Top FinTech trends for 2025 you need to act on now

Jun 12, 2025 15 min read

In the last few years, FinTech has decidedly moved from an “emerging” trend to something very much in the here and now. To put it in perspective, Market.us projects the global FinTech market will jump from $234.6 billion in 2024 to a staggering $1.38 trillion by 2034. That’s an annual growth rate of 19.4% over the next decade.

For FinTech companies, 2025 is about determining where they fit in the new financial landscape. The key is staying informed and making smart moves before you lose steam.

To aid you in this process, I pulled together the FinTech trends that actually matter in 2025 — not the hype, but the ones pointing to where the industry is headed.

Let’s get into it.

Trend	Description
AI-driven transformation	AI is starting to take on real operational work. It automates decisions, improves analytics, and helps teams stay on top of growing transparency requirements.
Tokenization of real-world assets	Digital tokens are changing how people buy, trade, and access assets. By cutting out the middlemen, they open the door to fractional ownership and provide easier access for more investors.
Open finance & API monetization	Open banking is shifting from basic data sharing to full financial profiling. FinTechs now have to build smarter, API-driven products while keeping an eye on both cost and compliance.
Embedded finance & composable architecture	Finance is becoming invisible and modular, embedded seamlessly into apps and platforms through flexible, API-first infrastructure.
Real-time payments & settlement rails	Instant payment systems are going mainstream and demand real-time infrastructure, liquidity management, and fraud detection.
FinTech infrastructure modernization	Cloud-native, composable stacks are replacing legacy cores to give FinTechs more control, faster rollout, and resilience under regulatory pressure.
Cyber resilience in the AI era	FinTechs must defend against AI-powered cyberattacks with adaptive, real-time security that evolves as quickly as the threats do.
Green finance & ESG integration	Sustainability is shifting from reporting to product design, with APIs powering ESG scoring, green portfolios, and climate-aware lending.
RegTech 2.0 & compliance automation	AI is making compliance real-time and proactive, while regulators demand explainability, operational resilience, and audit-ready systems.
InsurTech & hyper-personalization	Insurance is becoming embedded and data-driven, delivered via APIs, priced by behavior, and triggered automatically.
Continuous identity & behavioral biometrics	Identity is now monitored throughout the session, using behavioral data and passkeys to stop fraud and smooth high-trust interactions.

“FinTech is entering a new era in 2025, shaped by advances in digital identity, AI, cybersecurity, embedded finance, tokenisation, and payments. At Innowise, we see this as an opportunity to rethink what’s possible. We’re staying close to the trends, but even closer to what our clients really need — practical, future-proof solutions that work in the real world.”

Dzianis Kryvitski

Delivery Manager in FinTech

Trend 1. AI-driven transformation: from assistants to autonomous finance

In 2025, AI in FinTech is deeply embedded in the core: powering underwriting, replacing dashboards, and automating entire workflows. Large language models (LLMs) and transformer-based agents are now making decisions in high-stakes processes. Credit scoring, for example, has shifted from rigid rules to behavior-based models with tools like TabNet, LightGBM, and CatBoost. These models tap into open banking APIs, GPS data, and device signals to make faster, more accurate calls with lower default risk.

Finance teams are replacing static dashboards with AI copilots that respond to natural language. For example, FinGPT or Ramp’s AI Copilot handles forecasting and scenario modeling in seconds. On the back end, frameworks like LangChain and Haystack are orchestrating invoice matching and document sorting with no human touch. Legal and risk teams are also benefiting from AI tools like Harvey and Klarity. These tools use retrieval-augmented generation to flag risks and review contracts based on internal policy data, thereby minimizing guesswork.

What to expect next

The next frontier is autonomous finance agents. These bots will integrate with modern payment rails such as SWIFT gpi, SEPA Instant, and FedNow to execute actions autonomously and shift treasury ops from reactive to predictive.

This shift calls for a new approach to architecture. FinTechs are adopting AI-native stacks, using tools like AWS Bedrock or Azure OpenAI for serverless inference and vector search layers to enhance recall. Additionally, platforms like Arize or WhyLabs are used to track model drift and decision traceability. Structured prompt orchestration is now key for reproducibility and auditing.

The regulatory bar is also rising. Under the EU AI Act, FinTechs are required to categorize their AI use cases and implement controls for high-risk systems. DORA emphasizes operational resilience and traceability, whereas MiCA focuses on crypto-related transparency. In short, AI must explain itself. If a system can’t justify a decision, whether approving a loan or flagging a transaction, it won’t meet compliance standards in 2025.

Trend 2. Real-world assets are moving to the blockchain

A few years back, “tokenization” sounded like something out of a crypto pitch deck. Now? It’s flipping the way financial institutions handle real-world assets. The concept’s simple: take something physical — like a Treasury bond, a chunk of real estate, or a private equity fund — and turn it into a digital token.

