Dana Lunberry, Head of Data Strategy at SBS (formerly Sopra Banking Software).
Data analytics, fuelled by advanced AI, will grow as a core executive priority for banks and financial institutions.
Although banks have ample data, they have historically lacked the systems and processes to leverage it effectively. However, recent technological advancements have changed this landscape. In the coming year, we’ll see financial organisations investing more heavily in modernising their data infrastructure.
For many, this will include enhancing data management capabilities so that AI-driven tools, such as Generative AI and Machine Learning models, can effectively personalise customer experiences, optimise risk management and automate compliance—enabling a shift from reactive data handling to proactive, predictive decision-making.
AI-powered data warehouses and real-time analytics platforms now allow institutions to derive deep customer insights rapidly, scaling and adapting services at speeds unimaginable a decade ago. This evolution will enable banks to transform decades of legacy information and new data streams into innovative products, services and experiences, creating a significant competitive advantage.
Michael Seaman, CEO and Founder at Swipesum
As we look forward, 2025 is shaping up to be a game-changer in the world of FinTech.
One notable trend is the growth of embedded payments, which are turning software companies into full-fledged ‘payments companies.’ Merchants are now handling transactions, reporting and support within their platforms, completely removing the middleman (distributor banks, ISOs, etc.) This shift has been simmering for years, but now it’s at a rolling boil with new entrants raising massive capital to snatch market share from Stripe and legacy players. At Swipesum, we see embedded payments as more than just an efficiency upgrade; they’re reshaping commerce with seamlessly integrated, scalable, cost-effective solutions. SaaS platforms aren’t stopping with payments; they’re embedding lending, insurance, banking and other financial tools, making financial services ubiquitous.
Another huge leap for 2025? Network tokens. By swapping out sensitive card data for dynamic tokens, merchants gain significant advantages. These tokens provide higher authorisation rates and real savings on interchange fees, which make up the lion’s share of merchant services fees. FinTechs are leading the charge by building this tech into mobile wallets, gateways and payments infrastructure. Network tokens boost approval rates with real-time updates, while Visa reports a fraud reduction of nearly 30% and interchange cost cuts by up to 10–25 basis points in some regions. For merchants, it’s a no-brainer: ditch the outdated systems and embrace a more secure, efficient future.
Meanwhile, neobanks are shaking things up, especially among community banks and credit unions. Younger, tech-forward consumers and business owners just get digital banking with fewer fees and seamless UX. For old-school banks, closing another physical branch may feel like a dagger to the heart, but really—who needs it anymore? Convenience and speed rule the day, and agile FinTechs offering bundled banking services have made traditional banks feel like relics. Adapt or become irrelevant; it’s that simple.
And then, there’s decentralised finance (DeFi). Stripe’s recent US$1.1 billion acquisition of stablecoin platform Bridge signals that DeFi isn’t just a curiosity, it’s a force. Integrating stablecoin capabilities is set to streamline cross-border payments, and Stripe’s move likely hints at similar plays across the market. We can expect more strategic acquisitions as legacy players scramble to keep pace.
As always, the financial services sector is charging ahead: faster, smarter and more customer-centric than ever. At Swipesum, we’re not just keeping up; we’re riding the wave. Working alongside FinTechs and merchants to deliver top-tier solutions at the lowest possible cost. We’re very aligned with FinTechs making waves as it prioritises the customer journey every step of the way.
Eric Shoykhet, CEO of Link Money
Here are my top predictions for 2025:
– Real-time payments adoption will increase globally; a significant portion of consumers will spend only what they have in their bank account and avoid going into debt.
– FinTechs and traditional banks will collaborate more to drive innovation. As traditional banks look to increase revenue streams and product offerings without jeopardising security, they will partner with open banking platforms that provide a high level of security and with access permission from account holders. With the steady increase in open banking adoption, innovators will capitalise on opportunities to create new applications for spending, savings, investments and more.
– Consumers will increasingly adopt open banking technology … without even knowing it! They will have increased control of their personal financial data and can grant and revoke access at will; fraud will be reduced by the same technology that protects merchants from fraud; and consumers can better manage their cash flow and avoid unnecessary debt without fees, interest or payment plans.
– Unbanked and underbanked populations will benefit from FinTechs that leverage mobile banking and a different system of credit, enabling financial inclusion.
– Banking-as-a-Service and embedded finance will be integrated into other types of platforms, including entertainment, travel and e-commerce. Additionally, FinTech will grow its partnerships to provide financial services by leveraging APIs.