From deeper AI penetration to non-compromise compliance, the financial sector witnessed some transformative and momentary changes in 2025. Technology stopped being just an enabler and became the core driver
of strategy. Banks, NBFCs and fintech firms moved beyond experimenting with digital tools to being answerable for how they use them, especially AI, cloud and data.
AI moved from speed to decision-making
In 2025, artificial intelligence was no longer about automating back-office tasks. As Phani Tangirala, MD and CEO of Expleo Solutions Limited, points out, AI started shaping key decisions across risk, fraud, credit assessment and customer engagement. This shift forced banks to rethink their data foundations. Cloud adoption picked up pace, not just for scale, but also to ensure better data governance and responsible AI use.
At the same time, cybersecurity became a board-level topic. With threats growing more complex and regulators tightening norms, security, trust and governance turned into strategic priorities rather than IT concerns.
Enterprise AI went mainstream
According to Kalyan Kolachala, MD, SAIGroup, 2025 was the year when enterprise AI moved from pilot projects to real, production-scale impact in BFSI. Automation improved accuracy, cut costs and boosted productivity across operations.
Cloud-native platforms and open finance helped create smoother digital ecosystems, while blockchain strengthened transaction security amid rising UPI volumes. However, with higher automation came higher responsibility. Guardrails like knowledge graphs, context engineering and strong cybersecurity frameworks became essential. Upskilling employees in AI governance and data literacy also emerged as a key focus.
Trust replaced rewards as the loyalty driver
Digital maturity in BFSI entered a new phase in 2025. Pankaj Tripathi, Founder and CEO of Vernost, notes that customer loyalty is no longer driven by offers and rewards alone. Instead, seamless, safe and reliable digital experiences have become the real differentiator.
AI-led risk management, cloud infrastructure and data-backed decision-making helped firms handle rising regulatory complexity. But growing cyber risks also reminded the industry that innovation without strong governance is not sustainable. The winners in 2025 were those who balanced speed with trust.
Fintech compliance became non-negotiable
For fintechs, 2025 was a reality check. Sarika Shetty, Co-founder and CEO of RentenPe, says regulatory scrutiny, especially from the RBI, made it clear that compliance must be built into products from day one.
UPI became the default payment layer, embedded finance expanded rapidly, and tighter rules on lending and credit usage reshaped product design. AI usage matured, focusing more on fraud detection, document checks and compliance monitoring rather than growth hacks. Being a responsible fintech is no longer a differentiator. It is now the minimum expectation, she added.
Outlook for 2026: What lies ahead
Looking into 2026, a few themes are likely to dominate the financial sector:
- Responsible AI at scale with stronger governance, explainability and audit trails
- Compliance-first innovation shaping lending, payments and data usage
- Cybersecurity as a strategic priority across boards and management
- Embedded finance becoming more common at the point of need
- Trust emerging as the key factor for long-term customer relationships
