• Laurent Descout, co-founder and CEO at Neo


• 24.01.2025 04:30 pm
#FintechTrends2025 #FutureOfFinance

As the new year kicks off, Laurent Descout, co-founder and CEO of Neo, analyses the fintech trends that dominated 202 and looks at how they will play out in 2025.

Throughout 2024, fintechs continued to disrupt traditional financial services, with new technologies continuing to advance analytic capabilities, manage risk and change viewpoints within the financial industry.  

With a new year comes a fresh opportunity for the fintech industry to continue to flex its muscles and outgrow traditional banking services and it seems likely that many of the trends that dominated 2024 - from the growth of stablecoin to the importance of FX hedging for financial resilience – will continue to play a pivotal role this year.  

PSPs will continue to move away from banks

Historically, Payment Service Providers (PSPs) have relied on traditional banking partners to operate their businesses and to deliver their core services. However, these relationships have been fraught with challenges, hindering their ability to operate efficiently and meet market demands. 

At a time when digital payments are accelerating, PSPs can no longer afford to accept the outdated and slow processes which traditional banks continue to provide. 

More concerningly, they also can’t accept the uncertainty of potential account closures or restrictions which new research has found that 95% of PSPs have already faced, often without clear communication. 

The good news is that PSPs now have alternative options with fintechs reshaping the market, driving competition and setting new benchmarks for efficiency and service.

In 2025, we should expect more PSPs to shift towards fintech partners, with 75% of PSPs actively exploring fintech solutions last year.

Growth of stablecoins

Many financial institutions and industry stakeholders now see the huge potential of stablecoins and the benefits they could bring from bypassing the inefficient and slow processes of traditional payments to increased security, recordkeeping and transparency.

As a result, legislation is coming down the tracks fast. The UK has stepped up its efforts to redefine the rules around staking and there’s hope that the US Congress could advance stablecoin laws before the end of the year. 

While it’s too early to say if stablecoins will eventually replace traditional forms of payments, treasurers must be prepared for their increased adoption this year. They should read up and stay abreast of the latest developments and start having conversations about their viability and digital wallets which allow them to hold and utilise them. Those who don’t, risk being left behind.

Adoption of AI in finance  

AI is improving the analytic capabilities of payment firms, meaning thousands of transactions can be checked in a couple of seconds.

The technology now extends beyond chatbots and digital assistants, encompassing areas such as fraud detection and prevention, as well as investment management. However, achieving the right balance between human interaction and maturing technologies requires careful thought. 

We should also look to 2010 when banks spent huge amounts to cope with the first wave of fintech innovation, which didn't exactly work out for them. 

Given banks are risk-averse institutions, there are also plenty of challenges around AI that need to be thoroughly examined first, such as data protection, before banks commit to further AI adoption this year.

FX hedging remains essential 

Last year, currency volatility remained a top concern for businesses as geopolitical tensions, monetary policy shifts and economic uncertainty shaped the global landscape.

From the pound’s challenges post-U.S. election to rising hedging costs, FX risks are pressing—and treasurers must shift from reactive to proactive FX risk management strategies.

Traditional reliance on banks often results in poor pricing, slow execution, and outdated tools, leaving SMEs particularly exposed to currency fluctuations. Thankfully, fintech solutions offer a smarter alternative, providing real-time insights, better pricing models, and seamless integration with financial systems. 

These innovations empower treasurers to lock in exchange rates, hedge effectively, and align risk management with cash flow forecasting.

In today’s volatile markets, robust FX hedging is essential for financial resilience and sustainable growth. This year, we will continue to see the adoption of modern tools so businesses can protect profitability, navigate uncertainty, and seize opportunities. The stakes are high—those who fail to adapt risk falling behind.

What’s on the cards for the year ahead?

2024 was a transformative year for fintech, marked by major shifts like the adoption of stablecoins, PSPs moving away from banks, AI's impact on financial operations, and an emphasis on robust FX hedging.

This year, these trends will continue to redefine the financial landscape, offering new opportunities while presenting challenges around adoption, regulation, and integration. 

Fintech’s innovation will remain a key driver of efficiency and resilience, empowering businesses to adapt, grow and thrive in the evolving global economy.