We’re already accustomed to FinTech ━ we use it every day, whether it’s checking bank accounts on our smartphones or chatting with an AI chatbot about a common financial problem.
The industry has changed dramatically in recent years as marketers have seen the opportunity to take advantage of customer-facing services and deliver them quickly and efficiently.
However, profitable market development does not guarantee complete success. FinTech is currently facing issues with data security, regulatory compliance and service personalization as its sudden expansion has taken most businesses by surprise, leaving important aspects behind.
Additionally, FinTech has recently been included as an area of expertise in cryptocurrency and blockchain. Considering the number of users who learn how to buy bitcoin Thanks to decentralized exchanges, the sector presents a great opportunity for FinTech to change stock prices and improve. Unfortunately, things are not that simple.
So, what are the expectations of FinTech for 2025? What about in the near future? Let’s find out.
Fintech and the problem of data security
Even though the fintech industry is supposed to protect customer data, the truth is that FinTech companies are highly exposed to data breaches.
This is why some of the largest companies in the industry, such as Equifax, JP Morgan Chase, and Korea Credit Bureau, have suffered massive losses due to phishing, ransomware, and other vulnerabilities.
FinTech companies should not overestimate their security coverage and take every precaution to minimize the effects of a possible attack. This is why they must implement the following elements:
- Cloud computing for updating and scalability;
- Multi-factor authentication and biometrics;
- Low-code development platforms;
- Innovative security infrastructures;
- AI detection and blockchain cryptography;
Fintech can mitigate Web3 adoption
Many technology enthusiasts are waiting for the Web3 world because it could allow users to regain control of their data.
Currently, in Web2 infrastructure, we all have to exchange our data with companies in order to allow us to use their products and services. This not only exposes our information to cybersecurity risks but also compromises our online privacy.
Some elements of Web3 are already there ━, like the metaverse. However, its impact on the fintech sector will change the perspective on how users can control and manage their assets and income.
For example, in the Web3 world, users will benefit from faster payments through automation. At the same time, FinTech Companies can personalize and adapt content on loans or BNPL, according to the desires and needs of the person. Finally, there will be far fewer errors and suspensions due to human error.
Fintech must work on its regulatory compliance
With the industry expanding, it can be difficult to navigate all the regulatory compliance guidelines.
FinTech includes everything from payment apps, crypto exchanges, and robo-advisors, but its flexibility has made it easier to include technologies like machine learning and predictive behavioral analytics.
For example, cryptocurrencies and blockchain are unregulated, and official financial bodies and governments often view their use as risky.
Users have therefore found ways to avoid the fees and compliance costs imposed by regulations, thereby exposing the industry to various risks.
Navigating compliance for FinTech is a time-consuming process. Every country has its own set of rules, from GDPR to wiretapping law, so businesses must ensure adequate compliance before operating in order to set the record straight for a secure future and transparent.
Fintech can benefit more from artificial intelligence
Artificial intelligence was the highlight of 2024, with the rise of ChatGPT in the market and new innovations. Therefore, this could be a significant step forward for FinTech, as its benefits include:
Less spending on fraud prevention and customer service;
- Better customer experience for tech-savvy customers;
- Improved algorithms that help personalize customer experiences;
Any financial company that prioritizes security, investments, productivity, and customer service should leverage AI and even ML to improve its cybersecurity and brand image.
Fortunately, there are many FinTech niches where AI is welcome. Using AI, the digital bank could improve its offerings in terms of lower interest rates and fees.
The demand for robo-advisors is also growing rapidly, as the RegTech field requires automated compliance software.
Fintech must learn to retain its customers
While we don’t think FinTech companies need to keep their customers engaged online, the truth is that every business on this planet needs proper marketing.
This builds customer loyalty and attracts new ones as they notice the organization’s efforts to maintain their interest in the industry. At the same time, interacting with users online is key to building loyalty.
Keeping customers interested as a FinTech company means considering developing a gamification system in which they combine the benefits of your services with fun games.
Customizing push notifications is also a great idea, but having a user-friendly UI/UX is essential for easy navigation.
Fintech can improve thanks to blockchain
A growing number of businesses have begun to adopt blockchain technology to streamline their growth and increase their opportunities.
Blockchain is therefore far from being a strange tool for marketers and entrepreneurs, which is why fintech companies can take advantage of this emerging ecosystem.
Some of the features of blockchain include transparency, immutability, and decentralization. This makes it the ideal network solution to remove third parties from every transaction and support digital ledgers.
Since every transaction is visible on the blockchain, user activity is transparent. At the same time, decentralization secures user data, while immutability ensures that no one can modify or delete the data once recorded on the blockchain.
Therefore, such networks could solve many of the challenges of our current systems, thereby transforming FinTech into a secure and innovative technological field.
What do you think about the future of Fintech?
FinTech will be the future of financial services when technologies such as machine learning, artificial intelligence and blockchain improve transactions and our relationship with money.
Although heavily challenged by lack of regulatory compliance and data security, the industry has enormous potential to mitigate Web3 adoption.
At the same time, artificial intelligence can significantly benefit FinTech through automation and data analysis, while blockchain can secure data and make it immutable.