Top Finance Technology Challenges Facing the Industry in 2025

Money has always made the world go round, but now it’s spinning faster than ever. Once upon a time, banks were like old riverboats drifting down a quiet stream—slow, steady, predictable. But that river’s turned into rapids and everyone’s clinging to the sides. 

Sophisticated technology trends like blockchain, artificial intelligence and big data are leading the charge. It’s exciting. But let’s not pretend everything’s sunshine and rainbows. There’s plenty of trouble brewing under that shiny surface and by the end of 2025, fintech challenges will be even harder to ignore.

Lack of Talent

There’s fierce competition for tech talent, especially in fields like machine learning and blockchain development. Stripe and Square might be able to throw around huge salaries, but smaller companies don’t have that luxury. 

Finding skilled workers is becoming more difficult as more sectors compete for the same limited talent pool, making it one of the biggest challenges in fintech. At Enablis, we help businesses overcome talent shortages by providing expert teams and hands-on support to get the work done.

Blockchain – Big Ideas & Bigger Issues

Blockchain. The word alone sounds futuristic, doesn’t it? Some call it a game-changer, one of the biggest tech trends of 2025, a revolution, the next big thing. But let’s be honest—it’s still crawling with challenges. Take Bitcoin. It’s groundbreaking, sure, but slow. Painfully slow. Seven measly transactions per second while Visa zips through thousands. That’s not a race; it’s a snail versus a cheetah.

But the banks are still using systems so old they might as well be writing ledgers on papyrus. Imagine trying to plug cutting-edge tech into something designed before the internet. It’s like trying to load a cannonball into a musket—it just doesn’t fit. It feels like there’s no synergy between banks and blockchain, so hopefully this will start to be addressed within 2025.

The Rulemakers Are Still Asleep

Meanwhile, the folks in charge of making rules are fumbling around in the dark. Fintech is racing ahead, but the law can’t even find its boots making it hard for the companies to deal with fintech regulatory challenges. One country throws open the doors, while another slams them shut. Ripple is stuck fighting a courtroom battle in the U.S., while over in Singapore, its peers are practically rolling out the red carpet.

The result equals chaos. Businesses are left guessing what’s legal and what isn’t, spending fortunes on lawyers just to keep up.

AI Biases

Artificial intelligence is supposed to make everything better, smarter, faster. And often it does. But here’s the issue – it’s not perfect. Algorithms can be just as biased as the people who write them, sometimes even worse. One study showed credit systems penalising women and minorities more than others.

Customer Education

People still don’t fully understand how to use all the new tools that FinTechs offer. Sure, Monzo has done a great job making banking simpler, but there’s still a gap in financial literacy. If FinTechs want to attract and retain customers, they have to do more than just offer cool features—they need to teach people how to use them properly.

Old Banks, New Tricks

Big banks know they’re in trouble. They’re like old hounds that see the younger pups running circles around them. They want to catch up, but their legs just don’t move as quickly anymore. 

Banks like Deutsche and HSBC are trying to keep up, spending billions on upgrades. But it’s a slow and expensive process and they’re being outpaced by nimble startups that don’t have decades of baggage holding them back.

Technological Advancements

The pace of technological change is mind-boggling. FinTechs have to stay ahead of the curve to remain competitive. From AI to blockchain, the tech trends coming down the pipeline could completely change how financial services are delivered. However, implementing these technologies comes with its own set of problems. Getting it right means huge investments in R&D and talent.

Small Businesses

Small businesses don’t have bottomless budgets, so they’re often left scrambling to keep up. But tools like PayPal and Stripe are making it easier. These platforms level the playing field, giving smaller companies a shot at competing with the giants. It’s not perfect because the fees are much higher than larger companies with higher throughput pay, but it’s a lifeline.

Access to Capital

Raising money has always been tough, but the game is even harder now. Investors are more cautious, especially with uncertain markets. For smaller FinTechs looking to scale, this can be a real roadblock. Cyera's, for example, raised over $300 million in its Series D round in 2024, but not every startup is going to get that kind of attention. The competition for funding is fierce.

Competition from Big Tech

Amazon and Apple aren’t just selling stuff anymore—they’re also getting into the financial game. Amazon’s Amazon Pay and Apple’s Apple Card are taking bites out of FinTech’s pie. These companies have big customer bases and endless resources. A small FinTech company can find itself squeezed out by tech giants who don’t need to make a profit right away.

Wrapped Up: Fintech Challenges & Opportunities

Nobody knows exactly where we’re headed, but one thing’s clear – the road to 2025 won’t be smooth. Blockchain needs to pick up the pace. Regulators need to get their act together. AI has to be smarter yet fairer and banks have to learn how to run without tripping over their own feet. It’s going to be a bumpy ride, but for the ones who can figure it out, the rewards will be worth it.