76% of Financial Institutions Have Already Embraced AI

76% of Financial Institutions Have Already Embraced AI

According to a recent report from Acrew Capital, in partnership with Money20/20, artificial intelligence (AI) is rapidly reshaping the financial industry, as stated in FF News. The report reveals that 76% of financial institutions have already integrated AI into their operations, signaling a major shift in how the sector leverages technology. At Money20/20 USA, industry experts Micky Tesfaye, Head of Content at Money20/20, and Lauren Kolodny, Co-founder of Acrew Capital, discussed the findings of the report. They emphasized AI’s accelerating role in fintech, from customer-facing solutions to fraud prevention. Kolodny highlighted the significance of Money20/20 as a partner in this research, stating, “Everybody attends.” The conference serves as a global hub where startups, banks, regulators, and investors exchange insights on emerging trends. Tesfaye noted that since the rise of ChatGPT, AI has dominated discussions at their events, reinforcing the need for structured analysis on its adoption. The report analyzed 221 leading financial institutions, tracking AI-related developments since January 2023. The findings include: 76% of financial institutions have launched AI initiatives. 51% have incorporated AI into customer-facing products. A total of 376 AI initiatives have been introduced in less than two years. Kolodny emphasized that AI is no longer in the experimental phase—it has become an integral part of financial services. Tesfaye echoed this sentiment, stating that AI’s adoption is happening at a much faster pace than many anticipated. AI is changing the competitive dynamics of the financial sector. Unlike previous tech waves, AI’s success depends on access to vast datasets, giving legacy institutions a key advantage. However, Kolodny pointed out that startups still have opportunities in areas where incumbents are slower to innovate. Two significant gaps identified in the report include: Agentic Payments: While digital assistants powered by AI are common, few companies have developed solutions that allow these assistants to execute payments autonomously. Gen-AI for Fraud Detection: Only 7% of companies surveyed currently use generative AI for fraud prevention, despite a 700% increase in deepfake-related fraud. This presents a major opportunity for AI-driven startups. Tesfaye highlighted the diversity of exhibitors at Money20/20 USA, including major players like OpenAI, Anthropic, and NVIDIA, alongside early-stage AI startups. This reflects the broad spectrum of companies shaping the future of AI in finance. As AI adoption accelerates, financial institutions are shifting from a purely competitive stance to one of collaboration. While incumbents are integrating AI at scale, challenges in compliance and fraud detection provide room for startups to partner with established players. Kolodny noted that regulatory clarity will be a key factor in AI’s future growth, particularly in sensitive areas like fraud prevention. As regulations evolve, AI’s role in finance is expected to expand even further. To encourage continued exploration of AI trends, Acrew Capital and Money20/20 have released a public database that allows fintech professionals to analyze AI adoption data. Kolodny encouraged industry participants to leverage these insights, while Tesfaye emphasized that this report is designed as a living resource to track AI’s evolving role in financial services. Despite claims that fintech is losing momentum, Kolodny stressed that AI is breathing new life into the industry. “AI has the potential to fundamentally rebuild financial infrastructure,” she said, and the data supports this transformation. Tesfaye concluded with a key takeaway: AI in financial services is not a distant future—it’s already here.

