Article

5 fintech industry trends shaping modern procurement

Learn about AI's rise, payment shifts, and upcoming procurement challenges.

Written By
Brooks Rocco
Content Marketing Manager at Zip

Just five years ago, we were discussing mobile wallets as a novelty. Now, it's all about AI-driven fraud detection and embedded finance. The fintech landscape is in constant motion, and it's imperative for businesses to stay ahead of the curve. This article dives deep into the heart of the matter, dissecting the most important fintech industry trends shaping our financial future.

We surveyed over 200 fintech executives on the current state and future of the industry, uncovering compelling insights into AI adoption, its transformative impact on the workforce, and the key challenges the industry faces in the wake of never-before-seen technology and processes. 

Key takeaways

  • AI adoption is universal, with over 99% of fintech executives already investing in new tools and tech. 
  • 63.85% of fintech executives estimate their employees save over two hours of work per day thanks to AI, shifting their focus from routine tasks to strategic initiatives.
  • Over half (54.67%) of fintechs actually increased their head count after implementing AI tools—only 27.6% paused or slowed hiring.
  • 41.78% of fintech companies cite technology adoption and integration as the most pressing procurement challenge they anticipate within the next five years. 
  • Payments is expected to hold the highest market share in the next five years, according to 30.5% of fintech executives, followed by investment management (25.4%). 

1. The fintech industry is all-in on AI

It seems like AI investment is the new fintech black—everyone's doing it. Of the 213 fintech executives we surveyed, only one claimed they weren’t currently investing in AI products or software

The AI in fintech market is projected to reach $61.6 billion by 2032—more evidence that companies are fully embracing machine learning, natural language processing, and predictive analytics for increased efficiency and productivity. Accounts payable? Automated. Credit assessment? AI-driven. Trading? Algorithmic. Personalized advice? AI delivers. The pandemic didn't just nudge digital banking; it sent it into overdrive. And with that came the need for AI to manage the deluge of online financial activity. 

This investment in AI is clearly paying dividends. Our survey revealed that a remarkable 88.67% of fintech executives report increased profitability over the past year. 

Escalating threats are a key factor driving AI growth

AI is also being honed as a valuable weapon against the growing threat of cyberattacks and financial fraud. According to our findings, a staggering 51.6% of fintechs cite data privacy and security as their top regulatory challenge, indicating high pressure to protect sensitive information.

This vulnerability is compounded by complex webs of third-party suppliers—in fact, 94.8% of fintech executives have faced vendor-related risks in the past three years, with a shocking 61.9% experiencing three or more incidents

Bar graph illustrating how many fintech companies experienced 1-2, 3-4, 5-6, 6+, or no vendor-related threats within the past three years.

AI's role in risk management within fintech extends beyond reactive measures. Machine learning algorithms can analyze vast transaction patterns, user behavior, and network traffic datasets to build robust predictive models. This allows fintech companies to anticipate and prevent sophisticated attacks, such as deepfake fraud or zero-day exploits, that traditional security systems might miss. On the same note, procurement risk orchestration solutions have automated third-party risk checks to validate compliance and legitimacy from day one, which is becoming increasingly important amidst shifting global regulations.

Despite the possibilities of AI, fintechs tread lightly

While AI holds transformative potential for fintech, its adoption is not without controversy. A staggering 89.2% of fintechs anticipate AI and machine learning will be the focus of increased scrutiny in the coming years.  

While AI promises to streamline operations and enhance security, concerns about bias, transparency, and job displacement remain the elephant in the room. These concerns have merit; algorithms are trained on data, and if that data reflects existing societal biases, artificial intelligence will preserve them. Moreover, the "black box" nature of some AI models makes it difficult to understand how decisions are made, raising questions about accountability and fairness.

As AI becomes more deeply integrated into financial services, regulators are grappling with how to ensure ethical and responsible deployment. The potential for AI to amplify existing inequalities—or even create new ones—requires careful consideration of its impact on consumers and the financial system as a whole. All eyes are on the industry to see how it handles the challenging task of balancing innovation with accountability.

2. Most fintech employees save over 10 hours per week thanks to AI

Fintech employees find their daily tasks reshaped by the quiet efficiency of AI and automation. Our survey data shows that nearly two-thirds (63.85%) of leaders believe these tools save their employees over 10 hours per week, and 29% of leaders said their employees save 20 hours or more. 

