The fintech sector, in particular, has fierce competition, as the number of startups launched globally keeps growing year over year. In 2024, the figure stood at approximately 30,000, and as we step into 2025, it is likely it will only continue to climb.

Fintech today is no longer just about transforming finances services – its influence is seeping into many other industries, broadening opportunities for consumers and reshaping how businesses interact with their clients.

Let’s take a closer look at the main trends that I believe will shape the startup ecosystem in 2025.

Financial services embedded in everyday apps

The days when financial services were restricted to traditional banks are well beyond us. Today, even everyday platforms are seeing integration of payment-related functions, offering a new level of convenience to users.

Take, for example, apps like Freely or Sygic that offer travel insurance in their suites directly through apps. Or the Singaporean Ryde platform that straight up offers built-in crypto wallets as a way to pay for hailing a ride. More and more, startups are making an effort to go to their users, embedding financial tools in platforms and apps where people spend a lot of their time.

This shift has many layers to it. On the one hand, making payments effortless like this means enhancing the day-to-day experiences of regular consumers, driving customer satisfaction, and long-term loyalty. At the same time, it is also a way for startups to open up new revenue streams by partnering with various platforms.

The rise of digital wallets and alternative currencies

Let’s face it: digital wallets and alternative currencies like crypto aren’t just buzzwords anymore. They’ve become popular tools for startups that are looking to attract new customers and expand into underserved markets that traditional banking often overlooks. Cryptocurrencies are rapidly developing into the foundation of a borderless financial ecosystem where people can send money anywhere in the world without breaking a sweat.

Startups leveraging these instruments often offer consumers greater flexibility and control over their money than a typical bank ever could. Once again, it’s a win-win situation: customers feel comfortable, and businesses get to benefit from building a loyal following.

Real-world asset tokenisation

Tokenisation is picking up the pace, as startups turn big, expensive real-world assets like real estate and art into digital tokens, enabling their fractional ownership. By breaking down high-value assets in such a manner, they’re democratising investment opportunities. You can now own a part of a luxury apartment or a piece of a famous painting without having to be a millionaire.

This trend is opening up investment opportunities for everyday people while also solving the problem of liquidity in traditionally illiquid markets. Smaller, tradable tokens are easier to buy and sell, which makes the m a good way to lower entry barriers to investing activities.

Plus, there are also platforms like Securitize out there, working to simplify the tokenisation process and ensure that everything stays above board and compliant with the right regulations, further legitimising this field.

AI-powered financial decision-making

Artificial intelligence is certainly one of those terms that pretty much everyone has heard of, whether or not they have any deep involvement with the fintech sector. From smarter budgeting tools to advanced credit scoring algorithms, AI is revolutionising how individuals and businesses alike make financial decisions, offering a new level of personalisation and efficiency.

Among other things, AI-driven apps can analyse spending habits and guide consumers toward services and products better suited to their needs. In a similar fashion, startups can use AI models to better evaluate the creditworthiness of clients, considering factors beyond traditional credit scores and making loans accessible to more people.

On the business side of things, AI can actually helping startups innovate faster. Machine learning models can be leveraged to process vast amounts of market data to identify relevant trends, potential risks and opportunities, and optimise growth strategies. Startups can use this kind of insight to level the playing field and keep up with bigger players that have better budgets.

Financial inclusion through microservices

Financial inclusion is a priority trend in fintech and will remain so for a long time. And microservices are one of the ways for startups to make strides in this direction. For those who might be unfamiliar with the term, microservices are small, affordable financial solutions designed for underserved populations, particularly in developing countries.

It might not sound impressive, but platforms that allow users to save, borrow, or invest tiny amounts really can drive positive change for many people. Take, for instance, a farmer in a remote village that needs a loan to buy better seeds. Even getting to a typical bank may prove problematic for someone like that, let alone proving their creditworthiness to receive a loan.

A microservice, on the other hand, would be unlikely to pose such a problem. Smartphone penetration is on the rise even in the developing regions, so it wouldn’t be too hard for a person to take a loan via an app on flexible conditions.

This isn’t just about business opportunities – it’s about creating a positive social impact, filling in the gaps left by traditional financial institutions and making access to financial tools possible for people who were previously excluded.

Final thoughts

Startups are going to have many opportunities waiting for them in 2025, many of which will be driven by fintech’s cross-industry influence. These trends are all pointing towards a future where the accessibility and effectiveness of financial services will reach a new level on the global scale. For startup-launching entrepreneurs, understanding these trends and adapting to them will be the key part to fining success.

For more startup news, check out the other articles on the website, and subscribe to the magazine for free. Listen to The Cereal Entrepreneur podcast for more interviews with entrepreneurs and big-hitters in the startup ecosystem.