In 2024, Pay by Bank (PBB) emerged as a serious alternative to traditional card payments, according to Philip Benton, Principal FinTech Analyst at Omdia. PBB, which uses banking rails to process payments, has struggled with consumer adoption due to an inconsistent user experience in the past. However, advancements in APIs and the growing global adoption of open banking have boosted PBB’s popularity, especially among leading merchants seeking lower processing fees than those associated with card payments.
Global companies such as JustEat, Woolworths, Ryanair, Walmart, and Lastminute.com have already integrated PBB into their systems, with the payment method gaining traction in e-commerce. Francesco Simoneschi, CEO of TrueLayer, highlighted the significant rise in consumer adoption, stating that in the UK alone, Pay by Bank transactions have tripled in the past three years, reaching 21 million in 2024. The UK government is also supporting the shift towards PBB, with its National Payments Vision promoting open banking to drive seamless account-to-account payments.
Alongside PBB, 2024 witnessed continued growth in generative AI (GenAI) within the financial services industry. Banks globally have been keen to integrate GenAI into their offerings, with notable advancements like NatWest’s Cora+ AI-powered virtual assistant and CaixaBank’s rollout of its GenAI project, GalaxIA. By Q3 2024, GenAI start-ups had raised over $20 billion in funding, signaling strong investor confidence in AI-driven solutions for financial services. Start-ups such as Canada’s yPilot and the UK-based fintech Covecta have launched innovative GenAI platforms, with expectations of further growth in this space.
Hyper-personalization has also emerged as a significant trend in global banking, driven by AI and machine learning. Financial institutions are increasingly focusing on delivering tailored services based on individual customer needs and regional preferences. Marcin Glogowski, SVP Managing Director for Europe and UK CEO at Marqeta, emphasized the importance of integrating financial services seamlessly into the daily lives of consumers. Trends such as personalized credit offerings and buy-now-pay-later (BNPL) solutions are booming, and Glogowski anticipates further customization of BNPL payment plans in real time through existing payment apps.
As 2025 approaches, fintech is poised for continued innovation, with PBB, GenAI, and hyper-personalization leading the way. Additional trends include a growing focus on central bank digital currencies (CBDCs), digital assets, green finance, financial inclusion, and the development of new regtech solutions to address cybersecurity and regulatory challenges. As technology evolves, financial institutions are set to drive even greater disruption, making 2025 an exciting year for the industry.
