The beginning of a new year is always a chance to look ahead and determine what the biggest trends will be over the next 12 months.
The financial industry is one that is going through an incredible transformation right now, particularly with the rise of a few types of technology that are revolutionizing the way that people and businesses manage their money.
It is important to keep up with the latest trends so that you can make smart financial decisions, so this post will outline the main trends that will dominate the financial industry in 2025. Interested? Keep reading to find out more.
AI
As with most industries, AI is having a huge impact on finance right now, and this shows no sign of slowing down in 2025. AI is becoming a vital tool for financial organizations because it can be used in so many different ways, including AI-powered chatbots, hyper-personalized financial advice, fraud detection, and credit risk analysis, just a few examples.
Businesses in the financial industry should keep pace with the AI developments in 2025 and look out for ways to utilize the tech so that they can modernize and streamline.
Open Banking
Open banking will be another significant trend in 2025, and one that is changing how people manage their money. This is a financial services model that enables banks and other institutions to provide customers with their data so that it can be shared with third-party providers.
This creates a more innovative financial ecosystem and allows for the development of new financial products and offerings, such as a personal financial management platform that provides an overview of finances across different banks and accounts. Open banking is a model that benefits both the consumer and financial institutions, so it will certainly play a key role in 2025 (and beyond).
Embedded Finance
You are now also seeing many non-financial platforms integrating services like payment processing, lending, and instance. This is called embedded finance and is set to be a big trend in 2025.
Online stores, social media platforms, and ride-sharing apps are utilizing embedded finance as they can help to create additional revenue streams while also enhancing the customer experience by increasing convenience and providing faster access to key services.
Sustainability
Sustainability will also be a big trend in finance (and other industries) in 2025. Financial institutions have environmental, social, and governance (ESG) criteria that they must meet in order to align with regulatory expectations.
Additionally, consumers are becoming increasingly eco-aware, so they want to make sure that the financial services they utilize are green. This can involve investing in green energy projects, green bonds, and sustainability-linked loans, just a few examples.
These are a few of the biggest financial trends to watch in 2025. The financial industry is going through remarkable change right now, particularly with the development of advanced technologies. These are the trends that will shape the year ahead and change how people and businesses manage their finances.