Information and Analytics about Embedded Finance, BaaS and Open Banking

Pay by Bank (PBB), also known as account-to-account (A2A) payments, has emerged as a compelling alternative to traditional card-based payment methods, as stated in Fintech Futures. Leveraging banking rails, PBB offers reduced processing fees for merchants and real-time settlement benefits for banks. Despite its promise, widespread adoption has faced hurdles, primarily due to inconsistent user experiences and limited mainstream awareness. PBB’s progress has been steady but slow. Initially, adoption was hampered by the varying quality of open banking APIs, which affected user experiences. As noted in the APImetrics report (2022–23), discrepancies in API performance created significant barriers to widespread usage. However, banks have since recognized the commercial potential of high-quality open banking APIs, leading to notable improvements in performance and reliability. E-commerce has been a surprising early adopter of Pay by Bank, even as it competes with traditional payment options like cards, digital wallets, and Buy Now, Pay Later (BNPL). According to Omdia’s IT Enterprise Insights 2025 Survey, 37% of payment issuers and acquirers prioritize «new payment services leveraging open banking APIs.» Merchants, too, are drawn to PBB’s promise of lower processing fees, as evidenced by early adopters like JD Wetherspoon, Just Eat, Ryanair, and Farfetch. While merchants increasingly see the potential for PBB to reduce costs and eliminate chargebacks, consumer adoption remains a challenge. Changing consumer payment habits is notoriously difficult, with payment behaviors rooted in convenience and familiarity. A famous study by UCL revealed it takes an average of 66 days to form new habits, a hurdle PBB must overcome. Incentives are proving crucial to consumer adoption. For example, Uber offered a 40% discount on future rides to users who signed up for its PBB option, enabled by Stripe’s Link platform. Supermarkets, such as Tesco and Sainsbury’s, could leverage similar tactics, combining loyalty programs with PBB to attract users. Fraud remains a significant barrier to adoption. Authorized push payment (APP) fraud is a growing issue in the UK, prompting regulatory changes. Since October 2024, UK payment service providers must compensate APP fraud victims up to £85,000 within five days. This regulation has driven investments in fraud prevention and compliance. Pay by Bank, with its reliance on multifactor authentication through banking apps, aligns naturally with strong customer authentication (SCA) requirements. While this may create initial friction for users, it addresses security concerns, offering a safer alternative to card payments. As Philip Benton notes, banks could see reduced fraud losses, offsetting potential declines in card revenue. The potential applications for PBB extend far beyond e-commerce. Variable recurring payments could replace direct debits, and small and medium enterprises (SMEs) could benefit from seamless transactions without manual intervention. For local shops, PBB might eliminate minimum spend charges, further enhancing convenience. However, as Benton highlights, collaboration among stakeholders—governments, merchants, and payment issuers—is essential to drive adoption and position PBB as a mainstream payment option. Pay by Bank is poised to transform the payment landscape, offering benefits for both merchants and consumers. With improved API infrastructure, targeted incentives, and robust fraud prevention measures, its adoption is a matter of ‘when,’ not ‘if.’

