With Citi analysts pointing to generative AI and digital assets as two transforming drivers, technological innovation will define fintech in 2025. Businesses incorporating generative artificial intelligence into their processes are supposed to provide fresh income sources. Along with payment behemoths like Visa (V, Financials) and Mastercard (MA, Financials), Clearwater Analytics (CWAN, Financials), Alkami Technology (ALKT, Financials) and Q2 Holdings (QTWO, Financials) are positioned to gain from this trend.

Revenue-oriented artificial intelligence applications will probably see measured implementations where sustained development takes precedence over quick deployment. Emphasizing profitability and innovation to satisfy changing client expectations, this strategy mirrors the general industry attitude.

Digital assets, however, may have a comeback in 2025 especially with more regulatory certainty. For wholesale and cross-border trading, Citi notes stablecoins as a possible revolution. Fintech startups could create new platforms to solve worldwide payment inefficiencies as global frameworks for digital currencies settle.

Citi's view also points out the possibility for M&A activity in the fintech industry, thereby generating more chances for businesses pushing digital finance and artificial intelligence. With these technologies front and foremost, fintech has interesting prospects for both industry players and investors, thus redefining financial services in the next year.