Fintech trends 2026: technologies that will change the banking industry
In 2025, financial technologies will become more than just an addition to banking — they will become its driving force. Modern banks are at the centre of a major transformation: customers expect instant, personalised and secure services, regulators expect transparency and accountability, and the market dictates speed and innovation, in this context, the fintech trends of 2025 will become the foundation of the future of banking, and they will determine what the digital transformation of banks will look like in the coming years.
In this article, we will look at which new technologies in the financial sector — from AI to Web3 — will change the rules of the game, how banks will adapt to new requirements, and where opportunities are opening up for those who are ready for change.
Artificial intelligence and automation in finance
As we enter a new era of finance, it is no longer enough for the banking sector to simply digitise its processes — it needs to do so intelligently. That is why AI in banks and automation have become key components of innovation in finance.
AI in scoring and lending
Artificial intelligence helps banks assess more accurately who to grant loans to. Whereas previously decisions were made based on just a few indicators — such as income level or credit history — AI now takes much more into account: how a person uses their account, how often they make purchases, even how they behave online.
This allows banks to make decisions faster, reduce the risk of default, and offer customers fairer terms.
Automation of KYC/AML processes
Traditional customer identification (KYC) and anti-money laundering (AML) procedures are often time-consuming and costly. Thanks to automation — the use of machine learning, facial or document recognition, and transaction analysis — banks can verify customers much faster, reduce costs, and control risks more effectively.
Chatbots and personalised service
Customers expect quick responses and a personalised approach, and banks are increasingly responding through chatbots, virtual assistants and automated advisors. They work 24/7, process large volumes of requests, offer personalised recommendations and free up human resources for more complex tasks.
These areas are just the beginning. Automation and AI are changing not only the front offices of banks, but also the core of their activities, opening up new opportunities and creating new challenges at the same time.
Open Banking and PSD2 as a standard
One of the important stages of the digital transformation of banks was the concept of open banking — open access to financial data via API. This allows banks to securely share information about accounts and transactions with licensed fintech companies, creating new services for customers. In 2025, open banking will take a new direction: more complex integrations will emerge, partnerships between banks and fintech companies will expand, and users will receive more personalised financial products and services. PSD2 and other regulatory requirements ensure the security of these processes, making them reliable and transparent.
Further expansion of the API economy
Thanks to the API economy, banks are no longer just providers of financial services. They now integrate third-party services and products, allowing customers to access various financial functions in one place. For example, a customer can simultaneously use credit offers, insurance and payment solutions from different providers, but through a single bank. The API allows the bank to act as a coordinator of this ecosystem, ensuring secure data exchange and management of various services without performing all operations itself. This makes the bank a platform where customers get more opportunities and flexibility.
Examples of new services based on open data
Thanks to open data, banks and fintech companies can create services that combine information from various financial sources and make it user-friendly. For example, a platform can display all of a customer's accounts, loans, investments, and insurance products in one place, regardless of which banks they are held at. Based on this data, the service can analyse the user's expenses, income, and financial habits, offer personalised strategies, and suggest the best savings or lending options. Importantly, the customer has full control over their data and decides for themselves which services to connect and who to grant access to. This approach makes finances more transparent, convenient, and personalised.
The role of partnerships between banks and fintech companies
In modern banking, banks are increasingly choosing to collaborate with fintech companies rather than compete directly with them. Fintechs bring speed, innovative technologies and a convenient user experience (UX), while banks provide trust, licences, stable infrastructure and a large customer base.
Collaboration enables the creation of new business models, such as BaaS (Banking as a Service), where a bank provides its financial services to third-party companies via API. This means that, for example, a shopping app can immediately offer payment services or loans without users having to open a bank account directly.
Such partnerships help to accelerate innovation, expand the range of services and build an ecosystem where the bank becomes a platform rather than just a place to store money — a key element of the future of banking.
Embedded Finance
Embedded finance is the integration of banking or financial functions directly into non-banking services. For example, in a mobile app for online shopping, you can immediately get a loan, take out insurance, or use buy now, pay later (BNPL) payment options without having to go to a separate banking website.
This innovation in finance is changing the way customers interact with money: financial services are becoming an invisible but accessible part of everyday services, saving time and making the experience more convenient. For businesses, this also means new sources of revenue and the opportunity to attract customers through integrated financial products.
How it works
Imagine you are buying something online: at the checkout stage, you are offered instalment payments (BNPL), immediate insurance or additional credit — without having to go to the bank's website. This financial service is 'built into' your purchase.
Types of services
- BNPL (Buy Now Pay Later) — allows you to buy now and pay later in instalments.
