The fintech industry is growing as we speak, with more new technologies emerging every day. Pandemics and lockdowns have influenced the way we interact with finances, bringing most services fully online. Customers are expecting to see products that are tailored to their specific needs and available to them 24/7.

Neobanks are blooming everywhere, providing fully digital financial operations streamlined using AI tools and machine learning. AI chatbots and financial advisors are also becoming increasingly popular, making traditional banking systems look slow and redundant. Let’s delve deeper into the biggest fintech trends that will shape the industry this year.

1. Neobanks and Digital Lending

If you need to get financial support fast, online banking is your best choice. After the pandemic, a lot of financial institutions switched to online services, making sure the majority of operations can be done without attending their physical branches. This trend went even further, and neobanks emerged answering the growing demand of people for quicker, more efficient financial services. The main benefits of neobanks are:

• Better interest rates and reduced operational costs.
• Cheaper and faster services due to AI and machine learning.
• Latest technologies with top-notch security systems.
• Accessibility to a wider range of customers across the globe.
• Faster loan application review time and data-driven decision-making.

2. Green Banking

Sustainability has always been a subject of great concern for customers and company owners alike. In 2025, we’re expecting to see financial institutions develop environmentally conscious products and services that cater to a wide range of clients. In general, there’s a shift towards digital payments that are more eco-friendly compared to traditional methods. More and more companies are working towards reducing their carbon imprint and waste production. As customers are becoming more worried about sustainability, financial institutions have become more responsible with how they impact the environment.

3. AI and Machine Learning

In 2025, financial experts are predicting a boom in AI implementation all over the fintech industry. A survey conducted by the Cambridge Centre for Alternative Finance (CCAF) revealed that 77% of respondents believe that Artificial Intelligence tools will possess an increasingly important role in their business in the upcoming few years. 64% of surveyed business owners expect to increase their revenue by using AI tools in process automation, customer service, risk management, and various new products.

As far as financial institutions are concerned, AI is already helping them to gather data about the customer’s spending habits, cash accounts, investments, savings, and credit accounts to help create products and services tailored to their clients’ needs. AI tools also can:

• Catch human errors.
• Streamline repetitive tasks and operations.
• Manage client data.
• Help create management strategies.
• Control the overall quality of banking.

AI chatbots and financial assistants are also becoming increasingly popular due to their ability to assist users with various finance-related tasks. These tools are accessible 24/7, helping businesses provide high-quality services to users worldwide.

Biometric Authentication

Cybersecurity has always been an issue in the fintech industry. According to experts, companies that rely on password protection will lose popularity as more and more clients are giving preference to financial institutions that use biometric identity verification. This type of identification is easy to use and gives quick access to users’ accounts and financial information, all the while providing top-notch security and high-quality customer service. 

According to a survey, 93% of respondents were concerned with the safety of their financial accounts, while emails and social media accounts took second and third places. This means that businesses will invest in improving their security systems and, according to cybersecurity experts, biometric authentification is much safer than PINs and traditional password protection.

A Customer-Centric Approach

Fintech companies are coming up with new ways to attract customers and build a loyal following using technological advancements. According to Statista, we already have 8.4 billion voice assistants, and this number is continuing to grow. Voice command is enabling customers to check their financial accounts, buy items, and communicate with AI assistants. Voice biometrics is also expected to rise in popularity. Roughly 45% of consumers are interested in banking using voice commands along with voice assistants that aid them in their financial operations.

Conclusion

This year, more and more companies are offering online services to conduct all financial operations. This concerns the whole fintech industry as digitalization is growing in demand continuously. Neobanks are on the rise offering lower interest rates and better services due to machine learning and AI tools. These online financial institutions don’t have physical branches, relying heavily on automation and Artificial Intelligence algorithms. At the same time, cybersecurity is a subject of a growing concern among the majority of users. Experts predict that biometric authentication will slowly replace traditional password protection, ensuring that customers can safely access their accounts by using voice commands and AI assistants.