Key Trends Shaping Auto Finance in 2024

Key Trends Shaping Auto Finance in 2024

The auto finance industry is undergoing significant changes, driven by technology, economic pressures, and shifting consumer behaviors, according to Prodigital. Drawing insights from key industry events such as the AFSA Vehicle Finance Conference, AFS East, and reports from leading sources like McKinsey, Auto Finance News, Experian, and Moody’s, we highlight seven critical trends shaping auto finance today. 1. The Rise of Fintech and Digital Transformation Fintech is revolutionizing auto finance across various aspects of the loan lifecycle, including: AI-driven loan approvals and alternative data usage Digital loan processing Enhanced purchase transparency Streamlined dealer connections Improved fraud prevention and servicing The industry is embracing these advancements to enhance efficiency and customer experience, especially in challenging financial times. 2. Subprime Market Fluctuations Auto loan delinquencies were anticipated, and their rise is now evident. Industry experts, as discussed in a recent webinar on auto finance threats, note that subprime borrowers are often reliable due to their dependence on vehicles for daily life. However, major subprime lenders like American Car Center and U.S. Auto Sales have closed, forcing dealers to seek new lending partners. According to Auto Finance News, these developments continue to reshape the subprime lending landscape. 3. Rising Prices, Interest Rates, and Loan Payments Experian’s Q1 2023 State of the Automotive Finance Market Report states that the average new car payment has reached $725. Additionally, Edmunds reports that nearly 15% of drivers who financed a car late last year are paying over $1,000 monthly. High interest rates are keeping payments elevated, making it harder for non-prime borrowers to upgrade vehicles, despite falling used car prices. 4. Repossession Trends Although delinquencies are increasing, non-prime borrowers are making significant efforts to avoid repossession. Losing a vehicle can mean losing a job, particularly in areas without reliable public transportation. With federal student loan repayments resuming, industry players are preparing for potential impacts on auto loan delinquency rates. 5. Longer Loan Terms as a Solution To help borrowers manage payments, auto lenders are extending loan terms. Reuters reports that new car loans spanning 73-84 months accounted for 34.4% of the market in 2022, up from 28.6% in 2018. While this approach provides short-term relief, it also increases the risk of borrowers being underwater on their loans, a trend likely to persist amid high interest rates. 6. Enhanced Agent Coaching and Training Auto finance leaders are grappling with training and retaining loan servicing agents. As voiced at multiple industry conferences, common challenges include ensuring agents communicate effectively and follow compliance guidelines. AI-driven solutions such as real-time agent assistance, automated call notes, and AI-based call scoring are becoming essential tools for improving efficiency and agent performance. Additionally, creative incentives—like Girl Scout cookies, as highlighted in a recent webinar—can play a surprising role in motivation. 7. Delinquencies on the Rise Moody’s reports that auto loan delinquencies reached 7.3% in Q2 2023, surpassing pre-COVID levels. CNN further cites Moody’s warning that delinquencies could peak between 9% and 10% in 2024, compared to 7% pre-pandemic. With both auto and credit card payments under strain, the industry is bracing for continued financial stress among consumers. Auto finance professionals must stay vigilant in an evolving landscape influenced by fintech innovations, shifting market dynamics, and economic pressures. By leveraging technology, adapting repayment structures, and proactively addressing delinquencies, industry players can navigate these trends effectively.

Kuady and BridgerPay Partner to Revolutionize Payment Solutions in Latin America

Kuady and BridgerPay Partner to Revolutionize Payment Solutions in Latin America

Kuady, a cutting-edge digital wallet solution focused on financial inclusion, has joined forces with BridgerPay, a global omnichannel payment orchestration platform, to enhance digital payment solutions for merchants across Latin America, as stated in Fintech Global. The partnership aims to improve the region’s digital payments landscape by offering businesses a frictionless and localized payment experience. Merchants in Chile, Peru, Mexico, Ecuador, and Argentina will now have greater access to streamlined and secure transactions through this collaboration. By integrating Kuady’s user-friendly digital wallet with BridgerPay’s platform, businesses will be able to optimize their payment processing systems, ultimately improving customer satisfaction and transaction efficiency. Launched in July 2024, Kuady is a next-generation digital wallet designed to revolutionize financial management for both merchants and users. The app offers a wide range of payment methods and financial services, simplifying transactions and fostering financial inclusion across the region. Meanwhile, BridgerPay connects businesses to over 1,000 integrated payment providers, allowing them to streamline and optimize payment processing through a single platform. Kuady CEO Lorenzo Pellegrino expressed excitement about the partnership, stating: “We are thrilled to integrate Kuady with BridgerPay, extending our secure and seamless payment solutions to even more businesses across Latin America. This partnership aligns with our mission to empower merchants with innovative financial tools that drive growth and customer satisfaction.” BridgerPay’s PSP Partnership Manager, Matthew Boundy, echoed Pellegrino’s enthusiasm, emphasizing the benefits of the collaboration: “At BridgerPay, we are dedicated to offering merchants the most flexible and effective payment solutions. By integrating Kuady, we are enhancing our platform’s ability to serve businesses in Latin America, providing them with a powerful tool to drive growth and improve the customer payment experience, and better approval & conversion rate that increases consumer acquisition.” With this partnership, Kuady and BridgerPay are set to transform digital payments in Latin America, offering merchants and consumers enhanced security, convenience, and efficiency. This collaboration marks a significant milestone in the evolution of financial technology in the region.

