Fintech’s Future: Platforms, Embedded Finance, and the Rise of AI

Fintech continues to evolve at an extraordinary pace. What began as a set of niche, vertically focused services has grown into a vast ecosystem of full-stack platforms and integrated financial experiences. According to HSBC’s latest research, the sector is entering a new phase—driven by platform expansion, embedded finance, and the accelerating influence of artificial intelligence (AI).

Let’s take a closer look at the biggest shifts shaping the global fintech landscape in 2025.

Platformification: Fintechs Go Full-Stack

A defining trend is the horizontal expansion of fintechs. What were once focused players in payments, lending, or neobanking are now building comprehensive platforms to capture more of the financial value chain. This expansion is driven not only by growth ambitions but also by pressure to diversify revenue and improve profitability.

Take Stripe and Adyen. Originally dominant in payments infrastructure, both have added services like business banking, financing, and fraud prevention—building ecosystems around their core offerings. On the digital banking side, players like Revolut and Chime have moved beyond deposit-taking to offer investing, credit products, and insurance.

Lending pioneers are following suit. SoFi and LendingClub, once narrowly focused on loans, have evolved into consumer finance platforms. SoFi’s expansion into banking products and its tech infrastructure play (via Galileo and Technisys) show how fintechs are shifting toward offering “banking-as-a-service” at scale.

This convergence reflects a strategic realization: winning in fintech increasingly depends on owning the customer relationship end-to-end—and having the tech stack to scale new services fast.

ERP and Accounting Platforms Enter the Fintech Arena

Another powerful trend is the growing presence of ERP systems and accounting platforms in financial services. Traditionally seen as back-office infrastructure, these systems are now becoming delivery vehicles for embedded finance—especially for small and medium-sized enterprises (SMEs).

Take Intuit, the maker of QuickBooks and Credit Karma. By embedding payments, cash flow tools, and lending options directly into the software SMEs already use, Intuit turns routine accounting into a financial command center.

Similarly, Xero in New Zealand has expanded through partnerships with companies like Gusto (HR and payroll) to offer a broader range of services. SAP has enhanced its ERP suite with data analytics and AI capabilities, offering large enterprises a seamless way to integrate financial decision-making into everyday workflows.

What makes this shift powerful is the data advantage these platforms hold. They know their users’ finances in real time—allowing for smarter underwriting, proactive offers, and tighter integrations across business functions.

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The Rise of Embedded Finance in Advanced and Emerging Markets

Embedded finance—offering financial services natively within non-financial apps—is one of the fastest-growing segments in fintech, reshaping both developed and emerging markets.

In Southeast Asia, super-apps like Grab (ride-hailing, food delivery) and Line (messaging, content) are embedding payments, savings, insurance, and lending directly into their ecosystems. This is often the first touchpoint with financial services for many users, leapfrogging traditional banks.

In the U.S., retail giant Walmart is embracing embedded finance through its backing of fintech startup One Financial. With over 240 million customers per week, Walmart is leveraging its scale to offer full-spectrum banking services—transforming from retailer to financial platform.

Fintechs are also becoming providers of embedded infrastructure. SoFi’s acquisition of Galileo and Technisys gave it the backend to power embedded finance solutions for other companies. Similarly, card issuing platform Marqeta now enables non-financial firms to offer consumer finance products, expanding its reach far beyond traditional fintech boundaries.

A Wave of Consolidation Reshapes the Landscape

As fintechs broaden their offerings and new entrants like ERP providers step into the financial ring, the competitive landscape is becoming more complex. The lines between fintechs, tech companies, and incumbents are blurring—leading to a wave of consolidation.

HSBC notes that this intensifying competition is triggering strategic moves on both sides. Challenger fintechs are partnering or merging to defend territory, while traditional players are acquiring to stay relevant.

Notable recent deals include Stripe’s $1.1 billion acquisition of Bridge Network, a stablecoin platform, and FIS’s $13.5 billion purchase of Issuer Solutions to enhance its digital banking capabilities.

As pricing pressure and customer acquisition costs rise, expect more horizontal M&A activity aimed at achieving scale, acquiring tech, or defending distribution.

AI: Fintech’s Next Growth Engine

While overall venture capital (VC) funding in fintech has slowed from its 2021 highs, interest remains strong in AI-powered fintechs. Some of the most resilient segments—such as insurance and CFO tech stacks—are thriving on the back of AI innovation.

In insurance, AI is automating underwriting and claims processes, enabling startups like Ramp and Tab to streamline paperwork-heavy workflows. On the finance operations side, AI is being deployed to automate accounts payable, receivables, and reconciliation—freeing CFOs from manual processes.

Interestingly, areas that haven’t embraced AI—like some segments of alternative lending—are seeing a steeper decline in funding, illustrating how closely future investment is tied to AI integration.

Looking Ahead: Fintech’s Evolution Accelerates

The fintech industry’s shift from vertical specialists to broad platforms, combined with the rise of embedded finance and AI, is reshaping the future of financial services. Whether it’s Stripe offering stablecoin tools, Walmart providing banking services, or ERP platforms enabling SME credit—financial experiences are becoming more integrated, contextual, and intelligent.

HSBC’s report makes it clear: fintech’s next chapter will be shaped by those who can scale across sectors, leverage data to deliver value, and embed finance where customers already are.

The winners won’t just be banks or startups—they’ll be platforms.