Open banking has been a buzzword in the financial ecosystem for nearly a decade. Introduced in the EU through the Revised Payment Services Directive (PSD2) in 2015, its goal was to foster competition, enable new payment services, and empower consumers to share their banking data with third-party providers (TPPs), as outlined in Fintech Global News. But has it lived up to its potential, particularly in WealthTech? Open banking started as an EU initiative but quickly gained global traction. Countries like Australia, Nigeria, Brazil, Bahrain, Singapore, and Japan adopted similar frameworks. Even the US and Canada are on the brink of implementation, poised to join the ranks with regulatory frameworks under development. Despite its widespread adoption, the focus often remains on payment solutions, overlooking significant opportunities in wealth management. In WealthTech, open banking promises to revolutionize personalized investing, enabling financial advisors to streamline data collection, provide clearer financial insights, and expand access to high-quality advisory services to a broader clientele. Brian Costello, Head of ByAllAccounts Data Aggregation Strategy and Governance at Morningstar Wealth, acknowledges open banking’s contributions. “It has made positive contributions to WealthTech firms by providing the means for investors to share their account and transaction data with the platform or advisor they select as best suited to help them achieve positive financial outcomes.” Alex Skolar, CPO of Velexa, also highlights open banking’s role in fostering personalized services like portfolio optimization, robo-advisory, and financial planning. “Open banking enables WealthTech companies to seamlessly integrate with banks and other financial institutions, improving collaboration across the financial ecosystem,” he said. The global financial services market reflects open banking’s growth. According to Statista, open banking transactions reached $57 billion in 2023 and are projected to climb further, with 580 billion API signals anticipated by 2027. However, the journey hasn’t been without hurdles. Security concerns, technical integration issues, and region-specific regulatory complexities often stall progress. A survey by PYMNTS found that nearly half of 200 US financial institutions viewed open banking with skepticism, fearing increased fraud risks. Fredrik Davéus, CEO of Kidbrooke, critiques the limited focus on transaction accounts, saying, “Serious use cases still require several aggregation providers for good geographical and institutional coverage. The limitation to transaction accounts has stifled its value to wealth management.” In the US, the lack of a comprehensive regulatory mandate further complicates open banking adoption. Costello explained, “Until investment institutions and accounts are fully incorporated, WealthTech must find other ways to complement open banking, essentially filling the gaps to provide consumers and their advisors with necessary data.” As North America prepares to adopt open banking, it can draw lessons from Europe’s PSD2, the UK’s Open Banking regime, and Australia’s Consumer Data Right (CDR). Costello underscores the value of the UK model: “Key lessons learned from the UK are that a single mandated standard for data access and availability provides clarity but must be inclusive of all use cases.” Davéus recommends accelerating regulations to include all account types and creating robust data standards for seamless interpretation. Similarly, Skolar emphasizes prioritizing security requirements and consumer education to build trust and accelerate adoption. For open banking to reach its full potential in WealthTech, experts agree on key improvements: Broader Scope: Regulators should include investment and pension accounts to maximize wealth management benefits. Standardized Protocols: Simplifying API frameworks and establishing global data-sharing standards will reduce integration hurdles. Enhanced Consumer Rights: Strong authentication and consumer data rights are critical to building trust. As Skolar aptly put it, “Incentives for institutions to implement these frameworks would also promote consumer engagement and trust.” Open banking has undoubtedly reshaped the financial ecosystem, and WealthTech stands to benefit even more with targeted improvements. By learning from global pioneers and addressing current limitations, it can drive innovation, personalization, and accessibility in wealth management.

FlexPoint, a payment technology company, has unveiled an innovative artificial intelligence (AI)-powered system that accelerates Automated Clearing House (ACH) payments, allowing them to be processed on the same day, according to PYMNTS. This marks a significant improvement over the traditional five-day processing time by employing AI to evaluate transaction risks efficiently. The system integrates directly with the Federal Reserve’s FedNow® Service infrastructure, ensuring fast and secure processing of ACH payments, according to FlexPoint’s Thursday (Dec. 12) press release. Historically, rapid ACH transfers were predominantly available to large corporations. FlexPoint’s solution democratizes access to same-day payment capabilities, enabling businesses of all sizes to streamline electronic transactions. “We’re thrilled to bring faster payments to the other 99% of businesses in the United States,” said Victor Lopez, FlexPoint’s founder and CEO. By utilizing an advanced AI-driven risk model, the system extends its rapid payment features to a wider audience, addressing a long-standing challenge for small- and medium-sized enterprises (SMEs). Traditional ACH transfers, though widely used for electronic fund movement, often involve extended delays, which can create cash flow issues for businesses awaiting payments. The system is particularly beneficial for managed service providers (MSPs) and their clients, allowing them to not only push payments out but also pull payments and receive funds the same day. This dual functionality provides businesses with better control over accounts receivable and faster access to working capital. Dustin Bolander, founder of Texas-based Clear Guidance Partners and an early adopter of the FlexPoint system, highlighted its operational benefits.“FlexPoint not only clears payments rapidly, the sync features also save our accounting team a ton of time,”Bolander noted. FlexPoint’s launch aligns with a broader trend in the financial technology (FinTech) sector, where companies are increasingly leveraging AI to mitigate payment risks and enhance transaction speeds. The development follows the Federal Reserve’s July introduction of the FedNow Service, a framework designed to enable faster electronic payments. Founded in 2022, FlexPoint has rapidly grown, reporting a tenfold increase in its payment volume in 2024. As a privately held company, it is among the leading FinTech innovators striving to modernize business-to-business (B2B) payment systems. The introduction of same-day ACH services reflects the industry’s shift toward more efficient financial operations, meeting growing demands for quicker access to funds. FlexPoint’s advancements underscore the transformative potential of AI in payment systems, offering a glimpse into the future of streamlined business transactions.

