Murray Cambell, Product Manager, AutoRek
The complexity and volume of data in the financial services industry is growing at an unprecedented rate, prompting businesses to seek innovative resource-saving solutions to streamline operations and enhance data management. 2025 leads the pathway for what will be a transformative year, defined by the rapid evolution of technology and the reinvention of how businesses will operate.
This article will delve into the key trends taking precedence in 2025, including how AI and digital assets are collaboratively crafting the future of financial infrastructures, setting the stage for unprecedented innovation. In addition, we will also explore how Application Programming Interfaces (APIs) will enable greater connectivity.
Unparallel gains: AI and automation
A report conducted by the Bank of England and the Financial Conduct Authority revealed that 75% of firms (and 95% in the insurance sector) were already using AI in 2024, while 10% said that they were planning to adopt AI within the next three years. Although the industry might agree on the importance of using this technology, the full breadth of its applications is only now beginning to come to fruition.
For example, in back-office operations, the adoption of AI and automation remains largely untapped but offers immense opportunities. Many firms continue to rely on Excel spreadsheets and other technologies that struggle to keep up with the pace of change.
Due to the speed at which technology progresses, even solutions implemented five years ago can be considered “legacy tech” if they do not allow for interoperability between systems, let alone those implemented 20 years ago. By replacing these outdated tools with automated and AI tools, in 2025 firms can streamline claims and payments, improve fraud detection, and find ways to enhance customer support.
With more data than ever before, automated reconciliation will play a vital role. This technology will give valuable time back to skilled employees, letting them work on higher value tasks like investigating and resolving exceptions, while automated tools handle repetitive activities like data ingestion in the background.
While firms may enjoy unparalleled gains in efficiency through the use of AI and machine learning, there is also understandable concern about the potential risks posed by such technologies. Firms need to be clear on the associated risks and the extent to which they can rely on the output from AI solutions.
APIs: the path to achieving efficiency
APIs will continue to be the backbone of integrated financial services firms. By streamlining communication between platforms, APIs will create faster transactions, real-time data ingestion, and more responsive workflows.
Gone are the days of manually uploading file-based bank statements into reconciliation platforms. An API connection can pull data directly from the bank’s system, cutting out the need for file exports, transfers, and loading. When reconciling data from 10 or more sources, these out-of-the-box connections drastically reduce complexity and eliminate much of the manual labour that was once required.
APIs are driving operational efficiency across the board, allowing firms to gain a competitive edge. The scalability will allow businesses to easily manage the ever-growing volume and complexity of transactions and data. As firms across the industry prioritise building scalable and flexible tech stacks, APIs are a clear path toward achieving efficiency with real time insights.
Digital assets: a shift in reconciliation
With the price of Bitcoin surging to record highs in early December and other cryptocurrencies like DOGE expected to skyrocket in the new year, digital assets and tokenisation signal a massive shift in how businesses approach reconciliation and payments processing.
We’re also seeing growing experimentation with Central Bank Digital Currencies (CBDCs), which, unlike traditional cryptocurrencies, operate under centralised governance. Governments worldwide, including the UK, China, and India, are actively exploring CBDCs as part of their economic strategies. For now, this points to a near-future where physical and digital assets coexist, adding more complexity to manage rather than replacing traditional systems outright.
Reconciling the two worlds will become an essential focus for financial institutions, as managing this will be critical to success. The continued interplay between centralised and decentralised systems, and therefore digital and physical assets, will require firms to make long-term investments in automated reconciliation technology.
The importance of embracing change
With technologies like AI, automation and API integrations transforming the financial services industry, outdated processes and legacy systems are no longer viable for businesses wishing to remain competitive in 2025.
For long-term success, financial institutions must replace outdated systems with modern, integrated solutions. By prioritising adaptability and innovation, businesses can bridge the gap between operations and technology, and as a result unlock enormous potential.