Nov 12 / Bhupesh Naranware & Viktoria Soltesz

2025 Fintech: Practical Innovations Shaping the Future of Finance

Think of innovations as extremely versatile; new, creative ways to transact money are constantly emerging. Keeping up with these advancements is a challenge, as the landscape changes rapidly. This article highlights some of the main innovations driving this sector—innovations that deserve closer attention from both businesses and users to effectively plan their payment and banking flow.

Fintech innovations will continue to make financial services more accessible, practical, and efficient than ever in 2025 as well. These advancements are driven by a demand for straightforward, secure, and effective ways to manage money and financial transactions. Rather than offering isolated features, the focus is on delivering real, tangible value by addressing user needs directly.


Embedded Finance 

Embedded finance is one of the major shifts on the horizon. This approach integrates financial services into non-financial platforms people use daily. Instead of requiring a separate app to apply for storing your funds in a wallet, or make a payment, users will be able to do so within apps they already trust and use. For businesses to stay relevant, building solid financial partnerships that support secure, efficient transactions—without burdening users with extra steps—will be essential. The ease of payment integration, combined with the ability to seamlessly access different services, will shape the future.


Real-time Payments 

Real-time payments are also changing the game. Soon, a single app will be enough for people to transfer and receive funds, apply for loans, or get insurance. Businesses that fail to adopt Real-time payment will risk losing relevance with their customer this is a common view among payment experts globally. 


Open Finance 

Another significant shift is open finance, which expands beyond open banking. Open finance lets consumers share a broader range of data with third-party providers, covering financial products like pensions, insurance, and mortgages. This creates a more personalized user experience but also requires businesses to strengthen data protection and compliance measures to safeguard this level of information sharing.



Artificial Intelligence (AI) and Machine Learning (ML) 

Artificial intelligence (AI) and machine learning (ML) are also taking centre stage, automating tasks like customer identification, fraud detection, and risk assessment. These technologies offer faster, more accurate services, but businesses must balance automation with security, ensuring these tools enhance service without compromising data integrity or fairness. Responsible use of AI and ML will be crucial as these tools become standard in the industry.

The adoption of AI brings many positives. Companies are reducing workforce needs for tasks that used to require human involvement, which now can be done in seconds. However, the risk with AI in payments remains. AI operates based on data fed to it, which can sometimes impact customers who could have become loyal if handled by humans. AI cannot replicate the empathy humans offer, so there is still a way to go before we can rely entirely on it—perhaps in the next 5–10 years, things will be different.


Decentralized Finance (DeFi)

Decentralized finance (DeFi) is another growing area. Usually built on blockchain, DeFi enables users to access financial services directly, bypassing traditional banks. This setup can potentially lower fees and increase transaction transparency but also brings certain risks. Without traditional intermediaries, users need to approach DeFi services with a clear understanding of their work and potential security concerns. Companies offering DeFi services must grasp regulatory demands to ensure compliance and stability.


Peer-to-peer (P2P) Lending 

Peer-to-peer (P2P) lending is also gaining traction, allowing individuals to borrow from others at competitive interest rates that banks don’t typically offer. This approach appeals to investors looking to grow their money faster.