For Fintech, 2024 Was A Year of Hype, Hustle and Hard Truths. What’s Next In 2025?

go through Catherine Maslova

This year is a year of rapid development and high expectations for the financial technology industry. There was also a lot of discussion──and I learned the cruel and painful truth. It turns out that some trends are more aspirational than practical. That’s what I mean.

Implementation of artificial intelligence: more noise than reality

You may have noticed that artificial intelligence dominates the headlines. Many companies claim they have deeply transformative tools, but what do they really achieve?

In many cases, AI applications are limited to chatbots and call centers. True AI-driven innovation—such as adaptive financial models or instant fraud prevention—remains limited.

For many small companies, the cost of developing and maintaining powerful AI models is prohibitive. Additionally, there are ethical concerns about bias and privacy that prevent widespread deployment in areas such as credit scoring or underwriting. For example, revolution Already introduced Artificial Intelligence Empowerment Budgeting tools, but these tools mostly categorize spending rather than dynamically adapting to complex spending behavior.

So while fintech is an industry with a high concentration of AI leaders, 74% of companies Cross-industry – difficult to expand value.

Greenwashing is equally loud

There is a push for fintech to be sustainable – yet many companies are promoting green products without any real impact on fundamentals. Many much-hyped initiatives – such as the carbon neutrality card – fail to deliver on their claims and rely on vague metrics. No wonder consumers are skeptical.

Although overall, the phenomenon of “greenwashing” is decreasing, New RepRisk data The report shows that by 2024, 36% of financial industry companies will still be related to greenwashing.

Balance expectations with reality

While some platforms effectively integrate payment and lending services, more complex products such as wealth management remain fragmented. Users often encounter clunky interfaces and inconsistent expectations, especially when trying to switch between services. Addressing these challenges requires a commitment to improving user experience through iterative design and feedback loops. for us Bobowe spent months fine-tuning the interface and customer journey to meet customer needs and leverage extensive user feedback from the initial limited launch.

Will regulations stifle growth?

Regulators around the world have increased scrutiny of fintech given the sensitive nature of the industry.

While this oversight is intended to protect consumers in regions such as the EU and the US, complex compliance requirements, e.g. artificial intelligence method and Crypto tax policy The resource requirements for new startups are high. This blocks time and money that could be spent on growth.

Looking ahead: What will happen in 2025?

As we enter the new year, I expect fintech platforms to leverage tools like gamification and content to empower younger generation. They place a high value on gaining financial education and autonomy.

Blockchain and cryptocurrencies are back in the spotlight with the promise of faster and more affordable transactions. While adoption is still in its early stages largely due to regulatory uncertainty, 90% of European financial leaders remain optimistic and expect wider adoption in the future.

Hype aside, the integration of AI will become increasingly important as businesses better understand its capabilities. Additionally, embedded finance will grow as financial services become more deeply integrated into non-financial platforms, allowing consumers to access banking, loans or insurance directly within the apps they use every day. In this regard, cybersecurity will remain a top priority. Millennials and Gen Z are looking beyond “greenwashing,” which will force fintech companies to integrate ESG ratings and impact investing options. In summary, by 2025, fintech platforms that successfully leverage technology while maintaining a perpetual focus and delivering seamless, personalized experiences will thrive.

Catherine Maslovachief business development officer and founding member Bourgeois Bohemia (BoBo)has over 15 years of experience in traditional banking and fintech. She has held senior positions including deputy CEO of a fintech startup and senior vice president of a top 10 market bank. Now, at BoBo, she is bridging the technology gap between private banks, advisors and digital first-generation ultra-high-net-worth individuals.

Illustration: Dom Guzman