The CEE Fintech Revolution: Trends Shaping the Future of Finance

The global financial landscape is undergoing a radical shift, with the Central and Eastern European (CEE) region leading the charge. As of Q1 2025, the CEE startup ecosystem is valued at over €243 billion, according to Dealroom, with Fintech consistently ranking among the top three most-funded sectors. In 2024 alone, CEE companies raised over €2.3 billion in venture capital, showcasing a dynamic environment where nimble startups are challenging incumbents and transforming local expertise into global products. This rapid growth, fueled by a highly skilled tech talent pool, positions CEE as a critical barometer for the future of finance.

Here are the 10 most relevant Fintech trends set to define the market in 2025, spotlighting the innovative CEE companies driving them forward.

1. Embedded Finance and Banking-as-a-Service (BaaS)

Embedded finance is arguably the biggest game-changer in the financial sector. Instead of relying on separate banking apps, financial services are now seamlessly integrated into the everyday applications we use. Imagine booking a train ticket and being offered insurance right there, or an e-commerce platform providing “buy now, pay later” options without redirecting you elsewhere.

BaaS serves as the backbone of this trend, equipping companies with the tools to become financial providers. A prime example is Flowpay in Prague, which goes beyond traditional credit scores by utilizing AI to analyze real-time operational data, such as sales and inventory. This allows them to offer instant, data-driven revenue-based financing directly within their platform.

2. AI and Hyper-Personalization

Artificial Intelligence is evolving beyond basic chatbots, ushering in a new era of hyper-personalization in financial services. Imagine a banking app that analyzes your spending habits and offers proactive advice on saving or detects potential fraud in real-time based on your unique behavior. This transformation makes financial management not just easier but also more intuitive.

Nethone from Poland exemplifies this trend. The company employs machine learning to understand and screen online users, analyzing behavior patterns like keystrokes and mouse movements to gauge user intent, thereby enhancing security and personalization.

3. Sustainable and ESG-Focused Fintech

A growing concern for the impact of financial decisions has led to the rise of sustainable and ESG-focused fintech solutions. Consumers now have access to apps that track their carbon footprint with every purchase or platforms that facilitate investments in companies with strong Environmental, Social, and Governance (ESG) scores. This trend empowers individuals to align their financial choices with their values, making a tangible impact on the world.

4. The Growth of Open Banking

Open banking is revolutionizing consumer control over financial data. This trend is expanding into Open Finance, allowing users to securely share their data with third-party applications for a wider array of services. This shift is crucial for fostering competition, enabling innovative startups to create products that rival traditional banks, and ultimately making the financial ecosystem more interconnected and consumer-centric.

5. RegTech for Compliance

With rapid innovation comes the necessity for new regulations, and this is where Regulatory Technology (RegTech) steps in. These smart solutions leverage AI and automation to help financial companies remain compliant. Processes like Anti-Money Laundering (AML) and Know Your Customer (KYC) checks are being automated, enhancing accuracy and streamlining user experiences.

CEE-based RegTech firms are thriving in this environment, with companies like Fonoa, founded in Croatia, specializing in global tax automation. Fonoa enables digital businesses to instantly calculate and report indirect taxes across over 190 jurisdictions, simplifying compliance.

6. The Evolution of Decentralized Finance (DeFi)

Decentralized Finance (DeFi) is maturing from a niche concept into a mainstream financial solution. By combining the transparency of blockchain with the security and regulatory compliance of traditional finance, DeFi is paving the way for innovations like regulated asset tokenization. Major players, including J.P. Morgan with its Onyx platform, are exploring how permissioned Distributed Ledger Technology (DLT) can reshape peer-to-peer lending and asset management.

7. The Security Shift to Biometrics

The era of remembering multiple passwords is fading as biometric authentication becomes more sophisticated. This technology goes beyond simple fingerprints or facial recognition; it analyzes various data points, such as typing patterns and swiping behaviors, to verify identity. PayByFace, a Romanian startup, has developed a facial recognition payment system that allows customers to pay using just their face, partnering with major banks to implement this innovative technology.

8. Central Bank Digital Currencies (CBDCs)

Central banks worldwide, including the European Central Bank with its digital euro initiative, are exploring the creation of Central Bank Digital Currencies (CBDCs). Unlike cryptocurrencies, CBDCs are controlled by central authorities, but they have the potential to revolutionize payment systems, making them more efficient and secure.

9. A Surge in WealthTech

As more individuals, particularly younger generations, seek to invest, traditional methods can seem daunting. WealthTech aims to democratize investing, with a rise in robo-advisors and user-friendly apps that allow users to start investing with minimal capital. Greek company Wealthyhood is a notable example, simplifying the process of entering the crypto investment space for newcomers.

10. Making Finance Accessible for Everyone

This trend focuses on ensuring that financial services are available to all, regardless of income level or geographic location. Traditional banks often exclude individuals who may not meet minimum balance requirements or live too far from a branch.

Fintech companies are leveraging mobile-first solutions to break down these barriers. They offer low-cost or no-fee accounts, digital wallets for easy transactions, and micro-lending options that don’t rely on traditional credit histories. By utilizing technology to reach underserved populations, fintech is empowering individuals to manage their finances better, start businesses, and improve their overall quality of life. This movement is crucial for fostering a fairer and more equitable society.