With tokenization, you can bake in ownership rights, like dividends or interest payouts, directly into the token. No paperwork, no waiting on someone in operations to click a button. You can also slice up assets so someone can invest in just 0.01% of a fund or building, all through a digital wallet (assuming they pass the KYC checks). What used to be off-limits to anyone outside the inner circle is becoming increasingly accessible.

What to expect next

By the end of 2025, more asset managers are expected to start offering tokenized share classes, particularly in areas like fixed income and private credit. Franklin Templeton and UBS have already moved in, launching on-chain funds, and others aren’t far behind.

FinTech platforms will quietly embed blockchain rails. Most users won’t notice. Custody, transfers, and compliance will happen in the background. Tools like Chainalysis KYT and Fireblocks will handle identity checks and secure storage at scale. Regulators are also moving forward: the EU may extend its DLT Pilot Regime, Singapore is scaling Project Guardian, and U.S. regulators are reviewing tokenized security classifications.

Trend 3. Open finance shifts to data monetization

In 2025, FinTechs now have access to data from way beyond basic bank accounts — think pensions, investments, mortgages, insurance. That means we’re moving from simple account aggregation to full-blown financial profiling. Now, companies can build smarter products using real-time data from all corners of a person’s financial life.

So, why the big push? Regulations like PSD3 and the EU’s Payment Services Regulation (PSR). PSD3 is raising the bar with stricter API standards. PSR is cleaning up the mess of inconsistent national rules, which makes APIs more predictable for developers across Europe. As a result, FinTechs can now build features like automated affordability checks, real-time insurance pricing, and personalized investment advice without jumping through hoops.

What to expect next

FinTechs will need to rethink their architecture. API orchestration tools like Kong, Gravitee, or Apigee are becoming essential for managing access, tokens, and latency across multiple providers. Data normalization layers such as Railz, Flinks, and Codat will be key for integrating non-standardized financial data into clean workflows.

PSD3 and PSR will also raise the bar on compliance. Third-party providers (TPPs) will need to implement secure redirect flows and real-time revocation protocols. Dynamic client registration and token lifecycle management will be required. FinTechs that handle these changes early and build with performance and modularity in mind will be able to scale faster as open finance becomes the norm across Europe and beyond.

Turn open finance data into smarter products with Innowise.

Trend 4. Embedded finance goes mainstream

In 2025, finance is built into the tools people already use — like checkout pages, payroll software, CRMs, or invoicing platforms. This is embedded finance in action: getting a loan while you’re sending an invoice, buying insurance as you check out, or managing employee benefits right inside your HR app.

Embedded finance is possible thanks to modular FinTech infrastructure like BaaS, payment APIs, and orchestration layers. This allows non-financial companies, like logistics startups or marketplaces, to unlock new revenue streams and make their products more engaging. It all relies on composable stacks (SDKs, orchestration engines, regulated partners), making it easy to mix services. However, flexibility depends on your backend provider, especially if they control compliance or the ledger.

What to expect next

BaaS is under pressure. In the U.S., regulators are cracking down on sponsor bank relationships that lack proper oversight. The OCC and FDIC have flagged issues around compliance outsourcing and customer transparency. This signals a shift: platforms embedding finance will need deeper operational controls and clearer visibility into their partners’ regulatory standing.

As embedded finance matures, expect more focus on compliance orchestration and risk layering. Embedded finance providers will need to expose more granular APIs for onboarding flows, limits, fees, and compliance flags. Platforms that treat finance as a plug-and-play add-on will struggle. Those who invest in composability, observability, and trust will scale.

Trend 5. Real-time rails are breaking the old payment rules

Real-time payments are no longer a future bet. In the U.S., FedNow is live, making 24/7 transfers with final settlement in seconds. Europe’s SEPA Instant covers most member states with euro transfers under 10 seconds. And globally, systems like India’s UPI, Brazil’s Pix, and Singapore’s FAST have already reshaped how digital money moves. The rails are getting faster and smarter.

A big reason why? ISO 20022. Unlike legacy formats, it sends structured, machine-readable data with every transaction. Banks are building full ISO 20022 support across retail, treasury, and FX rails. For finance teams, real-time payments mean dynamic liquidity, no more cutoff times, and instant cash positioning. For neobanks and cross-border FinTechs, it’s a game-changer for payouts, refunds, and B2B payments.

What to expect next

As adoption grows, FinTechs will need infrastructure that supports event-driven workflows, API-triggered disbursements, and instant liquidity calculations. Tools like Moov, Dwolla, and Volante are emerging as real-time payment enablers, while ERP platforms begin to offer native hooks into ISO 20022-compliant APIs.

