Financial technology (Fintech) is shifting into high gear in 2025, with the industry poised for unprecedented growth and transformation.
Emerging technologies like Artificial Intelligence (AI), quantum computing, and Central Bank Digital Currencies (CBDCs) are set to revolutionise the sector, redefining back-office operations, security, and global finance.
The fintech market is projected to reach $340 billion in 2025, with a staggering Compound Annual Growth Rate (CAGR) of 16.5 per cent expected to drive the industry’s value to $1,152 billion by 2032.
This rapid expansion will give rise to new fintech sectors and banking services, creating fresh opportunities for innovation and investment.
Investors are increasingly prioritising decentralised and autonomous fintech products, while fintech companies are adopting a more collaborative and selective approach to projects.
To attract funding, businesses must offer competitive, in-demand solutions that address the evolving needs of the market, making it crucial to stay ahead of the curve on fintech trends.
Femi Hanson, Head of Marketing and Communications, PalmPay, while assessing upcoming Fintech startups told the News Agency of Nigeria (NAN) on Monday that as the industry evolved, the startups must prioritise problem-solving and understand users to drive financial inclusion.
According to Hanson, prioritising problem-solving enables startups to develop innovative solutions that address the core needs of their users.
“Innovation is crucial, but it must be user-friendly to encourage widespread adoption of the product,” he said.
The PalmPay executive emphasised that understanding user needs was fundamental to seamless customer onboarding and driving financial inclusion.
“Startups must design solutions that are intuitive, accessible, and meet the evolving needs of their customers,” Hanson noted.
Highlighting the importance of scalability, Hanson said that startups must demonstrate their ability to adapt to changing variables influencing user adoption.
“Investors look for solutions that can scale, and startups must show that their solutions can evolve with the market,” he said.
Hanson added that investors were increasingly looking for startups that could demonstrate regulatory compliance, strong user adoption, and innovative solutions.
Reiterating the need for compliance, he stressed that startups must prioritise regulatory adherence to establish trust with users and stakeholders.
“Compliance is crucial for building trust, and startups must work closely with regulators to ensure their solutions meet all legal requirements,” he said.
Hanson also highlighted the transformative power of technological advancements, particularly Artificial Intelligence (AI).
“By leveraging tools like AI, startups can enhance user experience, optimise processes, and design solutions that meet market needs,” he said.
According to Hanson, AI-powered solutions can support scalability and adaptability, allowing startups to remain competitive in an ever-evolving landscape.
“This enables startups to create impactful and sustainable solutions that drive financial inclusion,” he noted.
Hanson predicted that as the fintech industry continued to grow, embedded finance would transform business operations by allowing companies to seamlessly integrate financial services into non-financial platforms.
“This fast-growing trend enhances convenience and allows companies to handle monetary operations seamlessly within their ecosystems,” he said.
As the Central Bank of Nigeria (CBN) continues to drive financial inclusion through its strategic initiatives, Hanson reiterated the need for fintech startups to prioritise problem-solving, scalability, and compliance.
“By doing so, startups can drive financial inclusion, achieve success, and contribute to the growth of the fintech industry,” he said.
