TOP 5 FINTECH TRENDS BACKED BY AUGMENTUM FINTECH – PART 1
Fintech has been at the forefront of innovation for over a decade, massively reshaping global finance at an unprecedented scale. From mobile banking and digital payments to blockchain-enabled transactions and AI powered finance and lending, fintech has fundamentally changed how people and businesses conduct finance. And, the growth journey and innovation curve isn’t slowing down anytime soon.
One way to better understand the direction fintech is heading is to view it through the lens of investors. In this two-part series, we explore the top trends shaping global commerce—through the eyes of Augmentum Fintech, Europe’s leading publicly listed fintech-focused fund. By backing some of the most promising companies in the space, Augmentum offers a unique window into the innovations driving the future of finance.
A BCG and QED investors report predicts fintech revenues to reach $1.5T by 2030, highlighting the sector’s massive growth potential. No wonder, then, that fintech remains among the VC (venture capital) investment favourites. In 2024 alone, the global fintech investment stood at $43.5B with the US and UK leading the way.
| Deal Count | Capital Raised ($bn) | |
| United States | 2633 | 22.0 |
| United Kingdom | 546 | 3.6 |
| India | 274 | 2.2 |
| Singapore | 311 | 1.4 |
| Brazil | 122 | 1.4 |
| China | 94 | 1.15 |
| Canada | 162 | 1.14 |
| France | 149 | 1.10 |
| Phillippines | 19 | 1.0 |
| Germany | 149 | 0.9 |
Top 10 Global Markets for Fintech Investment (2024)
So, what groundbreaking trends and innovations is Augmentum Fintech betting on as we step into 2025. Part 1 of this two part series focuses on AI powered transformation of fintech while part 2 explores how themse such as embedded finance, regtech, and cross-border payments are redefining the future of global transactions
TOP 5 FINTECH TRENDS BACKED BY AUGMENTUM
1) AI (ML) powered financial services
AI is no longer a distant vision for financial services. It has moved beyond theory and is actively reshaping the fintech sector. The global AI in Fintech market is projected to grow at a CAGR of 22.5% (2022-2031), reaching $61.30 billion by 2031, highlighting its increasing adoption.
In addition to massively improving existing financial use cases, AI’s transformative power lies in its ability to introduce novel use cases and operating models in financial services.
Some broad key areas where AI is making an impact include:
A) Hyper-Personalization and AI-driven Customer Support
Conversational AI and NLP-powered chatbots provide real-time financial assistance, resolving queries, guiding transactions, and improving customer experience. AI also personalizes financial products, tailoring offerings such as loans, insurance, and rewards based on user behavior.
B) Personalized Investment and Robo Advisors
AI-powered robo-advisors provide personalized investment strategies by analyzing market trends, risk profiles, and user behavior. These platforms help retail and institutional investors make data-driven and automated investment decisions.
C) Fraud Detection and Prevention
AI-driven fraud detection systems analyze vast transaction data in real time, identifying anomalies and preventing fraud before it occurs. Behavioral analytics and machine learning models enhance security by flagging suspicious activities.
D) AI-Driven Credit Scoring
Traditional credit scoring relies on historical data, but AI models assess alternative data sources like transaction patterns and digital footprints. This enables more accurate and inclusive credit decisions, especially for underbanked populations.
The following visual summarizes the major categories transforming the space:
Key areas of AI application in Fintech
Augmentum’s Bet
Technology-first firms are uniquely positioned to bring emerging technologies such as AI in the market.
Augmentum Fintech’s strategic investments in AI-driven fintech firms reinforce AI (and ML) as a core trend driving fintech innovation.
One such investment is Augmentum’s investment in the UK based insurtech firm Artificial (led £8 million Series A+ with a £0.8 million secondary share purchase). This investment underscores Augmentum’s broader conviction in AI-driven financial infrastructure automation—a category focused on transforming the foundational systems and workflows that power modern finance.
TAKEAWAY
These are just some of the initial AI use cases transforming fintech today. As AI continues to advance, we can expect a wave of novel applications and can safely say that the future of AI in fintech is just getting started.
3) Fraud Prevention and Identity Verification
Fraud detection and prevention is rapidly becoming a mainstream topic in the Fintech industry. While the emergence of generative AI has enabled the introduction of novel use cases, it has equipped fraudsters with potent and sophisticated ways to commit fraud. In fact, Deloitte’s Center for Financial Services predicts gen AI enabled fraud losses to reach US$40 billion by 2027 ( in the US)
Gen AI Fraud
As fraud tactics evolve, fintech companies must adopt stronger compliance frameworks, real-time risk monitoring, and identity verification solutions to prevent financial crime and meet regulatory requirements.
Deepfake videos, identity fraud, and AI-generated synthetic identities and fake documents are enabling fraudsters to commit fraud at scale and bypass traditional identity verification.
Fortunately fraud prevention through the use of AI/ML is evolving as well. A lot of identity verification players, traditionally offering standard KYB and KYC checks, are expanding their suite to offer fraud detection and prevention solutions.Firms are leveraging behavioral analytics, real time transaction monitoring and machine learning models to prevent fraud. By tracking transaction behaviour, typing patterns, and interactions, firms can detect anomalies and proactively prevent fraud.
Real World Example
A notable example is a 2024 incident involving British engineering firm Arup. The company fell victim to a sophisticated deepfake scam where criminals used AI-generated videos to impersonate senior executives. This deception led an employee to transfer approximately $25 million to fraudulent accounts.
This case underscores the critical importance of implementing advanced fraud detection and prevention measures in today’s digital landscape.
Augmentum’s Bet
Augmentum’s investment in AI-powered digital identity verification firm Onfido highlights the fund’s backing of this evolving space. Onfido has expanded beyond basic identity checks to offer a suite of fraud reduction offerings.
This aligns with Augmentum’s broader thesis around AI-enhanced digital trust and risk infrastructure—a category that is becoming foundational to the future of fintech
Takeaway
Augmentum’s investment in Onfido signals a belief that in the age of generative AI, trust must be embedded into the very infrastructure of fintech.
Fraud prevention stands out among AI-driven use cases because of its direct impact on financial security. Unlike some speculative AI use cases, fraud prevention delivers tangible value and the cost savings.
Together the above two trends highlight the AI driven depth of financial transformation.
As AI continues to reshape the core infrastructure of financial services, it’s clear that we’re only seeing the beginning of its impact. In Part 2, we explore how Augmentum is also backing the next wave of transformation—through embedded finance, regtech, and the future of global payments.
