FinTech Predictions for 2025 - Pt. 2
As we barrel towards 2025, FinTech Magazine rounds up a series of predictions from industry executives and influencers.
In part two, we look at emerging trends in the credit, Buy Now Pay Later (BNPL), AI and digital wallet spaces.
Marqeta’s SVP Managing Director for Europe and UK CEO, Marcin Glogowski, opens with his hopes for a 2025 where payments turn fully personal…
In 2025 payments will turn fully personal, with tailored credit, rewards, and BNPL at scale
In my opinion, a major global payment trend of 2024 has been hyper-personalisation, with a new generation of customers driving a shift toward personalisation at scale, expecting their financial services to be unique and tailored to individual needs.
Modern consumers want a future where financial services integrate seamlessly into their digital lives and keep pace with their evolving needs.
As a result, we are seeing trends, such as personalised credit offerings and rewards booming.
In an industry with increasingly low consumer loyalty, brands and financial institutions must go beyond traditional interactions.
For example, the recent Marqeta State of Credit report found that of UK consumers who use more than one credit card, 43% confirmed that they would use a credit card more frequently if better rewards were offered.
By moving to a dynamic, rather than set rewards structure, consumers can earn benefits tailored to their spending habits and preferences in real time.
Increasingly with innovations like Buy Now Pay Later (BNPL), consumers are guided to credit options specifically suited to them and their needs.
In 2025, I expect we will increasingly see personalised BNPL payment plan options being offered in real time, often within existing payment apps and products we already use daily. We are also seeing B2B payments emerging as a strong trend.
Ensuring gig workers, sellers and partners get paid efficiently while offering robust expense management and financing. I anticipate we’ll see more demand for innovative B2B payment solutions that enable seamless money management across 2025.
"In 2025, I expect we will increasingly see personalised BNPL payment plan options being offered in real time"
Marcin’s colleague Nicholas Holt, Head of Solutions and Delivery, Europe, at Marqeta, double downs on the rapid innovation Marqeta expects to see next year…
2025 will be a year of rapid innovation in financial services
In today’s digital-first world, traditional payment infrastructure is no longer enough to keep up with the demands of consumers.
The front door of a bank is now an app, digital wallet usage is increasing, and new, flexible services have a growing prevalence on the market.
In 2025 and beyond, customers will continue to drive a shift toward modern services which keep up with the rate of digital and mobile innovation.
The ramifications of changing consumer trends could lead to the traditional roles of banks, such as ATMs and physical branches, disappearing.
To ensure continued customer loyalty, all financial service providers will be forced to innovate and offer consumers the embedded, seamless and instantaneous services that they desire.
Consequently, across 2025, we are likely to see new technology and solutions being offered to reduce unnecessary friction for consumers trying to pay and get paid.
We are already seeing increased demand for Accelerated Wage Access (AWA), with a Marqeta study showing that 74% of gig workers ages 18-34 would be interested in an employer who offered an option to get paid immediately.
As businesses and workers grow tired of cash flow restrictions and having to wait for monthly pay slips in an otherwise instant, digital world. As new services evolve, competition in fintech will be enhanced and the financial industry will be forced to grow and evolve.
"In 2025 and beyond, customers will continue to drive a shift toward modern services which keep up with the rate of digital and mobile innovation"
Elsewhere, Zac Maufe, Global Head of Regulated Industries at Google Cloud, discusses way AI is going to change the game heading into 2025…
Intuitive search will give banks a big boost on reducing data friction. Financial institutions are drowning in data, but struggling to extract its true value. Generative AI-powered intuitive search is the key to unlocking this potential. By streamlining workflows and boosting productivity, generative AI will empower experts to focus on what matters most: deriving insights and delivering better outcomes.
AI agents will usher in an era of productivity in banking. By supporting routine tasks like organising data needed to underwrite loans and quickly understanding claims cases, these digital assistants are poised to not only boost efficiency but also free employees to focus on more complex and strategic work, adding value where only human expertise can.
Multimodal AI will simplify the banking experience for customers. One of the most powerful features of multimodal AI is its ability to connect information from different sources. This means your banking app can access your transaction history, recognise images of your receipts, and even understand your voice commands to provide you with complete and accurate answers to your financial questions.
Financial institutions are increasingly using AI to combat the rising threat of fraud, including AI-generated attacks, which are on the rise. By analysing unstructured data, identifying complex patterns, and automating threat detection, AI will become the ultimate shield against financial fraud, and crucial in detecting and preventing cyber attacks, protecting sensitive customer data, and maintaining trust.
The success of AI initiatives within banks will hinge on one critical factor: data. Banks with robust data platforms will have a significant advantage because they’d be able to aggregate data from various sources, ensure data quality, and make it readily available for AI applications to scale.
"The success of AI initiatives within banks will hinge on one critical factor: data"
Ryan Cailliet, Vice President of Product Design and Research at Amex, concludes by saying that customer-centric design will become table stakes for client acquisition and retention in the credit space...
Customer-centric design will become table stakes for reaching and retaining customers
2025 will mark a definitive shift toward hyper-personalized design approaches across digital platforms. Financial institutions will prioritize creating cohesive, intuitive experiences that seamlessly adapt across devices. With Gen Z's growing financial influence and demand for digitally native experiences, companies will significantly increase investment in customer research and rapid implementation of user feedback. Success in capturing and retaining younger demographics will hinge on delivering consistent, frictionless interactions across all touchpoints.
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