From sustainability to super apps: top trends shaping fintech’s future
Over the last decade, fintech has transformed financial services, reshaping the future of how businesses and consumers interact with the financial world. These innovations have led to greater inclusivity, providing access to financial tools that were once out of reach for many, while also driving competition by challenging traditional banking models.
Fintech’s focus on continuous innovation has helped create faster, more personalised services that push financial institutions to evolve – or risk being left behind. Traditional banks and financial institutions have responded by adapting and competing with fintech’s agile, customer-centric model, leading to a more robust and innovative financial services industry overall.
In 2025, fintech will build on these foundations – transitioning from individual innovations to broader integration with established industries, offering financial services that are more interconnected, secure and sustainable.
While there are many emerging trends in fintech, I’ve focused on five key areas that are going to be particularly impactful in 2025. These include global expansion and mergers and acquisitions (M&A), the rise of smart data, the increasing use of artificial intelligence (AI), sustainability in finance and the growth of super apps.
By Tom Moore, head of Moore Kingston Smith’s financial services and fintech sector groups.
Global expansion and M&A
M&A is enabling fintech firms to enter new markets, particularly in emerging regions, while boosting their technological capabilities. By acquiring local start-ups, fintech companies are better equipped to tackle regional regulatory challenges and cultural nuances.
After a challenging 2023, the fintech sector has shown resilience in 2024, with funding for fintech start-ups growing by 45% by Q3 to reach $1.6 billion, according to Dealroom, which provides data on start-ups and tech ecosystems across Europe. This resurgence reflects renewed investor confidence, especially in areas like AI and embedded finance.
M&A remains a key strategy for fintech companies looking to expand their reach and strengthen their tech infrastructure. With more capital available, fintech companies are now in a stronger position to pursue acquisitions, allowing them to expand geographically and strengthen their technological infrastructure.
For instance, UK fintech firms are looking to growth markets in Asia, Africa and Latin America, where digital financial services are even more in demand. By acquiring or partnering with local start-ups, they are entering these markets faster, adapting their products to fit local needs and tackling complex regulatory requirements.
Beyond geographic expansion, the drive to adopt new technologies is fuelling M&A activity. AI and climate technology are particularly attractive to fintech firms looking to enhance their services. Solutions like automation tools, fraud detection systems and personalised customer support, powered by AI, are helping fintech companies provide more efficient and responsive offerings. Acquiring start-ups that specialise in these areas allows fintech firms to integrate innovative technology into their operations, improving both customer experience and internal efficiency.
Sustainability is also becoming a focus for fintech companies. M&A deals are helping them expand their sustainable finance options, such as green bonds and carbon-tracking tools. These products enable consumers and businesses to make more environmentally responsible financial choices, meeting the rising demand for ethical finance solutions.
In 2024, UK fintech companies raised $2.9 billion in the third quarter alone, the highest amount of funding in Europe, according to Dealroom. While this reflects growth, total funding was still down by 9% compared to 2023, indicating that the sector is not without its challenges.
Looking ahead to 2025, M&A will continue to be a crucial strategy for fintech firms seeking to break into new markets, acquire innovative technologies and diversify their product offerings.
Smart data
Smart data is becoming central to innovation in fintech, offering new ways to personalise services and improve decision-making. In 2025, fintech companies are expected to fully leverage the potential of data-sharing frameworks that enable smarter and more secure data usage, building on the UK’s Digital Information and Smart Data (DISD) Bill, introduced by the Labour government in 2024.
This bill replaces the previously stalled Data Protection and Digital Information (DPDI) Bill, marking a shift in the UK’s approach to data use and protection. While the legislation sets the foundation for more secure and regulated data sharing, its real impact on fintech lies in the opportunities it unlocks for innovation.
Smart data schemes, introduced under the DISD Bill, are enabling consumers and businesses to share their financial data with authorised third-party providers (ATPs) securely, offering fintech firms more in-depth insight to tailor financial products.