The strategic shift is this: settlement time is no longer a constraint. That means finance teams can build new products, optimize working capital, and design pricing strategies centred on speed. But it also means risk teams need to adapt, as fraud can move just as fast as money. FinTechs should build real-time risk engines and update compliance processes to operate at payment speed, not batch speed.

Trend 6. FinTech infrastructure reboot: modular, cloud-native, resilient

The FinTech infrastructure stack is undergoing a major overhaul. Legacy banking systems are being replaced by modular, cloud-native platforms like Mambu and Thought Machine. Tools for lending, such as Amount and Lendflow, allow FinTechs to quickly launch credit products with embedded risk checks. While BaaS platforms like Synapse and Unit sparked the embedded finance boom, regulatory pressure, particularly in the U.S., is pushing the market toward more robust, transparent infrastructure.

This shift gives FinTechs a big advantage. Rather than dealing with outdated systems, teams can launch products faster, run experiments, and scale easily. With real-time pricing, dynamic credit limits, and instant onboarding all possible, orchestration is key. The focus is shifting from just building on infrastructure to designing with it.

What to expect next

FinTechs are moving away from tightly coupled stacks. Instead of relying on one provider for ledger, payments, compliance, and KYC, companies are choosing best-of-breed components and connecting them with orchestration layers. This modular approach helps companies adapt faster to new markets, partners, or regulations.

This also reflects a de-risking strategy. Regulators are watching embedded finance closely. If a BaaS provider loses its sponsor bank or fails an audit, it can impact every FinTech built on top of it. To avoid that, FinTechs will increasingly spread critical systems across providers — using one partner for payments, another for identity, and building their own ledger or risk engine internally. Cloud-native stacks built this way can grow faster and stay compliant under pressure.

Launch next-gen financial products without legacy limits.

Trend 7. From static defense to dynamic cyber resilience

In 2025, cyber threats are getting smarter. Attackers utilize generative AI to scale phishing campaigns, spoof identities, and even deepfake their way past KYC. So, FinTechs have no choice but to fight fire with fire. Static rules don’t cut it anymore.

Adaptive fraud detection now relies on real-time data streams, unsupervised machine learning, and behavioral biometrics to flag threats as they unfold. Zero-trust is becoming the default: every session, device, and action is verified dynamically. Even security teams are using LLMs — this time defensively — to simulate attacks, spot audit anomalies, and feed attackers fake data. The goal is to catch fast-evolving patterns before money leaves the system.

What to expect next

Expect more use of risk-based session scoring, biometric fallback, and transaction-level authorization rules. FinTechs will start segmenting infrastructure access, encrypting audit logs by default, and integrating LLM output review into fraud ops.

At the infrastructure level, zero-trust principles will extend beyond login. Session scoring, device fingerprinting, and adaptive KYC flows will start shaping not only fraud prevention but product experience. Regulatory expectations are also rising under frameworks like DORA and NIS2 in the EU. FinTechs must prove operational resilience and incident response capability. Staying compliant will require visibility and strong controls that evolve as fast as the threats do.

“Cyber resilience in 2025 requires systems that learn and adapt. FinTechs should embed risk-based scoring, dynamic verification, and AI-driven threat simulations into everyday operations. True security isn’t static; it evolves with every session, every signal, and every emerging risk. With the right cybersecurity partners like Innowise by your side, you’ll build resilience that only grows stronger with every challenge.”

Maksim Hodar

Head of Digital Transformation, CIO

Trend 8. ESG moves to the core of FinTech innovation

In 2025, FinTechs are weaving ESG features directly into their platforms. Think carbon footprint trackers built into neobanking apps, robo-advisors offering ESG portfolios by default, or payment providers adding climate offsets and eco-labels at checkout. What was once buried in compliance reports is now front and center for users and increasingly, a revenue opportunity.

This shift is powered by a new wave of sustainability APIs from players like Climatiq, ESG Book, and Sustainalytics. FinTechs use them to offer green bonds, run supply chain impact checks, or auto-generate ESG reports for SMEs. And with new rules like the EU’s SFDR and Taxonomy, or the SEC’s climate disclosure requirements in the U.S., ESG integration is no longer optional. So platforms are turning to structured, machine-readable reporting, often tied to automated investment tools or labeled financial products.

What to expect next

FinTechs that serve asset managers, lenders, or procurement platforms will need to support taxonomy-aligned ESG classification and reporting templates. For B2B platforms, expect demand to grow for portfolio-level emissions analysis, sustainability-adjusted credit scoring, and green bond distribution via APIs.

Beyond compliance, ESG will shape product design. Payment companies may offer incentives for low-carbon purchases. Wealth platforms will compete on the quality of complete ESG integration. And risk engines will factor in climate exposure, especially for long-term lending or insurance underwriting.