Quote from Philip Ideson, Founder and Managing Director of Art of Procurement, regarding how procurement teams will be pressured to do more with less using AI and automation tools.
Discover more expert insights in our guide: 25 Procurement Predictions for 2025

AI has become an essential part of nearly every facet of the industry. Take, for example, the once-tedious task of invoice processing. AI-powered systems, leveraging optical character recognition and machine learning, now automatically extract key data like vendor details, invoice numbers, and line items, eliminating manual entry. This means no more typos or hours spent on repetitive data input, freeing employees to focus on financial analysis or strategic planning. 

Pie graph resembling a clock displaying the average time fintech employees saved after adopting AI and automation tools.

Customers are also reaping the benefits

AI is also addressing the challenge of customer service. Chatbots, powered by natural language processing, have been shown to handle up to 80% of queries for financial institutions, providing instant, 24/7 support for common issues. Virtual assistants are also becoming more popular, with over 40% of consumers preferring this type of interaction over using a mobile app or going to a physical branch. 

Beyond simple queries, companies can leverage AI's data analysis and automation capabilities to understand individual customer preferences and tailor service offerings. This allows agents to focus on complex, high-value interactions, equipped with detailed customer insights to provide more personalized and effective support with less manual effort.

3. More than half of fintechs increased hiring despite the rise of AI

Scale weighing the difference in percentage between fintech companies who increased headcount after adopting AI technology vs. those that paused hiring or claimed it had no effect on hiring.

Contrary to popular belief, the robots aren’t taking over our jobs. In fact, 17.29% of fintech executives claimed AI hasn’t affected their hiring efforts at all, while over half (54.67%) have actually increased their head count since introducing new technologies to their organizations. 

This data paints a clear picture: The fintech industry is not witnessing a robotic revolution that displaces human workers. Instead, it's experiencing a technological evolution that demands a skilled workforce. This dispels the myth of widespread job loss and highlights the reality that AI is augmenting, not replacing, human roles. 

Our survey also revealed that 55.4% of fintech executives cite talent shortage as the second biggest barrier to AI adoption, second only to data availability at 64.8%. The push for AI in fintech is not about replacing jobs, but filling them with individuals who possess the specialized skills needed to navigate this new technological landscape.

Some fintechs are exercising caution

While the overall trend points toward increased hiring and a positive impact of AI on the fintech workforce, it's important to acknowledge that some companies are proceeding with caution. Specifically, a combined 27.6% of fintech executives have either slowed or paused hiring efforts entirely. This demonstrates that the integration of AI is not a uniform experience across the industry. 

Quote from Gabe Perez, Chief Strategy Officer of Rise Now, regarding how fintech executives should focus on upskilling employees in AI and automation in lieu of hiring new employees.

For some, the uncertainty surrounding the long-term impact of AI on job roles and the need for workforce restructuring is leading to a more conservative approach to talent acquisition. These companies may be focusing on upskilling existing employees or reassessing their organizational structures to better align with the evolving technological landscape before committing to new hires.

4. Technology adoption and integration will be the next big procurement challenge

The digital tide is surging, and fintech procurement is at its forefront. Our survey reveals that 41.78% of fintech companies foresee technology adoption and integration as their biggest procurement hurdle in the next five years. Beyond simply buying new tools, the real challenge lies in harmonizing them with existing systems through effective orchestration. 

Quote from Aaron Mcmillan, Editor of Procurement Magazine, regarding how we’ll continue to see increasing investment of AI technology in 2025.

The challenges are manifold. For example: 

  • Legacy systems stubbornly resist integration: Older systems, often built on outdated architectures, struggle to connect with modern cloud-based solutions.
  • Data silos hinder seamless information flow: Disparate data sources create fragmented views, impeding data-driven decision-making and hindering automation.
  • The sheer pace of innovation creates a constant state of flux: The rapid emergence of new technologies requires continuous adaptation and integration efforts.
  • Security and compliance complexities: Integrating new technologies introduces security vulnerabilities and compliance challenges.

And that’s not to mention a lack of skilled personnel, vendor lock-in, and cost and resource constraints. But the most significant hurdle may lie in the human element. Introducing new technologies often requires a shift in workflows, a learning curve for employees, and a willingness to embrace change. While technology adoption was cited as the biggest hurdle, an additional 20.2% of executives believed addressing talent shortages and skills gaps would prove just as challenging in the procurement sector as new technology comes into play. 

Procurement orchestration eases technology adoption

Fintech companies facing technology adoption challenges need a clear, unified approach. Procurement orchestration simplifies the complex process of bringing new technologies onboard. 

