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As we pass the halfway point of 2025, the global banking and fintech sectors (as ever) find themselves in a state of transformation.
The first two quarters have been punctuated by regulatory upheaval, technological acceleration, and significant advances in digital payments infrastructure.
From Washington to Brussels to Singapore, institutions are grappling with both emerging risks and unprecedented opportunities.
With that backdrop, five key trends are set to define the landscape in the second half of the year.
Open Banking’s Next Chapter
The Open Banking discourse is maturing.
In Europe, the finalisation of PSD3 and the introduction of the Financial Data Access (FIDA) framework are set to institutionalise broader data-sharing regimes.
Meanwhile, the UK’s Open Banking 2.0 initiative, steered by the Joint Regulatory Oversight Committee (JROC), promises a new architecture for financial data access.
The US, however, presents a counter-narrative.
With the Consumer Financial Protection Bureau (CFPB) retreating from Section 1033, and JPMorgan tightening access to its data, a fragmentation in global approaches is becoming evident.
Financial institutions must remain agile, as these developments carry significant implications for competitiveness, innovation, and compliance.
AI Becomes Core Infrastructure
Artificial intelligence has moved beyond experimentation.
Financial firms are not only deploying generative AI and chatbots, but also embracing agentic AI-systems capable of independent reasoning and task execution.
From underwriting to anti-money laundering (AML) compliance, banks are replacing manual workflows with intelligent automation.
The second half of 2025 will likely see a surge in internal AI training and a shift away from third-party reliance, as institutions build proprietary models tailored to their regulatory and operational needs.
Tokenisation Moves from Pilot to Practice
The promise of tokenised deposits, securities, and real-world assets is now becoming reality.
Banks in Europe, Hong Kong, and Singapore are leading the charge, supported by emerging legal frameworks.
These developments are transforming wholesale payments and interbank liquidity management.
A US regulatory response is now increasingly likely, as global jurisdictions begin to set precedent.
Digital Identity Takes Centre Stage
Amid escalating digital fraud and deepfake sophistication, financial institutions are shifting towards continuous, context-aware identity verification.
The adoption of reusable digital IDs, decentralised identity protocols, and behavioural biometrics is gaining momentum.
The balancing act between frictionless user experience and robust security is entering a new phase.
Real-Time Payments Set a New Standard
FedNow’s steady progress in the US, combined with ISO 20022 adoption and stablecoin-backed cross-border payment trials, is resetting expectations.
Real-time is no longer optional—it’s the new baseline. Incumbents failing to adapt risk ceding ground to fintech disruptors built for speed.
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