Unpacking 2025 Fintech Trends: From Regulatory Tech to Embedded Payments

At a glance

• The main takeaway: Despite economic challenges and a Fintech winter, opportunities abound for tech businesses agile enough to adapt and seize them.
• Impact on your business: The current market is characterized by geopolitical uncertainties and economic slowdowns, prompting tech companies and investors alike to adopt a more cautious approach.
• Next steps: Partnering with a trusted advisor can give you a competitive edge, providing industry insights and access to a wide range of resources tailored to your business needs. Aprio’s Technology team empowers businesses and helps them seize growth opportunities. Contact our team today.

Have any questions? Schedule a consultation with our team today.

The full story:

Sandwiched by recessionary trends in the market, venture capitalists are more cautious, exercising restraint when releasing capital. For many investors, easy capital is no longer a given, with firms trying to conserve cash, making themselves more profitable by cutting costs in hopes that valuation multiples will expand in the future. It’s a “hunker down and wait for spring mindset” across the space.

Amidst a Fintech winter, regulatory technology, real-time payments, and embedded payments are outliers in the tech space. A long-term positive outcome remains, even as layoffs continue across the space.

The state of digital assets

While investors aren’t pouring money into digital assets as much as they used to, its decline is in part tied to its mainstream appeal. The flow of capital in the space is now moving towards the big players who can meet compliance standards.

AI grows more power hungry

AI companies are creating a strain on the U.S. electrical grid. As more AI data centers prepare to go online, it could drive electrical rates to astronomical proportions, making utility stocks particularly attractive.

Bright spots shine

• Regulatory technology: Regtech is reshaping compliance processes by streamlining monitoring, reporting, and more. Heightened regulatory scrutiny in multiple sectors is pushing many financial institutions to adopt Regtech solutions. As global regulatory frameworks expand and with governments imposing stricter Anti-Money Laundering (AML) regulations, the demand for automated compliance tools is skyrocketing.
• Real-time payments: Real-time payments are rippling through B2B and B2C transactions, upgrading security and cross-border payments. Driven by consumer demand for instant transactions and aided by the amassing of mobile wallets and digital payment apps, this shift is primed to improve the capacity of global payments, with the G20 aiming for 75% of cross-border payments to be settled within an hour by 2027.
• Embedded payments: Embedded payments are a hot trend in Fintech, attracting capital, with SMBs driving significant demand. These software companies are getting a chunk of money from payments chains, cutting down the margins of third-party payment processors and taking revenue from the big banks. This trend will eventually impact the performance of third-party processors and big banks, though it will take time, and they will need to create other sources of revenue.

The bottom line

Businesses must recognize the potential in emerging trends, such as regulatory technology and real-time payments, to offer new avenues for growth and innovation. By focusing on these bright spots, tech companies can position themselves to weather economic challenges and capitalize on the next phase of digital evolution.

It’s a pivotal moment for tech companies to adapt and thrive in a dynamic environment. Our new report sheds light on the evolving tech landscape and the opportunities it presents. The report, featuring insights from Aprio’s Technology leaders, highlights the trends that are rapidly transforming industries and setting the stage for the future of finance and technology. Aprio’s “Technology Outlook 2025: Pioneering the Next Wave of Digital Transformation” report is out now. Download the full report here.

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