Fintech investments in 2025: a risky game or a golden ticket?

The fintech industry has long been a real battleground for the future of financial services. Payment services, digital banks, and blockchain solutions – all of these are game changers. Investors know this, but the latest figures make them more cautious.

• In 2024, total fintech investment fell to $95.6 billion, the lowest level in seven years. 

Why is this so? Is it a temporary decline, or is fintech's ‘golden age’ over? We analyse the current market and try to predict the future! ⬇️

According to a report by KPMG, despite the overall downturn, the Americas remain the epicentre of fintech investment, with $63.8 billion in 2024, of which $50.7 billion came from the US. Europe, the Middle East, and Africa (EMEA) together attracted $20.3 billion, and Asia Pacific (ASPAC) attracted $11.4 billion. 

And now the most interesting thing: where is the money?

✅ Payments are number one 

Investors are not afraid to take risks here. In 2024, this sector attracted $31 billion, which confirms the stable interest in B2B solutions and digital wallets (Fintech Insider).

✅ Insurtech and ESG/greentech 

Investors have started to invest more in insurance technology and fintech that takes into account environmental and social factors.

✅ Cryptocurrencies? Still a game of roulette. 

After a wave of regulatory restrictions and bankruptcies of major players, investors became more cautious in 2024. However, stablecoins and DeFi tools are still afloat.

Financial technology is constantly changing, and it is already clear which trends will shape the market in 2025. If you are thinking of investing in fintech, here is what you should consider:

Artificial intelligence (AI) in finance

AI is changing everything from banking to trading. Personalised banking solutions based on machine learning can offer customers tailored products, predict their financial needs, and even prevent fraud.

What is happening now?

• AI-based anti-fraud systems analyse transactions in real time and can block suspicious transactions in milliseconds.
• AI-driven wealth management helps to automate investment management based on complex analytical models.
• Intelligent chatbots and voice assistants are increasingly replacing human support operators, which reduces banks' costs and improves customer experience.

‘Generative AI - hype or reality’ - Margarita Ochigawa, CEO of Tranzzo, took part in the panel discussion at CloudTech Wise IT Ukraine

Blockchain and digital currencies

Despite speculations and volatility of the crypto market, blockchain remains one of the most promising technologies for the financial industry.

What is in focus now?

• CBDCs (central bank digital currencies). China is already introducing a digital yuan, the EU is testing a digital euro, and the US is considering its own CBDC.
• Decentralised finance (DeFi) is an alternative to traditional banks that allows loans, deposits, and exchanges without intermediaries.
• Smart contracts significantly reduce transaction costs and the time to complete financial transactions.

Big Data in finance

The more data a financial company has, the more accurately it can predict customer behaviour, detect fraud, and offer personalised services.

The main areas of Big Data use:

• Credit analytics: banks no longer rely on credit history alone - they analyse behavioural patterns, social connections and transactional data.
• Risk management: Big data helps banks and investors anticipate market fluctuations.
• Hyper-personalisation: With the help of AI and Big Data, financial services can offer customers exactly the products they need before they even realise it.

ESG finance – when fintech goes green

Global giants have long been focused on environmentally and socially responsible investments. And fintech is no exception.

Here is what is included in the concept of ESG finance:

• ‘Green payments – fintech companies launch services that help users offset the carbon footprint of their purchases.
• Environmentally friendly lending - banks are increasingly analysing the environmental impact of businesses before issuing loans.
• Financial solutions for social impact - micro-lending services that support entrepreneurs in developing countries.

Learn more about fintech trends ➡️ at the link

As we have already mentioned, payment infrastructure is one of the most promising niches when it comes to specific opportunities for investing in fintech. Businesses want to quickly launch their own payment solutions without any hassle, and investors want to gain a share of this market.

Tranzzo's White Label PSP is a ready-made payment solution that allows companies to launch their own payment service under their own brand.

Why is it profitable?

• Why White Label PSP is the key to business success

🚀 Quick start

No need to build a payment system from scratch - everything is already ready.

🚀 Flexibility 

The ability to adapt the solution to any business, e-commerce, financial services, or marketplaces.

🚀 Security and regulatory compliance 

All the necessary integrations and security are already provided.

🚀 Reduced costs 

Investors do not need to invest in the development of their own infrastructure.

Investing in a White Label PSP from Tranzzo is a strategic solution that allows you to enter the fintech industry without excessive risks.

Fintech is a battlefield for innovation. And those who bet on the right solutions will win in 2025. 🚀