IBM Predicts Transformative Impact of Generative AI on Banking in 2025

IBM Predicts Transformative Impact of Generative AI on Banking in 2025

IBM has unveiled its 2025 Outlook for Banking and Financial Markets, shedding light on the evolving landscape of the banking sector, as highlighted in Fintech Global News. This annual forecast, published by the IBM Institute for Business Value, highlights the profound impact generative AI and emerging technologies will have on financial institutions worldwide. According to the study, generative AI is set for widespread adoption across the banking industry. While only 8% of banks had implemented the technology systematically last year, a staggering 78% are now integrating it in a more strategic and tactical manner. This shift signifies a transition from experimental pilot programs to full-scale deployment, underlining a broader movement towards agentic AI. As banks refine their service offerings, this new approach is expected to redefine customer interactions and operational efficiencies. The report also notes an increasing divide in financial performance among banks as they restructure their business models. Successful execution of these new strategies will determine the industry’s leaders, distinguishing them from competitors who fail to adapt. Additionally, 60% of surveyed banking CEOs recognize the importance of embracing automation-related risks to maintain a competitive edge. The integration of AI-driven automation is seen as crucial for optimizing operational processes, enhancing customer service, and strengthening risk management frameworks. Consumer preferences are also shifting toward digital banking solutions, with over 16% of global clients now favoring a fully digital-first banking experience. This trend signals a transition from conventional digital services to more advanced offerings, such as embedded finance solutions and tailored advisory services for high-net-worth individuals and small-to-medium enterprises. Commenting on the findings, Shanker Ramamurthy, IBM Consulting’s Global Managing Director for Banking & Financial Markets, stated: “We are seeing a significant shift in how generative AI is being deployed across the banking industry as institutions shift from broad experimentation to a strategic enterprise approach that prioritizes targeted applications of this powerful technology. As banks and other financial institutions around the world gear up for a pivotal year of investing in transformation, technology, and talent, we anticipate their efforts coalescing around initiatives using generative AI to level up customer experience, boost operational efficiency, reduce risks and modernize IT infrastructure.” IBM’s report is based on insights from C-suite executives, bank customer behavior trends, and economic data spanning key global markets, including the United States, Canada, the European Union, the United Kingdom, Japan, China, and India. The study provides valuable guidance for financial institutions navigating the dynamic shifts in the banking landscape.

What’s Ahead for Fintech in 2025? Insights from Money20/20 USA

What’s Ahead for Fintech in 2025? Insights from Money20/20 USA

elegant 2025 new year invitation wallpaper with shadow effect vector The fintech industry is gearing up for an exciting 2025, with artificial intelligence (AI) and open banking at the forefront of innovation. At Money20/20 USA 2024, FF News spoke with Tracey Davies, the event’s President, to gauge industry sentiment and learn about key trends shaping the future. Two major themes dominated the discussions this year—generative AI (Gen AI) and open banking. According to Davies, AI is now a ubiquitous force in financial services, with companies moving from exploratory phases to real-world implementation. A report by Acrew Capital highlights that 76% of financial services firms have already launched AI initiatives, with major players such as JP Morgan, Block, and Chime leading adoption in the U.S. While open banking remains a crucial topic, Davies suggests that AI is likely to be the defining force in fintech’s future. Money20/20 USA provides a platform to showcase how AI is moving beyond the hype into practical applications. Davies observed a palpable sense of energy and optimism at this year’s event, a stark contrast to the economic challenges that loomed over the industry in 2023. Innovation and partnerships were key discussion points, with attendees showing a reinvigorated confidence in fintech’s growth prospects. A major highlight was the rise in female representation—47% of speakers at the conference were women. Money20/20’s Rise Up and Amplify programs continue to push for diversity and inclusion, and Davies celebrated standout sessions like Sunday Night Live, which featured Lynn Martin from the New York Stock Exchange and Sarah Fryer from OpenAI. While fintech is a global industry, regional trends shape the focus of discussions. In Asia, mobile money and digital wallets remain dominant topics, while Europe leads the way in open banking. In the U.S., AI and open banking take center stage, alongside an increased regulatory presence. Notably, prominent figures such as SEC Chair Gary Gensler and former CFPB Director Rohit Chopra participated in the event, reflecting heightened regulatory interest in fintech worldwide. In a significant reveal, Davies announced the launch of the Money20/20 Global Awards in 2025. This program aims to set new standards for industry recognition, with independent validation from top experts. Although details remain undisclosed, Davies assured that the awards would bring a fresh, innovative approach to celebrating fintech excellence. Global entries open in April 2025, with more updates to come. Money20/20 USA returns on October 26-29, 2025, promising another year of groundbreaking insights and networking opportunities. With AI and open banking driving transformation, and a global awards initiative on the horizon, the fintech industry is poised for an exciting year ahead.