By centralizing diverse procurement workflows and providing seamless integrations with existing ERP and CRM systems, information can flow freely, eliminating data silos and promoting successful tech adoption across the organization. The numbers speak for themselves—companies that adopted orchestration saw 55% faster purchasing cycles and twice as many compliant purchases. 

5. Payments is expected to dominate the market share

The fintech landscape is in constant flux, but one area consistently emerges as a dominant force: payments. According to our survey, 30.5% of fintech executives anticipate payments to hold the largest market share over the next five years, a testament to its fundamental role in the financial ecosystem. Recent reports back their claims—digital payments are expected to reach a massive transaction value of $20.37 trillion in 2025, and $36.75 trillion by 2029.

bar graph depicting the top three areas of fintech anticipated to hold the largest market share within the next 5 years, along with their projected 2029 value.

This projection reflects the ongoing transformation of how individuals and businesses transact, fueled by the rapid rise of digital payments, mobile wallets, and real-time settlement technologies. Frictionless, secure, and instant payments are not just what consumers want; they're what businesses need. The sheer volume of transactions, coupled with the increasing demand for cross-border payment solutions, positions payments as a cornerstone of fintech innovation and growth. 

Embedded finance is changing the game

Blockchain, AI, and biometrics are reshaping payment infrastructures, allowing for greater efficiency, security, and personalization. The growth of embedded finance, where payment capabilities are seamlessly integrated into non-financial platforms, expands the reach and accessibility of payment services. This integration eliminates the need for users to navigate to separate financial institutions, streamlining transactions and expanding access to financial services, especially for underserved populations.

For example:

  • Shopify offers Shopify Payments, which allows merchants to accept payments directly within their online stores, eliminating the need for third-party payment gateways. It also offers Shopify Capital, providing small business loans directly to merchants.
  • Affirm provides buy now, pay later (BNPL) services that are embedded directly into e-commerce checkout processes, allowing customers to finance purchases in installments.
  • M-PESA embeds financial services into mobile phone networks, reaching millions in sub-Saharan Africa who lack traditional banking access.

B2B payments are in on the action

B2B payments are undergoing a similar evolution, driven by the same digital forces reshaping consumer transactions. Businesses are demanding faster, more transparent, and more integrated payment solutions. Real-time payments, automated invoicing, and seamless integration with procurement systems are no longer nice-to-haves; they're table stakes. 

Consider the pressure on procurement teams to optimize cash flow and manage supplier relationships. Modern B2B payment solutions, integrated directly into procurement platforms, provide this visibility and control.

The shift toward digital B2B payments is also driven by the need for enhanced security and compliance. Fraud prevention, particularly in high-value transactions, is essential. Blockchain technology, for example, is gaining traction for its ability to create immutable transaction records, reducing the risk of tampering and disputes.

In addition, global regulations are tightening, demanding greater transparency and accountability in cross-border payments. Procurement teams, responsible for managing complex supplier networks, need payment solutions that can adapt to these evolving requirements. 

Stay ahead of the game with Zip procurement orchestration

The fintech industry is a relentless force, driven by innovation and shaped by evolving demands. From the AI-powered revolution transforming daily workflows to the dominance of digital payments, the trends are clear: Efficiency, security, and seamless integration are no longer optional—they're the price of entry. 

To navigate this complex landscape, fintech companies need more than just cutting-edge tech; they need streamlined, integrated processes. That's where procurement orchestration comes in. Stop wrestling with fragmented systems and manual workflows. Zip centralizes procurement, automates vendor risk checks, and integrates seamlessly with your existing infrastructure, giving you the control and visibility you need to stay ahead. 

Ready to embrace the future of fintech? Schedule a demo and see how Zip can revolutionize your procurement operations. 

Methodology

The survey of 213 U.S. fintech executives and directors was conducted via Centiment Audience for Zip between March 4 and March 15, 2025. Data is unweighted and the margin of error is approximately +/-3% for the overall sample with a 95% confidence level. 

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Written By
Brooks Rocco
Content Marketing Manager at Zip
Brooks Rocco is a content marketing manager at Zip, the world's leading procurement orchestration platform. With expertise in crafting data-driven strategies and a passion for elevating procurement, Brooks creates insightful, actionable content for finance and procurement leaders. When he's not shaping Zip's thought leadership, Brooks enjoys exploring innovative ways to connect brands with their audiences.

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