The future of fintech is expected to be marked by significant expansion, with the global fintech market projected to reach $1,152.06 billion by 2032.
In 2025, the fintech sector is expected to see increased investment, technological advancements and regulatory changes.
Some key trends that may shape the future of fintech include:
Investment
- M&A: Fintech M&A (mergers and acquisitions) activity is expected to increase as companies consolidate to navigate regulatory pressures. M&A is a key way for fintech companies to grow and become market leaders
- IPO: An IPO is when a company sells shares to the pubic for the first time. Fintech IPOs (initial public offerings) may increase as the market improves.
- AI: AI investments in banking and financial services are expected to increase. This can help to improve customer service, streamline workflows, and make better risk predictions.
Technology
- AI: AI will be used to improve decision-making, customer experience, and operational efficiency. Generative AI can analyse finance data, virtual assistants can provide personalised interactions and in regards of underwriting, AI can help predict the likelihood of costly litigation
- Blockchain: Blockchain will be used to create new cross-border payment use cases
- Passkeys: Major banks may roll out passkeys at scale, which could be a game-changer for the industry
- Chatbots: AI-powered chatbots will help users make financial decisions
Regulation
- Data transparency: There will be increased regulatory focus on data transparency
- ESG reporting: There will be more standardisation across ESG reporting processes
Other trends
Decentralised Finance (DeFi) will continue to mature, cashless payments will continue to grow and BNPL (Buy now, pay later) usage is projected to increase.
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