The financial technology (fintech) sector is poised to experience significant transformation in 2025, driven by emerging trends in sustainable finance and artificial intelligence. Industry leaders like Krishna Subramanyan, CEO of Bruc Bond, and Karl Durrance, Managing Director of Stripe ANZ, outlined their expectations for how these sectors will evolve in the coming year.
Krishna Subramanyan highlights the essential role of sustainable finance in responding to the challenges of climate change. It highlights the impact of Article 6.4 carbon markets, which are expected to reduce costs associated with nationally determined contributions (NDCs) by $250 billion per year. “The fintech industry has seen an increased focus on climate change and sustainability in 2024,” he says, noting in particular the absence of leading financial players at COP29 and the 1.8 trillion dollars needed to finance climate adaptation.
Subramanyan predicts that in 2025, the regulatory framework surrounding carbon markets will catalyze blockchain-based carbon tracking and the development of digital environmental, social and governance (ESG) reporting tools. He notes: “The role of financial institutions in climate change goes far beyond direct financing: we shape market signals, influence investment models, and help determine the speed of the global transition to sustainable practices. » The coming year is expected to see a technological shift towards sustainable finance, with fintech organizations around the world potentially making concrete progress on climate action.
Meanwhile, Stripe ANZ’s Karl Durrance provides insight into other technological advancements, marking 2025 as a year of opportunity, particularly for Australian businesses. With interest rate reductions expected in the US and Australia, businesses are expected to focus more on growth than cost control. Durrance cites a Roy Morgan report indicating that almost half of businesses expect their financial situation to improve over the next year.
Durrance predicts that agentic AI will significantly transform business operations. This advanced AI technology, unlike traditional chatbots, enables autonomous workflows that deliver real-time personalized interactions at scale. He predicts: “A Deloitte report predicts that 25% of companies using generative AI will be driving agentic AI projects by 2025, and that this proportion will reach 50% by 2027.” Adopt the capabilities of AI could position businesses at the forefront of technological advancements.
Furthermore, by 2025, Australian companies are expected to expand their presence in the global market. Despite geographical distances, the increasingly borderless world offers Australian businesses new opportunities for global expansion. Stripe’s research suggests that by next year, 66% of businesses worldwide will continue their international expansion, supported by payment innovations that make multi-currency management and cross-border operations easier.
An emerging trend in the payments industry is the growing interest in stablecoins, which promise to reduce cross-border transaction fees. Durrance notes that although only 3% of Australian consumers currently use crypto for transactions, this figure is expected to increase as consumer demand increases. He sees this as a great opportunity for forward-thinking businesses to align with evolving payment preferences.
Subramanyan and Durrance agree that these trends are not independent but are converging to create unprecedented opportunities. As 2025 approaches, the fintech industry is bracing for changes that could redefine business operations and sustainable finance. Companies that quickly adapt to these developments are likely not only to survive, but also to become leaders in the next wave of global commerce.