The financial services landscape is undergoing a significant transformation as generative artificial intelligence (AI) shifts from a conceptual novelty to a practical and commercialized tool. According to Mastercard’s latest Signals report, AI is revolutionizing the banking and payments sectors by enhancing operational efficiency and customer experience, as stated in Fintech Magazine. Generative AI has evolved significantly since its mainstream debut in 2021. Today, financial institutions are focusing on its commercial applications. Microsoft founder Bill Gates describes generative AI as “the most important advance since the graphical user interface.” Meanwhile, OpenAI CEO Sam Altman acknowledges both its potential and associated risks, stating he is “a little bit scared” of the technology his company has pioneered. Mastercard’s Signals report highlights three critical advancements in AI deployment: Informed AI, which combines large language models (LLMs) with external data sources. Perceptive AI, capable of interpreting environmental data. Proactive AI, which operates autonomously with minimal human intervention. Banks and payment providers are leveraging informed AI through two primary techniques: fine-tuning and retrieval-augmented generation (RAG). While fine-tuning involves training AI systems on specific datasets, RAG allows real-time access to external databases. The choice between these methods depends on factors such as data quality, update frequency, and security. In highly regulated industries like finance and law, protecting proprietary information is a priority. Currently, 20% of enterprises employ fine-tuning, while 80% rely on RAG for their AI systems. These technologies have proven critical for tasks such as fraud detection, transaction analysis, and personalized financial advice. For example: Cohere provides RAG capabilities tailored to business needs. Unstructured develops tools to convert unstructured data into RAG-compatible formats. Glean offers an AI assistant that uses RAG to surface relevant information for financial professionals. Generative AI has already made a significant impact: 73% of mortgage lenders consider it essential for enhancing lending processes by incorporating market trends into underwriting. Financial institutions are increasingly using AI for fraud monitoring, portfolio management, and personalized advice. Mastercard has integrated AI into its operations, analyzing 143 billion transactions annually. The company’s Decision Intelligence Pro solution evaluates over a trillion data points each year to detect fraudulent activity, achieving an average 20% improvement in fraud detection, with some cases seeing a 300% increase. Despite its benefits, AI implementation in financial services faces technical and regulatory challenges. Banks must ensure that AI operates on a zero-retention basis to protect sensitive data. Poor data quality and insufficient security measures can lead to errors and breaches. Proactive AI systems are gaining traction, automating tasks with minimal human oversight. Currently, 10% of large companies use AI agents, with 50% planning to adopt them within the next year. These systems streamline processes like portfolio management and customer onboarding, reducing manual effort and improving efficiency. Startups like Adept AI, which secured $350 million in funding in 2023, and Imbue, backed by Amazon’s Alexa Fund, are developing autonomous AI solutions tailored for financial operations. Beyond fraud prevention, AI is transforming customer interactions. Mastercard’s Dynamic Yield product delivers hyper-personalized experiences across digital platforms, generating 371 billion impressions across 450 brands in 2023. AI-powered assistants are automating routine tasks like report generation, enabling financial professionals to focus on high-value activities. Mastercard’s Signals report underscores the transformative potential of AI in reshaping the financial services sector. As adoption accelerates, informed, perceptive, and proactive AI are poised to redefine operational efficiencies, enhance fraud prevention, and deliver personalized customer experiences.

