FINTECH in 2025!
It’s been a whirlwind since my last Fintech predictions for 2024. I forecasted AI ubiquity, the end of BaaS, digital twinning, and Elon Musk’s ambition to dominate Fintech. Some of these predictions came true, others fell flat, but as they say, truth is stranger than fiction. Who could have predicted multiple global conflicts, the tumultuous events surrounding the U.S. election, a crypto surge, and the continuation of gun violence?
Reflecting on my first Fintech Top Ten Predictions of 2017, seven years feels like an eternity in this rapidly evolving industry. With that in mind, I hope my predictions for 2025 bring some excitement and anticipation for the new year. I’m thrilled to share them with you.
10. GPU Inequity
Computational resources have always been in high demand. Cloud infrastructure providers have significantly lowered the barriers for individuals and businesses to access computational power and drive commerce. However, with the rising need to extract knowledge from data, GPU consumption has skyrocketed. I predict this surge in demand will lead to a new form of imbalance—a “GPU inequity.”
Access to computational resources will become increasingly limited, leaving many behind. This will exacerbate inequalities, particularly in accessing artificial intelligence technologies. Banks without sufficient GPUs will struggle to compete with Fintechs that leverage data more efficiently, resulting in advantages in customer acquisition and margins for the latter.
9. 20-Hour Work Weeks
Who wouldn’t love a 4-hour workday? Maybe some of you have already achieved this, but clock it as an 8-hour shift (don’t worry; your secret is safe). Jokes aside, we should focus on productivity rather than hours logged. How do we maintain output while working less? Automation.
Fintech is leading the way in reducing the hours humans need to complete tasks. Many large Fintech companies have replaced entire call centers with AI agents and halted hiring, citing automation’s capabilities. This begs the question: How will we use our newfound free time, and more critically, how will we make a living? Perhaps only AI can answer that. Does a 20-hour workweek still sound appealing?
8. AI : The Birth of a New Religion
I predict groups of technophiles will begin forming a new religion centered around artificial general intelligence (AGI). While this may sound sacrilegious to some, it’s not hard to imagine people worshiping a powerful, intangible, and potentially dangerous entity.
This idea draws from the concept of human-technology singularity, where carbon- and silicon-based intelligence merge and become indistinguishable. Already, advancements in brain-computer interfaces help quadriplegic patients communicate via embedded devices. In the near future, we might make payments with our minds and move beyond biometrics to telepathy.
7. New Rails and Adoption
In 2025, we’ll finally see a brand-new payment rail that transcends borders, traditional banking protocols, and privatized systems like Visa and Mastercard. Adoption will begin on platforms such as X (formerly Twitter, with 600 million users) and WeChat (1.3 billion users).
A new class of merchants, akin to Amazon, will emerge, accepting payments on these rails and providing everyday goods and services. True consumer and business adoption will follow, with non-fiat currencies serving as the medium of exchange. This shift, led by a handful of visionary entrepreneurs, will fundamentally change how we live.
6. Radical Disappearance of Jobs and Industries
Translators and customer service agents have nearly vanished, and other routine jobs are following suit. By 2025, automation and AI will replace even semi-routine roles. Fintech jobs, including accountants, bank tellers, finance personnel, and programmers, are also on the chopping block.
While this doesn’t devalue human lives, we must acknowledge practical concerns: we all have bills to pay. Thankfully, global birth rates are plummeting, especially in developed nations. With fewer consumers in the future, competition for resources may decrease, potentially lowering living costs. It’s a complex issue, but perhaps a Junior Data Labeler job awaits you.
5. Disintermediation in Education
As a long-time teacher, I’ve witnessed dramatic changes in how we teach and learn. Teaching, however noble, isn’t scalable. With advancements in technology, foundational knowledge (e.g., the first two years of college) can be learned at one’s own pace, reducing the need for traditional classrooms.
This shift could free up 50% of students’ critical learning period for specialized fields. Consequently, we may see a reduction in teaching staff and physical spaces, reallocating resources toward advanced education. The private sector could benefit from an earlier influx of highly prepared professionals.
4. Disintermediation in Finance
Peer-to-peer (P2P) transactions will see a resurgence in 2025. While platforms like Zelle and PayPal feel peer-to-peer, they still rely on central banking systems. I predict the rise of true P2P transactions across sectors like real estate and investments.
Financial advisors, real estate agents, and investment bankers will become obsolete as unbiased, silicon-based agents replace them. Trust in software will grow, driving increased adoption of automated solutions.
3. The Age of the Fintech Renaissance
Advancements in computational power, AI, and automation will spark a wave of Fintech innovation. Startups will emerge at breakneck speed, creating fierce competition in every sector. Incumbent Fintechs will face extinction unless they consolidate.
A new generation of Fintechs will even build tools to create other Fintechs. 2025 will mark the beginning of what’s possible, ushering in a golden age of innovation.
2. New A.I. Tax
Currently, there’s insufficient energy production to achieve AGI. To synthesize human knowledge into a singularity, we’ll need more power—literally. While Elon Musk dreams of interplanetary colonization, AGI is better suited for space travel than humans.
How do we fund this? Taxes, of course. Once AI alleviates our burdens, we’ll likely pay an AI tax to develop the next generation of intelligence. Those not contributing will be “taxed” into productive roles. Who will become the new Stripe of AGI?
1. The Best 10 Years of Our Lives
The era of stringent regulation in the United States is nearing its end. Common sense will prevail, and one-size-fits-all rules will give way to a more nuanced approach. Agencies like the CFPB, OCC, FDIC, and SEC will focus on prosecuting real criminals rather than politically convenient targets.
We’ll embrace global competition and reward collaboration, prioritizing innovation over restrictive regulations. My parting words: “The market always wins.”
Have a tremendous 2025, and see you next year.
-Timothy Li
Timothy Li is a serial tech entrepreneur. He spent the past 20 years in financial technology, focusing on banking and Fintech products while building mission-critical platforms for Intel Corporation and JPMorgan Chase. He currently serves on multiple Fintech advisory boards worldwide. Tim is also a professor at the University of Southern California, Viterbi School of Engineering, where he enjoys helping hundreds of students build their high-tech startups. Follow on LinkedIn.