investing more in their cyber hygiene, empowering their own workforce to actively participate in securing and protecting their sensitive data. This approach emphasizes collective vigilance (as opposed to IT security being solely in the hands of the CISO's organization) and rapid response to cyber threats, fostering a culture where cybersecurity is a shared responsibility among all stakeholders."

Image credit: wutwhan/depositphotos.com