AI Poised to Transform the Payments Industry in 2025

AI Poised to Transform the Payments Industry in 2025

Artificial intelligence is set to play an increasingly visible role in the payments industry in 2025, helping merchants process transactions more efficiently and offering consumers new ways to pay, according to analysts and academics who study financial technology, as stated in Payments.dive.  While AI has already reshaped payment processing behind the scenes—particularly in fraud detection—its impact on everyday transactions is expected to grow significantly. From streamlining checkout experiences to enhancing fraud prevention, AI-powered solutions are set to make payments faster, more seamless, and more secure. AI’s influence on payments will be especially noticeable at checkout, where it will enable a broader range of options, including «buy now, pay later» (BNPL) services. By analyzing transaction history and creating instant risk profiles, AI can help merchants offer alternative payment methods without added friction, said Davi Strazza, president of North America for Adyen, a Dutch fintech platform. “There’s a new generation of shoppers that care a lot about what those terminals offer,” Strazza noted, emphasizing that Gen Z consumers prefer speed and flexibility in payments. Beyond checkout, AI is also expected to refine personalized marketing efforts. Michael Imerman, an assistant professor at UC Irvine’s Paul Merage School of Business, explained that AI-driven insights into consumer spending patterns will make targeted recommendations more precise. “It almost seems like they’re reading your mind,” Imerman said. “But it’s really just taking the digital footprint that you created from your transactions and putting content in front of you that aligns with your preferences and interests.” Additionally, AI can reduce the frequency of unexpected card declines by incorporating alternative data—such as bill payment history—into credit risk assessments, according to Bill Maurer, director of UC Irvine’s Institute for Money, Technology, and Financial Inclusion. For businesses, AI is streamlining payment processes and reducing administrative burdens. Melissa Forman-Barenblit, president of the Dallas-based payments platform TriumphPay, highlighted how AI is being used to standardize invoice processing and automate approvals. “Each of those parties will be able to validate that an invoice is real and then execute a payment,” she said. AI also helps identify missing documentation and resolve payment issues more efficiently. The technology is also automating financial reconciliation, a process that can be time-consuming for businesses handling large volumes of transactions. Rocio Wu, a principal at F-Prime Capital, pointed out that AI is taking over many manual back-office tasks, allowing companies to operate more smoothly. AI’s ability to detect fraudulent transactions has long been one of its most powerful applications in the payments industry. Companies like ACI Worldwide and Fiserv use AI to analyze vast amounts of payment data and spot irregularities in real time. “You can find these patterns much quicker and more effectively using AI,” said Tom Warsop, CEO of ACI Worldwide. However, as financial institutions use AI to fight fraud, criminals are using the same technology to carry out sophisticated scams. Andrew Shikiar, CEO of the FIDO Alliance, warned that generative AI is making phishing attacks more convincing and harder to detect. “With generative AI, fraudsters can very quickly create grammatically perfect native language phishing attacks that bring someone to a pixel-perfect replication of the website,” Shikiar explained. To counteract these threats, financial institutions are using AI to analyze transactional data at scale, flagging suspicious activity faster than traditional methods. Taira Hall, head of enterprise payments strategy at Citizens Bank, emphasized AI’s role in proactively identifying fraud. AI “could create an opportunity to leverage data to better understand customer behavior and recognize patterns, enabling us to identify fraudulent transactions more quickly,” Hall said. While AI-driven payment innovations aren’t entirely new, the growing scale of computing power is pushing them to the forefront of financial technology. As John Wilson, director of the MS Fintech program at the University of Connecticut’s School of Business, put it, “The techniques that many people are calling AI, they’re not innovative, they’re not new, but they’re happening perhaps at a larger scale because of computing power.” As AI continues to evolve, its role in the payments industry will only expand, shaping how consumers and businesses conduct transactions in 2025 and beyond.