Roadzen Inc. (Nasdaq: RDZN), a global leader in AI-driven solutions for insurance and mobility, has announced a strategic partnership with Motive, a leading AI-powered Integrated Operations Platform, according to Fintech Futures News. This collaboration will provide Motive’s customers with access to roadside assistance and towing services, enhancing fleet safety and reducing downtime. Motive’s platform serves over 120,000 customers across industries such as transportation, logistics, construction, and field services. Their AI-powered tools integrate driver safety, fleet management, equipment monitoring, and spend management, giving businesses a unified system to optimize operations. With over one million vehicles in its customer base, this partnership aims to deliver significant savings and operational improvements. Roadzen’s National Automobile Club (NAC) will provide 24/7 roadside assistance nationwide, with services billed per incident. This innovative model ensures no monthly fees for customers, who only pay when the service is utilized. NAC, a Roadzen subsidiary, operates a network of over 20,000 professional service providers. According to industry data from the American Trucking Association and FleetNet America, approximately 20-30% of U.S. commercial trucks require roadside assistance annually due to frequent breakdowns every 10,000 miles. By partnering with Motive, Roadzen aims to address this challenge with enhanced efficiency and cost savings. “While our north star is to prevent accidents through instant and precise AI-powered risk detection, it is just as important we protect drivers and reduce risk when accidents do happen,” said Jai Ranganathan, Chief Product Officer at Motive. Rohan Malhotra, CEO of Roadzen, added, “The integration of AI-driven insights with Motive’s robust fleet management platform represents a significant leap forward for driver safety. By leveraging advanced AI algorithms, we can predict and proactively respond to vehicle breakdowns and emergency situations, minimizing downtime and operational disruptions.” The new roadside assistance feature will be available starting December 16, accessible via Motive’s Driver App. Customers can easily request assistance without any ongoing subscription fees. Roadzen Inc. specializes in transforming auto insurance with AI technologies, focusing on accident prevention, fair premiums, and expedited claims. Recognized as a top AI innovator by Forbes and other leading publications, Roadzen operates globally with headquarters in Burlingame, California. Motive empowers businesses with AI tools to enhance safety, productivity, and profitability in industries ranging from transportation to energy and manufacturing. Notable clients include Halliburton, KONE, and Maersk.

Škoda and Parkopedia have expanded their in-car payment services by introducing a new notification system that enhances the convenience of connected driving, according to FF News. Drivers will now receive helpful prompts when approaching locations that support in-car payments for parking and fueling. This enhancement builds on their existing collaboration, which already simplifies in-car transactions. The newly introduced “nudging” functionality provides real-time notifications on the vehicle’s infotainment screen, alerting drivers about nearby locations where they can complete parking or fueling payments seamlessly. This system leverages Parkopedia’s comprehensive and precise parking data, ensuring accuracy in enabling smooth transactions. The functionality will be available on fuel-powered Škoda models starting from Q2 2024, including popular models such as the Fabia, Kamiq, Karoq, Kodiaq, Octavia, Scala, and Superb. Additionally, notifications for parking payments will be integrated into the all-electric Škoda Elroq upon its release, with future Škoda EVs like the Enyaq receiving updates in 2025. The service aims to reduce the stress and distractions associated with traditional payment methods, such as finding operational parking machines or dealing with card payment issues. Subtle prompts on the infotainment screen ensure that the driving experience remains smooth and safe. In-car payments are becoming increasingly important for drivers. According to the Parkopedia Global Driver Survey, 59% of European drivers want the option to pay for parking via their in-car media systems. Parking has emerged as the most requested in-car payment feature, underscoring the frustration of outdated payment methods. Markus Dohl, VP of Sales & Business Development Europe at Parkopedia, emphasized the benefits of the collaboration: “New cars are now packed with a host of useful features, so it can be difficult for drivers to find the connected