Fintech in 2025

Let’s examine which trends truly transformed the financial sector, which solidified their positions, and which turned out to be overhyped.

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AI and Automation –Technology That Changed Daily Operations

Artificial intelligence has become one of the main drivers of change in fintech. In 2025, its use extends far beyond chatbots and simple automation processes.

Key areas where AI proved effective

Fraud detection and anomaly monitoring‍

Banks implemented AI models monitoring hundreds of parameters simultaneously - from unusual shopping patterns to anomalies in user geolocation. Real-timelearning systems improved the detection of suspicious transactionssignificantly, allowing institutions to react faster to emerging threats.

Back-office process automation‍

Processes that just a few years ago required manual work - document verification, compliance checks, regulatory reporting - were transformed into AI-driven workflows. Large institutions reported significant reductions in KYC/AML processing times.

Compliance and risk analytics support

‍Many banks introduced AI models to support regulation interpretation and monitor operational risk. This trend progressed slower than initially forecasted (high-risk decision processes still require human oversight), but it already significantly simplifies the work of supervisory teams.

Verdict: A full success. Although high-risk implementations still require human oversight, AI has become a critical component of fintech infrastructure.

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Behavioral Biometrics: A New Foundation for Modern Security

With increasingly sophisticated cyberattacks, static authentication methods are no longer sufficient. Behavioral biometrics - which analyze how users interact with their devices - has been adopted by more institutions as an effective security measure.

Why it gained popularity

• enables continuous and non-intrusive identity verification,
• makes account takeovers more difficult even if login credentials are compromised,
• complement sstatic methods, forming multi-layered protection.

Verdict: This technology has proven especially effective against social engineering fraud and remote account takeovers. Trend met expectations and became a pillar of modern cybersecurity.

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Regtech – Responding to Growing Regulatory Demands

Dynamic changes in financial regulations have made Regtech a key investment area. Solutions that automate compliance and risk monitoring have become particularly important in Banking-as-a-Service (BaaS) models.

Key applications of Regtech in 2025

• automated monitoring of KYC/AML compliance,
• tools for assessing supplier and partner risks (TPRM),
• alert systems identifying procedural irregularities in near real time,
• automatic generation of documentation for audits and regulators.

Verdict: Full automation is still limited by the need for human supervision, but the trend toward Regtech adoption is clear.

BNPL: Maturity Instead of Uncontrolled Expansion

The “Buy Now, Pay Later” (BNPL) segment continues to grow, but its character has shifted toward a more responsible, regulated model.

What worked well in 2025

• integration with open banking for better assessment of repayment capacity,
• development of algorithms evaluating risk based on behavioral and purchasing data,
• enhancements in shopping applications with payment transparency and recommendation tools.

What did not gain traction

• expansion into sensitive areas such as public services or healthcare, limited by regulations.

Verdict: 2025 was a year of market consolidation rather than aggressive growth.

Virtual Cards – Rapid Adoption and Practical Benefits

Virtual cards have secured a strong position in corporate expense management systems. They represent one of the most practical fintech solutions in recent years.

Why companies are adopting them

• they can be issued instantly and assigned to specific purposes,
• allow precise spending limits, control, and verification,
• replace physical cards, reducing the risk of misuse or loss,
• provide clear analytical data for accounting and finance teams.

Verdict: One of the most practical trends of2025. In many organizations, virtual cards have become the primary tool foronline payments and corporate expense management.

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Cross-Border Payments –“Glocalization” Instead of a Single Global Standard

International payments have undergone significant modernization. Instead of a unified global system, the market has adopted a combination of local preferences and global accessibility.

Major changes

• Payment Orchestration Platforms (POPs) now allow businesses to manage multiple payment providers and choose optimal routing,
• Multi-currency wallets enable firms to make payments in local currencies, avoiding some traditional currency conversion costs,
• Support for local payment methods (such as UPI in India, PIX in Brazil, or European account-to-account systems) has become a priority for international platforms.

Verdict: Paymentshave become simpler, faster, and better adapted to local markets, but we arestill far away from unified global system.

Green Fintech: Increasing Focus on Environmental Responsibility

In 2025, ESG (Environmental, Social, and Governance) solutions have entered mainstream finance. Both consumers and businesses increasingly expect financial services to support sustainable development.

Popular initiatives

• carbon footprint calculators integrated into banking apps,
• micro payments offsetting environmental impact,
• green loans and offerings for companies pursuing eco-friendly projects,
• analytical tools enabling businesses to monitor their environmental impact.

Verdict: Thistrend is stable but without heavy impact on the industry. Sustainability is stilla competitive differentiator in the banking sector.

What Didn’t Work in Fintech in 2025

Global Super-Apps

Despite numerous announcements, super-apps have not become widespread in Europe or the U.S. Key obstacles:

• regulatory fragmentation,
• lack of unified user preferences,
• complexity of integrating multiple services.

Super-apps remain dominant in Asia but are niche in Western markets. Despite that value added services and open banking market is still gaining popularity, and is expected is expected to grow to 44.9 billion USD by 2030 according to Statista.

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Broad Tokenization and DeFi in Banking

Blockchain and DeFi technologies are growing, but adoption in traditional financial institutions is slow. Main barriers:

• regulatory uncertainty,
• security concerns,
• lack of unified infrastructure.

Tokenization has been successful mainly in pilot projects and selected investment instruments.

Full Automation of Compliance

Despite Regtech advancements, areas requiring high-risk decision-making still depend on human oversight. AI systems provide strong analytical support but have not replaced human responsibility in compliance evaluation.

Summary

2025 has demonstrated that fintech is moving away from experimental hype toward stable, useful solutions deployed at scale.

The biggest successes were in:

• AI and automation
• Behavioural biometrics
• Cross-border payments and POPs
• Virtual cards
• Regtech
• ESG solutions

Meanwhile, technologies requiring significant infrastructure changes, such as DeFi or super-apps, are still waiting for the right conditions to scale.