For Fintech, 2024 Was A Year of Hype, Hustle and Hard Truths. What’s Next In 2025?

By Katherine Maslova

This has been a year of rapid progress and high expectations for the fintech sector. There’s also been lots of buzz — and hard, painful truths learned. As it turns out, certain trends are more aspirational than practical. Here’s what I mean.

AI implementation: More buzz than reality

As you may have noticed, AI dominates the headlines. Many companies claim they boast deeply transformative tools — but what are they really accomplishing?

In many cases, AI applications are confined to chatbots and call centers. True AI-powered innovation — such as adaptive financial modeling or real-time fraud prevention — remains limited.

The cost of developing and maintaining robust AI models is prohibitive for many smaller firms. Additionally, there are ethical concerns regarding biases and privacy preventing widespread deployment in areas like credit scoring or underwriting. For instance, Revolut has introduced AI-enabled budgeting tools, but these mostly categorize expenses instead of adapting dynamically to complex spending behaviors.

So, despite being a sector with a strong concentration of AI leaders, fintech — like 74% of companies across industries — struggles to scale value.

Greenwashing is equally loud

There’s a push for sustainability in fintech — yet, many firms promote green products without any genuine impact fundamentals. Many hyped-up initiatives — such as carbon-neutral cards — fail to live up to their claims and rely on vague metrics. No wonder consumers are skeptical.

And while greenwashing, overall, is decreasing, new RepRisk data reveals that 36% of companies in the financial sector were still linked to greenwashing in 2024.

Balancing expectations and reality

While some platforms effectively integrate payment and lending services, more complex offerings like wealth management remain fragmented. Users often encounter clunky interfaces and misaligned expectations, particularly when trying to switch between services. Addressing these challenges requires a commitment to refining user experiences through iterative design and feedback loops. For us at BoBo, it took many months to adapt the interface and customer journeys to meet our clients’ needs, drawing on extensive user feedback from the initial restricted go-live.

Do regulations stifle growth?

Given the sensitivity of the industry, regulators worldwide have intensified fintech scrutiny.

While this oversight aims to protect consumers in regions like the European Union and the U.S., complex compliance requirements such as the AI Act and crypto taxation policies are demanding startups’ resources. This hinders time and money that could be allocated to growth.

Looking ahead: What’s in store for 2025?

As we enter the new year, I expect that fintech platforms will leverage tools like gamification and content to empower the younger generations. They have a strong emphasis on attaining financial education and autonomy.

Blockchain and crypto are back in focus, promising faster, more affordable transactions. While adoption is still in its early stages, mainly due to regulatory uncertainties, 90% of Europe’s financial leaders remain optimistic, expecting broader adoption ahead.

Beyond hype, the integration of AI will grow in importance, as firms learn more about its capabilities. Furthermore, embedded finance will grow as financial services integrate even more heavily into nonfinancial platforms, letting consumers access banking, lending or insurance directly within daily-use apps. For this matter, cybersecurity will remain a top priority.Investments driven by sustainability will become paramount. Millennials and Gen Z can see beyond greenwashing, and this will force fintechs to integrate ESG ratings and impact investing options. In summary, in 2025, fintech platforms that successfully leverage technology while maintaining a sustainable focus and offering a seamless, personalized experience will be the ones that thrive.

Katherine Maslova, chief business development officer and founding member of Bourgeois Bohème (BoBo), has more than 15 years of experience in traditional banking and fintech. She has held senior roles, including deputy CEO of a corporate fintech startup and SVP at top 10 market banks. Now at BoBo, she is bridging the tech gap between private banks, advisers and the digital-first generation of ultra-high-net-worth individuals.

Illustration: Dom Guzman