How Fintechs Can Drive Inclusivity in Traditional Financial Services

How Fintechs Can Drive Inclusivity in Traditional Financial Services

Fintechs have long been at the forefront of innovation, reshaping banking and payment landscapes, as stated in The Fintech Times. They have also played a crucial role in advancing financial inclusion, developing solutions that support underserved communities. However, as the broader financial ecosystem remains dominated by traditional financial institutions, the question arises: Can fintechs influence these institutions to place a greater emphasis on inclusivity? To explore this, industry experts weigh in on the challenges and opportunities in making financial services more accessible. Monika Liikamaa, co-founder and co-CEO of Enfuce, highlights the hesitance of traditional banks in adopting inclusive and sustainable practices, stating: “A better financial services industry starts with a braver one. Fintechs are defined by our innovation, our ability to move more quickly and take bolder, braver actions in ways that traditional financial institutions can’t.” She criticizes traditional financial institutions for using what she calls the ‘holy trinity of ESG excuses’—compliance, budget, and security—to justify their lack of action: “Each of these excuses sounds different, but they all say the same thing – ‘not us, not yet, not us.’” Liikamaa argues that financial institutions have the capability but lack the courage to tackle pressing issues such as climate change, inclusivity, and sustainable growth. She emphasizes that sustainable banking is not just ethical but also good business. Huw Davies, co-founder and CEO of Ozone API, underscores the importance of collaboration between fintechs and banks: “The fintech industry perhaps started with a vision of David vs. Goliath; with plucky fintechs taking on the big traditional banks. The reality, however, is very different. It’s an industry of collaboration and partnership.” He explains how open banking is enabling fintech innovation to reach underserved communities. For example, open finance solutions help small merchants in Latin America reduce transaction costs and settlement times, allowing them to transition from cash reliance to digital payments. This shift not only increases safety but also establishes a transaction history that can improve access to credit. “In fact, access to credit is arguably the biggest way banks can improve inclusivity.” By leveraging alternative data sources, fintechs enable banks to conduct faster and higher-quality risk assessments, helping individuals without traditional credit histories access financing. Meri Williams, CTO at Pleo, sees AI as a powerful tool for inclusivity if applied responsibly: “Fintechs are known for their role in technological innovation, and as part of this, they’ve highlighted the great potential tech has in improving inclusivity.” She highlights AI’s ability to remove bias from hiring processes and improve access to financial services. However, she cautions that AI should not replace human decision-making entirely: “Technology, AI particularly, can develop biases based on the person or business that created it, so it should only be used alongside a human who can ensure fair decisions are being made.” Philipp Buschmann, co-founder and CEO of AAZZUR, emphasizes the importance of regulatory reform: “Regulation is one of the most powerful tools we have, but it’s a double-edged sword. Regulation can kill innovation.” He argues that blanket regulations often favor large financial institutions while stifling smaller fintechs. Instead, he advocates for a sandbox approach, allowing fintechs to innovate while ensuring compliance. He also encourages collaboration between fintechs and traditional banks to showcase the business advantages of inclusive practices. Catharina Eklof, CEO of IDEX Biometrics, highlights the potential of biometric smart cards to improve accessibility for individuals with visual or cognitive disabilities: “Biometric smart cards can bridge this gap for people with visual or cognitive disabilities worldwide and who deserve to feel secure, included, and independent.” She explains how biometric smart cards, which link identity verification to fingerprints, enhance security while eliminating the challenges associated with PIN-based transactions. This technology also incorporates tactile markers to assist visually impaired users. Chris Chabot, VP Developer Relations at Shardeum, advocates for open-source fintech solutions to ensure inclusivity: “The key solution to ensuring underserved communities are empowered by fintechs is making their technology open-source.” He argues that open-source technology allows entrepreneurs worldwide to contribute and benefit from fintech advancements, creating a more equitable financial ecosystem. “Open-source doesn’t discriminate against marginalized communities, it values the best contributions. It creates a meritocratic ecosystem accessible to everyone, everywhere.” The path to greater inclusivity in financial services requires a multifaceted approach. Fintechs can lead the way by pioneering innovative solutions, collaborating with traditional banks, leveraging AI responsibly, advocating for smarter regulations, and embracing biometric and open-source technologies. As these changes take hold, traditional financial institutions may find that inclusivity is not just a social responsibility but also a significant business opportunity.