Turn ESG compliance into your FinTech superpower with Innowise.

Trend 9. RegTech 2.0: automation, explainability, and DORA compliance

In 2025, compliance is going real-time. AI now reviews documents, monitors transactions, and flags inconsistencies automatically, eliminating the need for quarterly audits to uncover risks. On the KYC/AML side, orchestration tools are becoming smarter and more modular to let FinTechs route users through dynamic onboarding flows based on geography, risk level, and behavior.

With regulations like the EU’s DORA, FinTechs now have to prove they can handle disruptions and trace every critical system end-to-end. Regulators want to see why a model approved or rejected something. So tools like TruEra, Fiddler, and Giskard are helping compliance teams audit their ML systems, assign confidence scores, and provide human-readable justifications.

What to expect next

Expect the compliance infrastructure to get treated like software. That means CI/CD pipelines for compliance logic, version-controlled policy updates, and integration testing for onboarding and monitoring flows.

FinTechs operating in the EU or working with EU clients will need to align with DORA requirements around third-party risk, business continuity, and incident reporting. That includes vendor audits, role-based access logs, and near real-time reporting to regulators. And regulators will expect FinTechs to monitor not just what happened, but how quickly they identify it, and what action they took next.

Trend 10. InsurTech: hyper-personalization and usage-based models

In 2025, insurance is embedded in the apps and services people already use. Booking a trip? You’re offered coverage right in the app. Driving for a delivery platform? Accident protection kicks in for that shift, right from the dashboard. It’s all powered by insurance APIs and orchestration layers that plug directly into user flows.

Parametric insurance is gaining ground, where payouts are triggered automatically by real-world data. Smart contracts, oracles, and real-time data feeds do the work. Meanwhile, hyper-personalized policies are becoming the norm. IoT devices now feed data into underwriting engines, whether it’s your driving habits, your fitness levels, or your health metrics.

What to expect next

Expect embedded insurance to become a standard feature in digital platforms, especially those serving mobility, travel, logistics, and freelance work. B2B SaaS platforms will increasingly partner with insurers through API aggregators like. These integrations will let companies offer opt-in coverage during onboarding, purchase, or contract signing without becoming regulated insurers themselves. At the same time, the tech stack behind embedded insurance will need to support real-time risk evaluation, event-based pricing, and instant policy issuance.

InsurTech products will also become more modular. FinTechs building in this space should prepare for more demand around automated claim triggers, sensor-based insurance, and real-time premium adjustments. Regulatory pressure will follow with pricing transparency, data sharing, and payout automation under scrutiny as smart-contract-based coverage expands. InsurTech companies that offer explainability, real-time analytics, and clear user consent flows will have the upper hand.

Trend 11. Continuous authentication: the new standard for FinTech security

In 2025, FinTechs are moving past static credentials and into continuous authentication. Behavioral biometrics now track how someone types, swipes, holds their phone, or even moves their mouse. These subtle patterns create a “behavioral fingerprint” that’s almost impossible to fake. So even if a fraudster has the right login, if their behavior doesn’t match, the system can flag it — and act — mid-session.

This matters most in high-risk flows like A2A payments and open banking, where passwords and OTPs are simply insufficient. Combined with behavioral biometrics, device fingerprinting, and liveness checks, this creates a multi-layered identity system that’s both secure and smooth. The impact goes beyond fraud prevention. These same signals can streamline onboarding, reduce repetitive checks, and ultimately shift KYC from a one-time event to a continuous, adaptive process.

What to expect next

Expect continuous identity to become a core layer of FinTech security architecture. Platforms will move from isolated biometric checks to persistent identity monitoring throughout the user journey. This will include real-time session scoring, contextual re-authentication triggers, and behavioral anomaly detection during transactions or high-risk actions.

FinTechs building in regulated environments will also face pressure to prove identity assurance to partners and auditors. This involves documenting behavioral models, managing user consent, and integrating explainability into risk-based decisions. KYC will evolve into a lifecycle process, not just a point-in-time check. Companies that invest early in device-bound credentials, invisible risk monitoring, and session-level trust models will be able to offer better protection.

Transform your financial services strategy with Innowise

Now that you’ve seen the FinTech trends shaping 2025, the path forward is clearer, but insight alone won’t keep you ahead. Action will.

At Innowise, we don’t just track trends, we turn them into real strategies, tailored to your business. Whether you’re rethinking your roadmap or building from scratch, we’re here to ask the right questions, challenge outdated thinking, and help you move with confidence.

Let’s shape what’s next — together.

Siarhei Sukhadolski

Portfolio manager in Healthcare and Medical technologies

Siarhei leads our FinTech direction with deep industry knowledge and a clear view of where digital finance is heading. He helps clients navigate complex regulations and technical choices, shaping solutions that are not just secure — but built for growth.