Free NewsletterGet the hottest Fintech Switzerland News once a month in your InboxIn 2025, the fintech industry will be shaped by heightened regulatory scrutiny, the rise of embedded finance and widespread adoption of artificial intelligence (AI). These trends present both challenges and opportunities for industry stakeholders, experts say.These predictions, shared by industry leaders from organizations such as Microsoft, EY, and Backbase, are featured in Mambu’s annual partner predictions report. The report compiles key forecasts on the trends expected to shape the industry in the year ahead and beyond, offering strategic guidance to stay ahead of the curve.Regulation intensifiesIn 2025, concerns about risk and regulation will grow as AI-driven financial advice and embedded finance become global. Against this backdrop, financial institutions will need to adopt robust governance to protect customers, and ensure compliance.Alexis Valdez Gonzalez, Manager, Risk and Compliance at Mambu, highlighted the urgency to implement platforms designed with security and compliance at their core, especially with the EU’s AI Act and Digital Operational Resilience Act on the horizon.Bauke Sprenger, Partner, Financial Services Consulting, PwC Netherlands, emphasized the EU’s Financial Data Access (FIDA) regulation as a transformative force for fintech. Unlike previous regulations focused solely on payment data, FIDA extends to customer information across loans, mortgages, insurance, and pensions, accelerating the shift toward open finance.This regulation is expected to reshape financial experiences by intensifying competition for relationships and introducing new business models.Embedded financeIn 2025, embedded finance will continue to gain momentum, transforming the industry by enabling non-bank platforms to integrate financial services seamlessly.Tyler Pichach, Head of Banking Strategy, Worldwide Financial Services, Microsoft, expects significant advancements in the integration of financial services over the next two to three years, leading to enhanced customer engagement and new revenue streams opening up for businesses. This trend may be accelerated by the advancement of generative AI (genAI), where conversational commerce may be embedded across customers’ daily lives and work activities.Marcin Glogowski, SVP, Managing Director Europe and CEO UK, Marqeta, noted the steady increase in non-financial providers offering financial services. He expects this trend to accelerate over the next year as consumers increasingly demand hyper-personalized financial products from the brands they love.With embedded finance continuing to grow at double-digit rates, Irena Pauls, Senior Manager, Strategic Projects Mambu, highlighted the importance of cloud-based platforms. Businesses must adopt these technologies to gain the agility and scalability needed for long-term success, she said.Alternative lendingThe third trend highlighted in the report is alternative lending
Lun. Feb 3rd, 2025