For fintech companies, this translates into a deeper ability to personalise services – whether through tailored lending, insurance or investment options. By combining consumer data with business insights, fintech firms can refine their offerings, helping consumers make better financial decisions based on real-time, personalised recommendations.
The rise of smart data also creates opportunities in areas like open finance, where the secure flow of data between institutions enables the development of more sophisticated financial ecosystems. Fintech companies can now deliver a broader range of services by linking financial data with other sectors such as healthcare or energy, leading to cross-sector innovation and more holistic solutions for customers.
In addition, the introduction of Digital Verification Services under the DISD Bill is streamlining identity verification processes. For fintechs, this means simplified onboarding, reduced fraud risk and faster, more secure customer experiences. This is particularly relevant for fintech firms focused on improving trust and efficiency in such areas as digital lending or insurance.
Another development in late 2024 has been the £22 million investment by Smart Data Research UK (SDR UK), aimed at creating new data services that support both research and business innovation. These new services are expected to provide fintech firms with even richer datasets, allowing them to stay ahead of trends, anticipate market shifts and deliver products that better align with customer needs.
However, with these advancements come challenges, especially regarding privacy and compliance. The DISD Bill addresses these concerns by introducing stronger data protection measures and empowering the Information Commissioner’s Office (ICO) to ensure businesses remain compliant. For fintech companies, balancing innovation with these new compliance requirements will be critical but those that manage it will be well-positioned to lead the market.
In the end, smart data is about more than just technological advancement; it’s about creating more secure, personalised and efficient financial experiences for consumers while maintaining trust and ethical data use. Fintech firms that can tackle this balance will have the opportunity to drive the future of financial services.
AI
AI is a buzzword globally, not just in fintech. It’s changing industries across the board and, in 2025, AI will play an even more prominent role in areas like fraud detection, customer service and financial planning. However, as AI’s capabilities expand, so do concerns around its risks and ethical use.
Fraud detection remains one of the most powerful uses of AI in fintech. These tools can process vast amounts of data in real time, identifying suspicious patterns that might signal fraud. This proactive approach helps prevent losses while also building trust in digital platforms.
However, the increased deployment of AI comes with a set of challenges. Concerns around deepfakes, misinformation and unexpected system failures are no longer hypothetical. Recognising these risks, the UK government launched a series of initiatives in 2024 to address systemic AI safety. One such effort includes a grants programme, providing funding to researchers investigating the potential dangers of AI in critical sectors like finance. The aim is to develop long-term solutions to mitigate these risks, ensuring AI’s responsible use.
Public confidence in AI is crucial, not just in fintech, but across industries. The government’s efforts are geared towards building trust in AI technologies by ensuring they are safe and reliable at the point of delivery. This is especially relevant as fintech firms increasingly rely on AI to automate processes and deliver personalised financial services. For companies that manage to balance innovation with responsibility, the rewards are significant.
Generative AI, capable of creating new content from existing data, is gaining traction in fintech as well. It’s being used to develop personalised financial advice, generate client reports and automate content creation. But this brings concerns around transparency and bias. The UK’s systemic AI safety initiative is also addressing these concerns, emphasising that, as AI becomes more integrated, businesses must show a commitment to ethics, privacy and accountability.
AI’s impact on financial planning and wealth management is also significant. Robo-advisers, powered by AI, are now providing personalised investment strategies based on real-time data and market trends. These advancements are making wealth management more accessible and affordable, allowing a broader audience to access high-quality financial advice without the hefty price tag. As AI continues to develop, fintech companies will likely develop even more advanced tools to help individuals meet their unique financial goals.
Sustainability
As environmental, social and governance (ESG) factors become increasingly important in financial decision-making, fintech companies are at the forefront of developing solutions that promote sustainability. In 2025, green finance will be a major driver of innovation in the fintech sector, as companies respond to growing demand from consumers and investors for environmentally responsible financial products.