The Rise of AI in Auto Lending: Benefits, Trends, and Future Predictions

The Rise of AI in Auto Lending: Benefits, Trends, and Future Predictions

The auto lending industry is undergoing a significant transformation, driven by the integration of artificial intelligence (AI) and machine learning (ML), according to defi Solutions. These technologies are streamlining processes, enhancing customer experiences, and improving risk management. According to a Deloitte survey, 86% of AI adopters in financial services believe AI will be «very or critically important to their business’s success» in the coming years. AI, when paired with ML algorithms, enables lenders to provide loans to more people while increasing transparency and improving regulatory compliance. For instance, AI can automate data collection and analysis, assess creditworthiness using both traditional and alternative data, and identify potential fraud. Additionally, AI-powered chatbots can resolve customer issues without human intervention, enhancing the overall consumer experience. «AI in auto lending, when paired with machine learning (ML) algorithms, enables lenders to provide loans to more people while increasing transparency and improving regulatory compliance.» Several key trends are shaping the future of auto lending: 1. Automated Underwriting AI evaluates loan applications in real time, leading to faster approvals and increased efficiency. 2. AI-Powered Credit Scoring By analyzing alternative data, such as utility payments, AI expands credit access, reduces bias, and improves accuracy. 3. Personalized Loan Offers AI tailors loan terms based on borrower profiles and preferences, enhancing customer satisfaction and increasing conversion rates. 4. Chatbots & Virtual Assistants AI-driven bots improve customer support by handling queries and providing assistance, boosting the customer experience and reducing support costs. 5. Predictive Analytics AI predicts loan repayment risks and borrower behaviors, helping lenders optimize their strategies to minimize defaults and improve return on investment. 6. Loan Servicing Automation AI simplifies post-loan tasks like payment reminders and collections, streamlining operations and improving borrower retention. 7. Vehicle Valuation AI provides dynamic insights into vehicle values, leading to more accurate loan-to-value ratios. 8. Compliance Monitoring AI ensures adherence to lending regulatory requirements, reducing regulatory risk and improving customer trust. «Using AI with auto lending analytics applications allows lenders to evaluate a wide array of data to provide valuable insights.» Integrating AI into auto lending can be achieved through in-house development or by partnering with third-party providers. While in-house solutions offer customization, they require significant resources to maintain. Third-party providers offer scalability and flexibility, making them an optimal choice for many lenders. For example, defi SOLUTIONS collaborates with partners like Point Predictive to provide AI-driven tools that enhance lending operations. The adoption of AI in auto lending is revolutionizing the industry by making operations more efficient, improving customer experiences, and enhancing risk management. As AI technology continues to evolve, its role in auto lending is expected to expand, offering even more innovative solutions for lenders and borrowers alike.

