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Fintech is a growing sector that develops computer programs, technology, and products for banking and other financial services. Individuals use fintech products for personal or business banking and investing. Fintech for the financial services industry encompasses analytics, improving customer services, and expansion into new models such as decentralized financing like Blockchain.
As an article on KPMG notes, “According to the Pulse of Fintech H2’21, total global fintech funding reached $210 billion across a record 5,684 deals in 2021.”
While Fintech investments slowed in 2024, with total global investment declining from $62.3 billion to $51.9 billion, there is still a focus on advancement, particularly related to artificial intelligence (AI) and regulation technology (Regtech).
Areas of Financial Product Trends
Self-Service
As customers become increasingly comfortable banking, shopping, and investing without professional interactions, self-service options have grown in number and sophistication. ATMs have advanced beyond dispensing cash and now offer account transfers, bill payments, and other transactions. Interactive Teller Machines (ITMs) combine the functions of an ATM with the option to connect with a live teller using video conferencing. The teller can answer questions or assist with opening a new account.
Fintech is also churning out self-service options for retail, hospitality, and entertainment, which are likely to continue expanding. These include ticketing kiosks for airlines, movie theatres, and concerts, as well as self-check-out at stores, and self-check-in at hotels. Banks and companies with previously cumbersome processes or ones that required working with a professional, such as getting a mortgage or other loan, are developing more self-service options.
Financial Wellness
The World Economic Forum “finds that people seek out one-stop shops that can provide comprehensive, unbiased advice on all their financial needs, supported by long-term plans around major life events.”
This holistic approach incorporates financial education and community-based support and may drive adaptations to how financial advisory services are delivered.
AI and Personalization
Fintech will see artificial intelligence (AI) advancements for customers, employees, and companies in the financial sector. It can help personalize and simplify the customer experience by learning about customer preferences and tailoring services and interactions. AI will also play a vital role in automating financial advisor and banker tasks, fraud prevention, and regulation compliance.
“Where humans would need to spend ages tracking regulatory updates and making sure the right rules are being applied, AI can do the job in no time, with complete accuracy,” a Thompson Reuters article notes.
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Regulation
Regulation Technology (Regtech) is becoming increasingly necessary as regulations around consumer protection, cryptocurrency, and AI become stricter and more complex. Regtech helps companies better understand the rules and how they apply to their services and products. It then ensures that companies are following everchanging regulations cost-effectively and efficiently.
Analytics to Inform Strategy
Advanced computer programming can analyze big data and build predictive modeling faster and better. This information informs strategies and decision-making for individual finance companies and the industry. It helps improve current products and identify the need for new business models.
Enterprise Resource Planning (ERP) software takes data across business processes to streamline tasks, including human resources, customer data, accounting, and supply chain management. It also allows companies to see the big financial picture and identify areas for saving costs or increasing revenue.
Blockchain
Blockchains allow for the digital tokenization of currencies where financial transactions happen without a centralized bank. The security and speed of these transactions make them likely to continue to grow while regulations work to keep up. 2025 will likely include asset tokenization and the increased use of smart contracts for automating loans and other services. Countries and banks will launch digital currency options for their citizens and customers, and sharing between these systems will increase.
Blockchain is an increasingly viable option for more secure and faster transactions. Thompson Reuters also notes, “Blockchain also allows for the integration of smart contracts (self-executing, self-verifying contracts with controls and compliance embedded) into the financial ecosystem.”
The rapidly evolving landscape of fintech is driving innovation and reshaping how we interact with money. In the coming year, expect a blend of advancements in digital convenience, personalization, and automation. This progress will continue to be followed by increasingly complex regulations and the technology to manage it. Ultimately, it is an ongoing balance of security, accessibility, and efficiency.
The post A Look at the Top Fintech Trends for 2025 appeared first on AFRO American Newspapers.