In addition to growing consumer demand, fintech companies should also prepare for new sustainability reporting standards. The International Sustainability Standards Board (ISSB) announced at COP26 the introduction of global benchmarks for sustainability disclosures, including IFRS S1 and IFRS S2, which the UK government is set to endorse in 2025.
These standards will form part of the UK’s Sustainability Disclosure Reporting (SDR) framework, making it essential for fintechs to incorporate robust ESG tracking and reporting tools into their offerings. Being ahead of these regulations will not only meet compliance needs but also provide a competitive edge in the increasingly green finance market.
A key trend in green fintech is the rise of platforms that let consumers track their carbon footprints and invest in sustainable projects. These platforms are empowering individuals to align their financial decisions with their environmental values, providing greater transparency around the impact of their spending and investment choices.
For example, a fintech app might show users how their purchases contribute to carbon emissions and offer suggestions for reducing their environmental impact, such as switching to renewable energy providers or investing in sustainable funds.
Fintech firms are also developing new tools that help businesses track their ESG performance. These tools provide insight into how companies are performing on key sustainability metrics, such as carbon emissions, waste reduction and water usage. By providing real-time data on ESG performance, fintech companies are helping businesses make more informed decisions about their sustainability strategies and report on their progress to investors and stakeholders.
Blockchain technology is playing a role in verifying and tracking sustainable practices across supply chains. Blockchain’s ability to provide a transparent and immutable record of transactions makes it an ideal solution for verifying the authenticity of green investments.
For example, blockchain can be used to track the production and distribution of renewable energy credits, ensuring that they are not double-counted or fraudulently claimed. This level of transparency is critical for building trust in green finance and ensuring that ESG claims are credible.
From my experience, the companies that manage to integrate sustainability into their financial offerings while maintaining compliance are going to be the ones leading this space. It’s about more than just keeping up with trends – it’s about building trust and, in this climate, trust is everything.
Super apps
Super apps are changing how consumers interact with financial services by consolidating multiple services into a single platform. In 2025, we expect more UK fintech firms to develop their own versions of super apps, which are set to become central to how people manage their personal and financial lives.
These apps offer users access to a wide range of services, from banking and payments to investments, insurance, shopping and entertainment, all in one place. This level of convenience is particularly attractive to younger consumers, who value both efficiency and personalisation in managing their finances. The ability to handle everything from one platform is driving the popularity of super apps.
For fintech firms, the super app model presents an opportunity to expand their offerings and build stronger relationships with customers. By integrating multiple services, companies can gather rich data about user behaviour, which in turn enables them to provide more tailored products.
For example, a super app might recommend investment options based on a user’s spending patterns or offer personalised insurance products that align with their lifestyle. This data-driven personalisation helps companies deepen engagement with users while enhancing customer satisfaction.
However, creating a successful super app requires significant investment in technology and infrastructure, as well as a focus on data security. Super apps handle sensitive financial information, making them prime targets for cyber attacks. Fintech firms must prioritise security measures like encryption, multi-factor authentication and real-time fraud monitoring. Compliance with regulatory requirements is also crucial to maintaining trust and protecting user data.
The competition in the super app space will be fierce, with fintech firms racing to offer the most useful and secure platforms. From a legal perspective, I see companies that manage to balance innovation with strong data protection measures as the ones best positioned for success. It’s not just about offering more services – it’s about doing it in a way that meets consumer needs while safeguarding their data. For firms that get this balance right, the future of super apps holds immense potential.
Fintech's impact on the future of finance
The influence of fintech is no longer about disruption alone – it’s about becoming a vital part of the financial world. Fintech firms are thriving because they’re constantly evolving to meet new challenges and consumer expectations. In 2025, this means focusing on innovation, collaboration and sustainability.
Whether it’s expanding into new markets, using data in smarter, more impactful ways or offering environmentally conscious financial products, fintech is shaking up how financial services are delivered.
What’s clear is that the companies leading this charge aren’t just adapting to change – they’re defining it. By integrating these trends, fintech firms are becoming foundational to the way we experience finance, and that’s where the real shift is happening.