services they want while focusing on driving. Our new feature developed with Škoda simplifies the payment process, intelligently informing drivers when convenient in-car payment services are available in their surrounding area or at their destination with onscreen notifications and prompts. This ensures that drivers can easily access Škoda’s valued connected services, bolstering its strong brand satisfaction and customer loyalty.” Martin Handl, Škoda Technical Project Lead & Product Manager, added: “Škoda is proud to offer a range of user-friendly features that take the stress out of drivers’ everyday lives. Our latest feature with Parkopedia offers the same value, enabling drivers to get the most from their Škoda whenever they need to make vehicle-based purchases behind the wheel. From our driver feedback, we know that paying for parking and fuel can be a tedious and stressful task, which is why we’ve worked with Parkopedia to streamline this process with this innovative and valuable solution.” This collaboration between Škoda and Parkopedia highlights the evolving landscape of automotive technology, where connected services are reshaping the driver experience. By reducing friction in everyday transactions, Škoda continues to strengthen its commitment to convenience, customer satisfaction, and brand loyalty.

The financial services sector is undergoing rapid digital transformation, fueled by advancements in artificial intelligence, automation, and the expansion of open banking, as highlighted in The Fintech Times. According to a recent report by The Business Research Company, the fintech-as-a-service (FaaS) market has experienced remarkable growth, increasing from $327.51 billion in 2023 to $386.39 billion in 2024 at a compound annual growth rate (CAGR) of 18%. The market is projected to reach $745.53 billion by 2028, growing at a CAGR of 17.9%. The acceleration of FaaS adoption is attributed to several key factors: Technological Innovations: Integration of AI and machine learning to enhance services such as financial advice and personalized customer experiences. Use of blockchain and cryptocurrency for secure, transparent transactions. Expansion of Open Banking: Collaboration between banks and third-party providers via APIs fosters innovation and convenience. Globalization of Services: The shift towards cross-border financial solutions drives demand for FaaS. Focus on Security and Compliance: Adoption of regulatory technology (regtech) to ensure data privacy and regulatory compliance. Additionally, trends like embedded finance, growth in API ecosystems, sustainable finance initiatives, and evolving payment solutions are reshaping the financial landscape. A rise in mobile and internet penetration has driven increased adoption of digital and mobile banking services. FaaS supports this trend by enabling businesses to provide sophisticated online banking solutions. For example, a report by Finder.com revealed that 93% of Brits used online banking in 2022, with 10% planning to open digital-only accounts in 2023. By 2028, nearly 22.6 million Brits (43%) are expected to hold digital-only bank accounts, further driving the FaaS market’s growth. Companies in the FaaS sector are investing heavily in innovative technologies to gain a competitive edge. In April 2023, Valley National Bank launched a fintech innovation platform powered by NayaOne. This platform integrates with multiple financial services, offering synthetic data tools that allow secure testing of novel fintech solutions. Such innovations exemplify the transformative potential of FaaS in delivering customized, user-friendly financial services. The growth of the FaaS market offers significant advantages for businesses and investors: Market Insights: Detailed statistics and trends to inform strategic decisions. Informed Decision-Making: Data-driven approaches reduce risks and enhance planning. Competitive Advantage: Analysis of competitors and market share helps businesses stay ahead. Tailored Solutions: Customized reports cater to specific needs and objectives. Global Expansion: A comprehensive perspective on regional and international markets. Prominent players driving the FaaS market include: Stripe Inc. Visa Inc. Mastercard Incorporated Fiserv Inc. Global Payments Inc. Coinbase Global Inc. Plaid Inc. Revolut Ltd. These companies leverage cutting-edge technology to deliver scalable and efficient financial services globally. As AI, automation, and open banking reshape the financial services industry, the fintech-as-a-service market is poised for continued growth. With technological advancements and increasing consumer demand for digital banking solutions, FaaS is set to become a cornerstone of modern finance.

