Top fintech trends for H2’2025

It’s been a more challenging start to 2025 than expected for the fintech market, given geopolitical tensions, the cost of capital and other headwinds. But a number of sectors continued to attract significant interest, including digital assets and blockchain, AI and insurtech, helping to keep the fintech sector relatively resilient as a whole outside of the pull back in very large M&A transactions. Heading into H2’25, this resilience will likely continue to help keep investment relatively stable until market conditions stabilize enough for deals to pick up again.

Here are the top predictions for fintech in H2’2025

Fintech investors being very selective across deal types

Globally, fintech investors are expected to continue to be very selective in their funding, focusing VC investments on companies with strong fundamentals and the ability to turn a profit and M&A transactions on very strategic acquisitions.

Stablecoins gaining steam amid regulatory push

Stablecoins will likely continue to be a bright spot — along with the digital assets and currencies sector more broadly — as the US passes the GENIUS Act and other jurisdictions around the world move forward with crypto regimes aimed at creating workable regulatory models, including leveraging stablecoins to their fullest extent.

Corporates divesting non-core assets

Globally, the pressure to cut costs may see corporates continuing to put a laser focus on their core assets and divesting themselves of underperforming assets and business units.

Interest in the use of AI agents to enable efficiencies growing very rapidly

AI will likely continue to be a big bet across the fintech sector, although there is expected to be significant growth in interest as it relates to the development and use of AI agents — particularly in areas like financial crime and fraud, operational processing, frontline enablement and regtech.

Jurisdictions reevaluating and simplifying regulatory regimes in order to increase competitiveness

As the US embraces a softer approach towards regulation, other jurisdictions are looking at their regulations and considering methods to simplify them without affecting consumer protections.