- Integrated insurance — when insurance is offered where the customer already interacts with the product.
- Payment options in non-financial applications — for example, in taxis, food delivery, and marketplaces.
This approach allows businesses to offer finance where it is convenient for the user, while enabling banks or fintechs to reach customers who might not otherwise turn to them in the usual way.
DeFi and Web3 in banking
The world of finance is no longer limited to traditional banks — a new generation of blockchain-based technologies is emerging: Web3 finance and decentralised finance (DeFi), which are shaping the future of banking.
How DeFi is changing traditional banking
DeFi does not have traditional intermediaries. Lending, investing and trading take place through smart contracts, i.e. programmes that automatically execute the terms of an agreement without the involvement of a person or bank. This allows you to:
- reduce intermediary costs,
- increase process automation,
- significantly speed up financial transactions.
Potential applications for banks
- Asset tokenisation — banks can issue tokens representing a share of real assets, such as real estate, securities or commercial projects. Tokens can be bought, sold and exchanged in a digital ecosystem, opening up new investment opportunities for customers.
- Smart contracts for lending or insurance — the terms of agreements are executed automatically: for example, a loan can be repaid automatically upon receipt of payment, and insurance payments are triggered without additional formalities.
- Web3 banking — clients manage their assets not only through traditional banks, but also through decentralised applications that integrate with fintech services, digital assets and open financial ecosystems.
For traditional banks, this means changing their approach: instead of simply being "owners of money," they are becoming platforms that manage trust, infrastructure, and risk in the new era of Web3. Banks are transforming into coordination centres for customer interactions with digital assets and decentralised services, maintaining security and control in a world where finance is becoming more open and automated.
IoT in finance
The Internet of Things (IoT) is not just about smart homes or fitness trackers. In the financial world, IoT is becoming a source of data that helps create new services, personalised offers and even automated financial solutions.
How it works
The IoT is a network of devices that are connected via the internet and can exchange data without human intervention. Every device, from cars to refrigerators, can transmit information that banks or insurance companies use to create better products.
Examples of applications
- Insurance. Sensors in cars record driving style, and insurance rates are calculated individually: safe driving = lower policy cost. The same applies to sensors in homes, which can reduce the risk of flooding or fire.
- Payments. Smart devices can make purchases or pay for services on their own. For example, a coffee machine will order coffee when supplies run low, or an electric car will pay for charging without your involvement.
- Cost control. Devices track resource consumption (electricity, water, fuel) and send recommendations or even initiate automatic payments.
Why is this important for banks
Such scenarios open up a new level of interaction with customers for banks and fintech companies. Thanks to IoT, they can better understand user behaviour, offer more accurate financial products, and integrate finance into people's everyday lives — literally "wherever they are."
Other trends shaping fintech in 2025+
In addition to those listed above, other important areas will be decisive for the financial sector:
Cybersecurity as a key issue
Given the rise of cyber threats and new fraud models, Zero Trust security and AI protection are becoming mandatory. Regulators expect banks to implement measures that ensure not just compliance, but proactive customer protection.
ESG and green finance
Innovation in finance also includes sustainable development. Transparent mechanisms for lending to environmental projects and green investments are all becoming part of the future of banking.
Cloud technologies for scalability
Banks are rethinking their infrastructure and switching to cloud-native solutions to be flexible, fast, and cheaper. The cloud makes it possible to adapt to changes, experiment with new services, and scale up without big capital costs.
Conclusion
Banks are becoming technology platforms. At the heart of their new role is not just a treasury for money, but an ecosystem of services, partnerships and data. The future of banking is not competition between banks and fintechs, but their integration: those who adapt faster to fintech trends 2025+ and introduce innovations in finance will gain market leadership.
FAQ
What are the main fintech trends in 2025? —
Artificial intelligence and automation, open banking, embedded finance, DeFi and Web3 finance, IoT in finance, as well as cybersecurity, ESG and cloud technologies.
How will artificial intelligence affect the banking industry? —
AI will enable banks to assess risks faster, automate processes, provide personalised services and significantly improve efficiency and security.
Is Web3 being implemented in traditional banks? —
Banks are already exploring asset tokenisation, smart contracts and DeFi models, which opens up new models of customer interaction and new sources of revenue.
What examples of Embedded Finance are already in operation? —
Buy now, pay later (BNPL) services, financing goods at the time of purchase, integrated insurance in the payment process — these are all examples of embedded financial services that work through non-financial platforms.
Want to understand fintech trends better? Write to us, and Integrity Vision experts will advise you in detail – marketing@integrity.com.ua.
