Fintech trends are shaping the future of the finance industry, and the value of the worldwide fintech mobile app market will reach $305B by 2025. This is a great jump compared to 2010 when the market value was only $11 million.
This difference has created excitement among young fintech startups and developers building software for them. Top fintech speakers also highlight these changes and share insights into the industry’s growth.
Today, many fintech apps are already a hit in the market. However, several new trends are being introduced rapidly, making the competition tougher.
Today, in this blog, we’ll know some emerging trends in the fintech industry. But before that, let’s learn a bit about Fintech.
What is Fintech?
Fintech, as the name suggests, is the combination of finance and technology. The fintech industry includes all software, technology, or apps that make the most profitable use of technology to encourage finance in more forms than one. Fintech apps are utilized for various functions.
This includes cross-platform integrations, biometric authentication, analytics and data visualization, multiple payment gateways, multi-user collaboration, and even the integration of solutions like an Athlete Management System for tracking financial aspects of sports management.
9 FinTech Trends for 2025 and Beyond
Fintech software development services can give you the best outcomes only if you use the latest fintech trends, so here are some of the major ones:
a. Embedded Finance
As the name indicates, embedded finance integrates financial solutions like insurance, lending, and payment processing into existing non-financial apps and OS. The search volume related to the word’ embedded finance’ has arisen.
This is because organizations are gradually discovering the advantages of the digital revolutionization of fintech systems.
Businesses should be conscious of precise types of embedded finance. Exploding Topics’ report shows that the embedded fintech market is estimated at $63.2B and is supposed to grow to over $248B by 2032.
b. Neo Banks
A neobank is a type of direct bank that operates only through the Internet and does not have any traditional bank networks.
A neobank is a breed of a new-generation bank with no physical branch and is purely Internet-based. Such banks offer mobile-led financial services for payments, remittances, credit, etc.
In addition, these banks enable users to deposit funds, withdraw cash, and, in fact, offer loans and lending. This implies that the services are very much the same as what traditional banks offer.
Supermarkets would greatly help Neo banks, but getting banking service help is not possible because they all lack a banking license, so standalone operations are impossible.
c. Regtech Solutions
Regtech solutions are a subset of fintech solutions that use technology to help manage various regulatory processes. The major functions of such solutions are monitoring, reporting, and enforcing regulations.
RegTech applies mainly to the technological control of regulatory processes, especially in the finance sector. Such processes may take several forms, such as regulatory monitoring, compliance, and reporting.
RegTech encompasses organizations that provide regulatory compliance services to businesses using cloud computing technology through software. This, however, is referred to as regulatory technology.
d. Robotic Process Automation
RPA stands for Robotic Process Automation. Today, RPA is improving operational performance. It involves using software programs to perform certain human actions, such as navigating through systems, retrieving and manipulating data, and carrying out routine functions.
It provides high-cost benefits and high efficiency over traditional methods. In the past few years, RPA has grown at a rate of 63% and has become an indispensable asset for organizations seeking to improve their workflows and reduce operational costs.
e. CBDCs
Central bank digital currencies or CBDCs refer to the digital forms of a country’s fiat currency that are issued and regulated by the central bank of that respective country.
CBDCs, unlike the often expensive and unstable assets that are cryptocurrencies, are very stable and are now gaining popularity as the best means of making payments, even online.
As for the enterprises, they can employ CBDCs as a payment method that is fast, safe, and within the regulatory framework, mitigating the risks posed by virtual currencies while also allowing efficient and quick global payments.
f. Buy Now, Pay Later (BNPL)
Buy Now, Pay Later (BNPL) is a financing product that allows a consumer to purchase an item and repay it through several smaller payments, known as installments. However, BNPL services are typically more user-friendly and easier to avail of than other credit products, owing to the very low or zero interest rates applicable to them.
The BNPL sector, however, has expanded rapidly, reaching a market size of 120 billion dollars in two years. This growth curve presents new avenues for businesses to increase sales and customer satisfaction via flexible payment alternatives.
g. Digital Identity Verification
With the advent of technology, biometric recognition systems, multiple levels of identification, and encryption, digital identity verification has become foundational in the security of financial institutions and businesses. These measures help prevent fraud, hacking, and trespassing, and thus, they can be employed to secure monetary exchanges.
Managing a digital identity is secure and less hassle than using physical identification cards. As a result, businesses can protect risk-prone client data without risking a decline in the quality of service offered. By utilizing advanced identity verification tools, companies can ensure that client information is accurately verified and safeguarded, further enhancing both security and efficiency.
h. Artificial Intelligence
This application of artificial intelligence is different from what we know. It involves the transformation of the finance industry, where there are end-to-end automation processes, enhancement of services provision to customers, and putting information at the center of all processes.
AI technologies come in different variations, such as – intelligent virtual assistants, fraud detection platforms, and analytical systems.
Use these simple measures to cut unnecessary spending and save hundreds of dollars daily for the emerging Decacorn businesses. As a consequence, AI expectations increase, leading to more development within the industry, hence the changes witnessed.
Key Takeaways on Fintech Trends
Present-day society has placed financial technology, or fintech, as one of the most significant and expanding areas of interest.
Current trends in software development and financial solutions, such as neo banks, RPA, AI aspirations, and even digital ID verification systems, are spearheading the way, changing how businesses and consumers connect with payment systems.
Companies wishing to survive in this fast-moving environment are required to monitor these and ensure they are always ahead of the competition.
When it comes down to implementing specific businessman’s ideas into a custom-made fintech software solution, ScalaCode is the safe choice.
You can hire software developers from us, as we are known for providing the highest-quality Fintech App Development Services.
If you are looking for a trustworthy ally to transform your fintech dream into reality, ScalaCode has the skills and attitude to make it happen.
English
French
German
Russian
Spanish