In a bid to spotlight fintechs driving positive change in sustainability, social impact, and financial inclusion, FinTech Futures interviewed Antonio Soares, CEO of Dock, and Gelson Junior, Paralympian and CEO of Parabank. Together, they are making strides toward enhancing disability inclusion in financial services across Brazil. Dock, a South American payments and banking technology provider, has spent over two decades democratizing access to financial services. Parabank, a Brazilian challenger bank, prides itself on being the “first digital bank in the world made with, by, and for people with disabilities.” The partnership between Dock and Parabank was announced in September when Parabank adopted Dock’s private-label card processing platform to introduce credit and prepaid debit cards designed for people with disabilities. “We understood that this joining of forces was important because it is estimated that there are 1.5 million people with disabilities without banking access in Brazil,” says Soares. He adds that traditional financial institutions often fail to recognize or meet the specific needs of disabled individuals. Gelson Junior echoes this sentiment, emphasizing that their collaboration “combines innovation with accessibility.” The partnership is already yielding results, with the introduction of braille cards and specialized credit lines for rehabilitation. Parabank, leveraging Dock’s technology, is evolving into a financial hub for physical and financial rehabilitation, offering services like financing for prosthetics, complex medical treatments, and higher education support. Soares believes financial inclusion must go beyond simply offering banking services: “Banking alone is not inclusion. If we want truly inclusive economic development, we must go beyond promoting digital banking services, and the main challenge today is credit.” Soares sees potential in Brazil’s instant payment system, Pix, developed by the central bank in 2020. While it won’t replace credit cards, Pix offers a low-cost, direct alternative for those without traditional credit access. Looking ahead, Dock and Parabank aim to expand their impact. “We want to take this partnership to new markets, increasing social impact and financial inclusion in other Latin American countries,” says Junior. Plans include further innovations in financial education and technologies focused on humanizing services and empowering customers to manage their finances. Awareness of disability inclusion in financial services is on the rise globally. For instance, the UK’s Project Nemo, launched this year, aims to equip fintechs with tools to foster greater inclusion for individuals with disabilities. Joanne Dewar, head of Project Nemo, remarked: “Fintechs are ideally placed to address disability inclusion, given their role as architects of the future of financial services.” Dock and Parabank’s efforts reflect a growing trend within fintech to champion inclusivity and create meaningful solutions for underserved communities. Their work stands as a testament to the transformative power of collaboration and innovation in financial services.

Artificial Intelligence (AI) is rapidly becoming a critical tool for governments and businesses aiming to combat economic crime while saving costs, as outlined in Fintech Global News. With its ability to streamline Anti-Money Laundering (AML) processes, enhance compliance efforts, and improve fraud detection, AI is poised to revolutionize how organizations approach financial crime prevention. Joseph Ibitola, Growth Manager at Flagright, emphasized that traditional AML systems often generate a flood of false positives, consuming significant human resources and escalating costs. AI, he asserts, transforms this landscape by making AML processes faster, smarter, and more cost-effective. He noted, “Traditional AML compliance systems are not just costly, they’re often inefficient, leading to a flood of false positives that require significant human resources to investigate. AI changes the game by making these processes faster, smarter, and more cost-effective.” Machine Learning (ML) algorithms enable AI to analyze transactional patterns, identifying suspicious activities with greater accuracy. This reduces false positives and allows compliance teams to focus on genuine threats. Flagright, for instance, uses AI-driven solutions to streamline AML processes for financial institutions, offering faster and more accurate insights at a fraction of traditional costs. AI-powered tools can process massive datasets, such as tax records and cross-border transactions, at unparalleled speeds, helping governments detect fraud, money laundering, and tax evasion more efficiently. Ibitola highlighted AI’s potential in predictive analytics, suggesting it could preemptively identify vulnerabilities in systems before bad actors exploit them. “Looking to the future, AI’s ability to predict and prevent financial crime could be transformative,” Ibitola explained. “By deploying AI-driven risk assessments, institutions can take preemptive measures, avoiding costly breaches and penalties.” TD Bank’s recent compliance shortcomings illustrate the potential benefits of AI solutions. According to 4CRisk.ai, the bank could have avoided penalties with an AI-driven Compliance Map solution. This tool provides real-time insights into compliance gaps, mapping external regulatory requirements to internal policies and controls. 