AI to Unlock Financial Services’ True Potential in 2025, Experts Predict

AI to Unlock Financial Services’ True Potential in 2025, Experts Predict

The latest 11:FS Pulse Report—the fourth annual edition from the industry-leading benchmarking platform—highlights last year’s best user journeys in financial services and presents expert predictions for 2025, according to FF News. According to experts at 11:FS, artificial intelligence (AI) is set to revolutionize financial services in multiple ways. The report forecasts: Hyper-Personalized Banking: AI-driven advancements will enhance customer support, refine product discovery, and create tailored user interfaces for a more individualized experience. Crypto’s Big Leap Forward: With pro-crypto regulations expected after Donald Trump’s re-election, traditional financial institutions may face fewer hurdles, leading to increased investments and strategic partnerships. Rising Threats from AI-Powered Scams: As AI and Generative AI (GenAI) continue to mature, financial fraud and scams will become more sophisticated. Banks must innovate rapidly, while fintechs—operating with tighter profit margins—will likely rely on partnerships for survival. Automation and Fraud Prevention: AI’s biggest impact will be beyond chatbots, streamlining compliance processes, automating workflows, and strengthening fraud detection mechanisms. The report also celebrates ‘Pulse Stars’, companies that delivered outstanding user experiences across different financial services sectors. The winners include: Up (Australia): Making complex banking tasks enjoyable. Monzo (UK): Addressing fraud concerns. Niyo (India): Simplifying international travel. Thndr (Egypt): Easing onboarding for first-time investors. Public (US): Empowering investors with AI. Lunar (Denmark): Redefining AI’s role in banking. Lloyds Banking Group (UK): Leading in accessible design. Revolut Business (UK): Simplifying multi-account management. Exodus (US): Transforming crypto portfolio management. Apple (US): Elevating peer-to-peer (P2P) payments. Nubank (Brazil): Enabling cheaper payments via Pix integration. The report introduces a new benchmarking tool analyzing the feature sets of top financial institutions, with five major takeaways: Monzo and Revolut lead UK challengers by seamlessly blending functionality and intuitive design. RBS and NatWest score well on features but lag in usability and visual appeal. A rise in ‘dark UX’ tactics—design strategies that discourage users from seeking customer support. Chase UK’s rapid ascent is due to a strong foundation in digital banking essentials, supported by a select few standout features. Hero features from Monzo and Revolut push the boundaries of what modern banking apps can deliver. Reflecting on the state of fintech, Joe Colchester, Head of Product at 11:FS Pulse, stated: “2024 was a transformative year for financial services. Many fintechs saw profitability become a reality, signaling a much-anticipated shift from growth to sustainable value creation. This evolution marks a maturing industry, with more fintechs going toe-to-toe with traditional banks. As we step into 2025, we do so with cautious optimism—aware of the bold advancements on the horizon, but equally mindful of the risks that accompany rapid transformation.” With AI at the forefront of change, 2025 is set to be a pivotal year for financial services, where innovation, collaboration, and security challenges will shape the industry’s trajectory.

Will Trump 2.0 Improve Fintech and Insurtech?

Will Trump 2.0 Improve Fintech and Insurtech?

The return of Donald Trump to the presidency is expected to bring significant changes to the financial technology (fintech) and insurance technology (insurtech) sectors, shaping market confidence and regulatory frameworks, as highlighted in FinTech Magazine. His second term signals a potentially transformative period for these industries, as evidenced by the presence of top tech leaders—Elon Musk, Mark Zuckerberg, and Jeff Bezos—at his inauguration. Rory Yates, Global Strategic Lead at EIS, highlights the significance of Trump’s second term, referring to it as «Trump 2.0» due to the anticipated regulatory shifts favoring fintech growth. «They are calling this Trump 2.0, and for good reason. Getting Elon, Mark, and Jeff to sit together at the inauguration alone seems to signal that tech will be a strong feature in Trump’s second presidency,» Yates explains. Yates points to a surge in optimism within the fintech industry, particularly in sectors like cryptocurrency, where investors foresee tax policies and administrative changes fostering expansion. The relationship between traditional finance and tech is evolving, with Silicon Valley gaining greater influence over the financial ecosystem. This shift has been observed across various platforms, including insights from Leo Schwartz in Fortune. «In the case of fintech, you could argue this 50:50. However, I am inclined to believe the focus will be more in favor of the tech companies, as opposed to those using technology to disrupt other markets,» says Yates. A notable example of this shift is Aspen Insurance Group’s decision to launch its initial public offering (IPO) in New York rather than London, illustrating the growing appeal of the U.S. market for financial and insurance innovations. Despite these positive trends, the evolving economic and regulatory landscape presents challenges. Increased market volatility, changing interest rates, and inflation remain key concerns for financial and insurance institutions. Yates elaborates: «All in all, we will see a degree of volatility which isn’t straightforward for any financial services or insurance business, and we will see the global economic and competitive landscape continuing to change, impacting inflation and interest rates.» However, Yates remains optimistic about the future, emphasizing the need for adaptability among fintech and insurtech firms: «Predictions aside, it’s evidence yet again that tech-led start-ups need to be highly adaptive, and able to adjust to geo-politics, economics, and societal changes like never before. So focusing on value creation will be key, as will selective growth and a keen eye on profitability, or the quickest path to it.» The fusion of streamlined regulation and increased technological integration presents opportunities for innovation within the insurance sector. Companies that can effectively balance traditional risk management with cutting-edge tech advancements will likely emerge as leaders in the evolving landscape. As market dynamics shift, fintech and insurtech firms must navigate political policies, economic trends, and technological progress with agility. The success of these industries in the Trump 2.0 era will depend on their ability to innovate, adapt, and capitalize on emerging opportunities in an increasingly tech-centric financial world.