The traditional financial landscape is changing as we speak. With a growing demand for top-grade online banking services, more and more companies are forced to adopt the newly emerging technologies to improve the quality of their products. The approach of many financial institutions is becoming more customer-focused, with AI technologies paving the way towards an expert level of services available to a wider range of clients. In this article, we’ll review the main fintech trends of 2025 that will revolutionize the ways fintech businesses increase their efficiency.
1. Neobanking Is on the Rise
With most services being available to customers from home, the banking industry had to take most of the operations online. Fintech promoted the growth of neobanks – financial institutions that have close to no differences from traditional banks, apart from not having an actual physical branch. Such companies have a few advantages:
- They offer cheaper services that are high-quality and customer-focused.
- Due to lower operational costs, neobanks can offer lower interest rates.
- They may provide fewer services compared to traditional banks, but they raise the quality of those services to the max.
- Neobanks are accessible to a wider range of customers all over the world.
- These banks are equipped with all the features of the usual banks but work 24/7 due to automation and AI technology.
If you’re interested in getting acquainted with digital banking systems, you can try Lendup for online loans, or such companies as SoFi, Acorns, Chime, Monzo, and others.
2. Embedded Finance Is Becoming More Popular
The digital landscape requires more financial solutions that are available to clients right away, without the need to open additional apps or register on a lot of websites and services. The market for embedded finance is growing as we speak. We’re expecting it to reach $7.2 trillion in just 5 years, meaning the demand for embedded financial products is now higher than ever.
We’re talking about financial products being available to customers on non-financial platforms, adding financial functionality to services that previously didn’t have such an integrated payment system. This new trend is making financial services accessible to a wider range of customers, diminishing the need to contact standalone banking applications or institutions. These could be easy-to-use one-click payment apps or interest-free loans that could be offered at online checkouts.
3. Green Banking Promotes Sustainability
As customers are becoming more and more environmentally conscious worldwide, there is a growing demand for green banking, making sustainability an important factor when choosing services or promoting a new business. Big industry players are already developing environmentally conscious products, promising a sustainable approach and building an eco-friendly profile. This means that nowadays, fintech companies need to think about how to minimize their ecological footprint. Some of them are already developing strategies to achieve carbon neutrality and reduce waste generation.
4. AI and Machine Learning Are Here to Stay
Artificial Intelligence in the fintech industry is growing as we speak and is expected to reach a stunning $26.6 billion by the next year. 90% of international financial institutions already depend on AI algorithms and machine learning in their everyday operations. Artificial Intelligence allows companies to monitor their clients’ financial health by collecting bulks of data, including credit accounts, cash accounts, and investments. This also allows businesses to make tailored offers and provide a customer-centric approach to their clients.
AI algorithms can:
- Control the quality of banking services.
- Provide customer support 24/7.
- Manage the bulk of client data.
- Make predictions and help business leaders make data-driven decisions.
- Catch human errors.
Chatbots and AI assistants can communicate with customers and give context-aware replies, helping users with various tasks, such as improving their financial awareness and helping build budget plans based on their spending habits.
5. Cryptocurrencies Aren’t Going Anywhere
While most financial institutions are still reluctant to fully use the advantages of cryptocurrency due to its high volatility rate, this type of currency is already a part of the financial world. According to a survey conducted by Stellar Development Foundation, 45% of customers use cryptocurrency for cross-border payments and more than half of them think it’s a trustworthy and legitimate payment option. PayPal has already announced support for cryptocurrency transfers back in 2022, and since then these assets have been growing and becoming more and more popular.
Crypto-backed loans are yet another trend that’s becoming more widespread due to their efficiency and speed. Cryptocurrency lending allows borrowers to get funds quickly by using a different type of crypto as collateral. Lenders, on the other hand, have another way to make their assets work for them with good interest rates. This way, people in need of quick money don’t have to go through a lengthy loan application process or visit banking institutions in person. Crypto-backed loans use blockchain technology and special platforms that help conduct this type of financial operation.
Conclusion
In the ever-changing world of finances and new technologies, we’re expecting to see more banks offer online services, with neobanking becoming a solid fintech trend that’s going to evolve even more in 2025. There’s also a high demand for banking services on non-financial platforms, urging fintech companies to implement embedded finance strategies, and offering new solutions to businesses across various fields and industries. AI and machine learning are becoming an inseparable part of everyday financial operations, improving the quality of customer service and helping human teams make tailored offers to clients and customers.
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