S P E C I A L I S T I N S I G H T
S P E C I A L I S T I N S I G H T
In this exclusive interview , Jeroen Hölscher , Global Head of Payment Services at Capgemini , delves into the transformative trends shaping financial services . From open finance personalisation to instant payments , decentralised identity and remittance affordability , he explores the challenges , innovations and opportunities defining the FinTech landscape by 2025 .
Open finance is expanding to include a full financial footprint . How do you see this impacting personalisation in financial services and consumer behaviour in 2025 ?
Open finance expands the horizon of open banking beyond payments and account data , encompassing a 360-degree financial footprint of consumers , including insurance , investments and retirement plans . By integrating data from multiple sources through secure APIs , we ’ ll witness a rising wave of firms able to drive deeper personalisation . This allows institutions to tailor products and services to unique consumer needs .
Regulatory frameworks like Section 1033 of the Dodd- Frank Act in the US and the European PSD3 and FiDA frameworks are evolving to standardise APIs and promote secure data sharing . However , Capgemini ’ s World Payments Report 2025 highlights that 62 % of banks are unprepared for this shift , emphasising the need for infrastructure investments .
In 2025 , open finance will foster a more connected and inclusive financial ecosystem , empowering consumers with greater control over their data and enabling banks to deliver innovative , personalised solutions .
With instant payments expected to grow significantly , what challenges do banks and FinTechs face to meet this demand , especially with digital wallets becoming dominant ?
The rise of instant payments and the growing dominance of digital wallets are reshaping how people transact . Our data estimates that instant payments will surge from 16 % of global payment transactions in 2023 to 22 % by 2028 . The rise of instant payments and digital wallets presents significant challenges for banks and FinTechs . Traditional banking systems are designed for batch processing . They require extensive technological upgrades to support realtime , 24 / 7 transactions . Integrating these systems with digital wallets demands seamless interoperability to ensure smooth user experiences .
Fraud prevention is another critical element as instant payments increase the risk of fraud , requiring advanced AI and AML measures while maintaining speed and convenience . Regulatory compliance , such as adhering to PSD3 , adds another layer of complexity , necessitating alignment with evolving rules to avoid disruptions .
Low transaction limits in some regions also hinder adoption , emphasising the need for regulators to raise these caps , as seen in countries like the Netherlands , where instant payments thrive .
To meet growing customer expectations for speed , security and personalisation , financial institutions must prioritise system reliability and user experience . Strategic adoption of instant payment solutions can also unlock cost savings and enhance corporate treasury capabilities .
What role do you see FinTechs and regulators playing in reducing remittance costs to below 3 % by 2030 , and how will innovations help improve accessibility and affordability ?
Global remittance flows reached US $ 857 billion in 2023 , but remain costly , with banks charging up to 12.66 % per transaction . Developing countries , which receive over 75 % of remittances , face fees as high as 10 – 15 %. Reducing remittance costs below 3 % by 2030 will require both FinTechs and regulators to play pivotal roles .
We are noticing the FinTech community address this issue by bringing cheaper products to market . They can do this through efficient digital solutions like mobile wallets , enabling real-time , low-cost transfers . These innovations are making traditional remittance methods less competitive by improving speed and affordability . In India , we are seeing Unified Payments Interface ( UPI ) building corridors from and to India to create cheaper remittance solutions . www . intelligentfin . tech
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