It’s a time of reflection and anticipation at The Fintech Times throughout December, as we look back at developments and trends over the last 12 months and forward to the year ahead.
We’re sharing insights from industry leaders on 2024’s key takeaways and what’s set to shape 2025, with the spotlight today on data – the cornerstone of decision-making and innovation in the financial world.
Data is a driving force in fintech, underpinning everything from fraud prevention to smarter decision-making. As businesses strive to stay ahead, data is no longer just a resource – it’s the foundation for innovation and resilience.
This year saw organisations leveraging data in new ways, but the real challenge lies ahead: modernising systems and adapting to the regulatory changes that will shape its future.
Collaboration and financial strategy
Soren Westh-Lonning, CFO, Pleo
As global uncertainty continues, collaboration and data competence will be critical for addressing potential surprises, according to Soren Westh-Lonning, CFO of Danish spend management unicorn Pleo.
“For financial teams, this means doubling down on financial and risk planning to navigate potential surprises. With budgets shrinking and scrutiny increasing, collaboration across departments will be critical. In fact, 60 per cent of UK businesses attribute poor spending decisions to a lack of interdepartmental communication, understanding and alignment.
“The increasing importance of data is going to heighten the importance of having the right tech stack in place. AI tools will be key in taking the heavy lifting and freeing up teams to do more strategic work but the challenge will be figuring out how to really get value out of AI without getting bogged down in the hype.
“The hunt for finance talent will focus more on data competence and business acumen and collaboration to increase the impact to business. Finance teams will put greater focus on candidates with strong technological expertise alongside traditional financial skills. Upskilling current team members in data analytics and business storytelling will also be key to staying competitive.”
Breaking down data silos
Viren Patel, financial services industry strategist at Workday
The importance of collaboration extends beyond teams to the systems that underpin them, says Viren Patel, financial services industry strategist at payments provider Workday. He highlights the need to address siloed data in financial services, which continues to hinder agility and efficiency.
“To date, the industry has been plagued by disconnected point solutions, manual processes and data silos that create complexity and cost while hampering agility,” said Patel.
“Overcoming this will require a focus on intelligence and automation. AI and predictive analytics will enable businesses to accelerate workflows, untap data insights and respond faster to market shifts. While the financial sector has often been slower to deploy new technologies than others, the proven benefits of AI – from better customer service to fraud detection – mean we can expect adoption to rapidly ramp up in 2025.”
Leveraging data to combat fraud
For Andy Renshaw, SVP of product strategy at financial crime prevention platform Feedzai, breaking down silos is only part of the challenge – making effective use of the unlocked data is just as important.
“Data is the big story in fintech” Renshaw says. “2024 really brought a shift in the perceived value of external data sources and data sharing with multiple shared data sources and programmes springing up globally.
“2025 is likely to see this continue with organisations looking for new and powerful data sources that deliver insight beyond a customer’s transactions such as cyber based insights and those focussed on trust.”
Modernising data infrastructure
Dana Lunberry, head of data strategy at SBS
Unlocking the full potential of data often depends on the systems used to manage it. Dana Lunberry, head of data strategy at SBS, formerly Sopra Banking Software, highlights the growing importance of modernising data infrastructure to support analytics and decision-making.
“Although banks have ample data, they have historically lacked the systems and processes to leverage it effectively,” she said. “However, recent technological advancements have changed this landscape. In the coming year, we’ll see financial organisations investing more heavily in modernising their data infrastructure.
“For many, this will include enhancing data management capabilities so that AI-driven tools, such as generative AI and machine learning models, can effectively personalize customer experiences, optimise risk management and automate compliance – enabling a shift from reactive data handling to proactive, predictive decision-making.
“AI-powered data warehouses and real-time analytics platforms now allow institutions to derive deep customer insights rapidly, scaling and adapting services at speeds unimaginable a decade ago. This evolution will enable banks to transform decades of legacy information and new data streams into innovative products, services and experiences, creating a significant competitive advantage.”
Regulatory shifts driving data’s potential
Greg Francis, CEO, Access Partnership
Building modern infrastructure is only part of the story; the regulatory environment surrounding data is also evolving. Greg Francis, CEO of tech policy consultancy Access Partnership, highlights how recent regulatory changes are poised to reshape how data is shared and utilised in financial services.
“From 2025 we will see regulatory initiatives aimed at winding back some of the restrictions on customer financial data sharing – starting in the US,” he commented. “October 2024 already saw the US Consumer Financial Protection Bureau (CFPB) launch a set of new rules to enable open banking there, which will increase the portability of consumer financial transaction data so people can switch financial institutions and use new fintech more easily.
“And regulatory trends spread: if the US continues to liberalise data use, other countries have a strong incentive to lower regulatory barriers to attract companies to come, invest, and experiment with innovations. If they don’t, they will miss out on the industrial advantage that liberalising rules can afford them.”
Migrating from legacy systems
Dharmesh Ghedia, technical director, Qodea,
While regulatory changes pave the way for greater data sharing, many organisations must first address internal hurdles, particularly outdated database systems. Dharmesh Ghedia, technical director at digital solutions provider and Google Cloud technology partner Qodea, highlights how modernisation will be a key focus in 2025 as financial institutions transition away from legacy infrastructure.
“Many financial institutions rely on legacy database systems but over the next year, the financial services sector will be pushed towards data and database modernisation to harness AI’s full potential − a technology that relies heavily on a robust data foundation.
“Banks have historically been hesitant to overhaul their databases, concerned about the cost, effort and risks involved. However, banks will find that their outdated systems limit the effectiveness of AI to improve customer experience, security and fraud.
“While financial institutions have widely adopted cloud and SaaS solutions, database migration has often been pushed aside due to the complexity and perceived risks. In 2025, banks will realise the risk brought by avoiding modernising databases becomes greater risk than if they don’t.
“By migrating databases to the cloud, banks will be better positioned to capitalise on centralised data, take advantage of emerging technologies and drive innovation more effectively. This will ultimately transform banks’ operational resilience and enhance their abilities within regulatory compliance and security whilst also optimising cost by the move from complex on-premise databases to the cloud and leveraging the scalability it provides.”
Using data for smarter growth
With modernised systems in place, the next step is harnessing data for strategic growth, comments Rob Israch, president of accounts payable automation platform Tipalti, who sees 2025 as a year when finance leaders will rely on data to regain confidence in their planning and investment decisions.
“While there will be some opportunity to reignite business growth, as interest rates settle and inflation cools, growth projections for the coming year remain modest,” said Israch. “We think that finance leaders will have greater confidence in their planning and will be able to invest more freely, as cost structures are likely to stabilise compared to previous years.
“That said, sudden rate changes loom over businesses and may still complicate financial forecasting, so we can expect finance leaders to be preparing with sensitivity models to manage risk. Implementing strategies to control operational costs without sacrificing customer satisfaction will be key in 2025. Operational expense costs are often more predictable than revenues, so managing costs carefully can mitigate forecast risk in other areas.
“Meanwhile, navigating resource allocation in a volatile market will remain challenging for many, especially with fluctuating stock prices. Successful businesses will focus their investments on a few key areas, guided by recent performance trends, core differentiation and product-market-fit. We’ll see a greater emphasis on leveraging both internal and external data to gain a strategic advantage.
“Automation will continue to rise in adoption to streamline processes and reduce operational inefficiencies, enabling them to navigate volatility with greater agility. This will ultimately enhance decision-making and support more accurate, data-driven planning.”
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