4CRisk stated, “Instead of missing out on huge chunks of transaction monitoring, TD Bank could’ve used the Compliance Map product to quickly assess gaps in their AML program. AI-driven compliance mapping flags weak or incomplete controls almost instantly, instead of relying on manual processes.” The firm emphasized that such tools not only enhance compliance but also reduce costs and maintain regulatory standards effectively. South African RegTech firm RelyComply highlighted AI’s role in reducing compliance costs by accelerating investigation and reporting processes. The firm noted that AI models trained on historical behaviors can instantly identify suspicious activities, funneling resources toward genuine threats. RelyComply stated, “AI’s predictive analytics may save institutions cash further down the line…housing financial data and using it wisely through automation is the key to more streamlined and precise investigations.” Jon Elvin, Strategic Risk Advisor at Saifr, emphasized AI’s transformative potential in three areas: Drawing actionable insights from massive datasets. Enhancing cross-jurisdiction investigations. Improving customer experiences while safeguarding privacy. Elvin concluded, “AI can help thwart financial crime and is often seen as a significant accelerator for financial crime fighters, but it is also true that bad actors will assuredly experiment with AI to shape their tradecraft and probe weaknesses. It is the proverbial ‘cat and mouse’ journey of measures and countermeasures.” AI also opens doors for collaboration between the public and private sectors. Shared platforms could enable real-time information sharing, creating a unified front against financial crime. As Ibitola stated, “Governments and businesses that embrace AI-driven solutions today will be better equipped to handle the challenges of tomorrow.” AI’s ability to reduce costs, improve efficiency, and enhance accuracy makes it an invaluable asset in the fight against financial crime. While challenges remain, the potential for transformative change is undeniable.

As 2024 winds down, The Fintech Times takes a moment to reflect on a year marked by both challenges and growth in the fintech sector. With insights from industry leaders, the publication examines the defining trends of the past year and looks ahead to what 2025 may bring. Global fintech investment fell significantly in 2024, signaling a cautious approach from investors amid heightened interest rates and geopolitical uncertainty. KPMG’s Pulse of Fintech report revealed that investment dropped to $51.9 billion in the first half of the year, marking the lowest six-month period since 2020. Despite this decline, payments dominated funding, attracting $21.4 billion globally. Regtech proved to be a growth standout, surpassing its 2023 investment total with $5.3 billion secured in just six months. Additionally, artificial intelligence (AI) remained a major focus for investors, with its potential to drive cost-efficiency and enhance competitiveness in a high-cost market environment. While funding tightened, fintech companies continued to demonstrate resilience by adapting to shifting market dynamics. Collaboration between fintechs and traditional financial institutions gained traction, driven by the need to navigate regulatory complexities and respond to evolving consumer expectations. Fintechs played a crucial role in expanding access to financial services, particularly for underserved communities, fostering financial inclusion and resilience. However, challenges persisted. Sustainability-driven innovation remained a critical area of focus, while risks such as data privacy and financial crime demanded proactive solutions. As 2025 approaches, fintech leaders are strategizing to overcome the hurdles of the past year and seize new opportunities. The emphasis on innovation, collaboration, and sustainable growth is expected to continue shaping the industry. Throughout December, The Fintech Times will feature exclusive perspectives from fintech CEOs and experts, highlighting the innovations and strategies that promise to define the coming year in their «Views from the Top» series.