The financial services industry is moving away from the static, manual processes of the past towards a dynamic, digital-first future. "Financial Technology" has evolved into a dominant force that dictates how capital is managed, tracked, and audited globally. In 2024, the global market for FinTech innovations was valued at approximately $340.10 billion, with projections suggesting a surge to over $1.1 trillion by 2032. This shift represents a fundamental re-engineering of the financial value chain that balances the need for rapid innovation with the stringent demands of regulatory compliance.
the technological drivers of the FinTech revolution
At the heart of this disruption lies a suite of advanced technologies designed to enhance transparency and operational speed. Artificial Intelligence (AI) and Machine Learning (ML) are capable of scanning millions of transactions in a fraction of the time human operators would need.
This digital infrastructure allows for:
- Real-time data accessibility: Accessing financial insights anytime, anywhere via secure mobile and web platforms.
- Decentralised Finance (DeFi): Leveraging smart contracts to perform peer-to-peer lending and payments without traditional intermediaries.
- High-speed data gathering: Accelerating Know Your Customer (KYC) and Anti-Money Laundering (AML) checks through automated verification.
hyper-personalisation through embedded finance
In 2025, one of the most dominant FinTech innovations has been the seamless integration of financial services into non-financial platforms. Facilitated by robust API orchestration and open banking frameworks, this allows consumers to manage payments, lending, and insurance directly within the applications they use in their daily lives.
For the accounting function, this creates a 'modular' financial ecosystem where data is captured at the point of origin, significantly reducing the lag between a transaction and its reflection in the general ledger.
agentic AI: the shift from generative to autonomous systems
While Generative AI boomed in the last couple of years, 2025 was defined by 'Agentic AI'. This evolution has a profound impact on accounting, as AI agents now handle autonomous credit underwriting, real-time fraud detection, and multi-entity reconciliations without human intervention.
Professionals who leverage these AI-driven strategies report saving an average of 240 hours annually, translating to approximately $19,000 in annual value per professional.
continuous close via automated accounting systems
The traditional month-end close is rapidly becoming an anachronism. Modern automated accounting systems leverage Robotic Process Automation (RPA) and machine learning to enable a 'continuous close' model. By automating rule-based, repetitive tasks — such as data entry and report synchronisation — RPA eliminates 100% of clerical errors.
Firms utilising these workflows in 2025 have reported reducing administrative time for staff from over five hours per week to under one hour for more than 75% of their workforce.
Distributed Ledger Technology (DLT) and triple-entry accounting
Blockchain has moved beyond the hype cycle of cryptocurrencies into the practical realm of institutional finance. By utilising a 'shared digital ledger,' Blockchain facilitates 'Triple-Entry Accounting'. In this model, every transaction is recorded as a cryptographically sealed receipt that is shared between parties, making audits instantaneous and precluding fraud. This disintermediation reduces the need for traditional central authorities and clearinghouses, speeding up settlement times for complex international trade finance.
RegTech and the strategic pivot to DORA compliance
As FinTech enters the mainstream, regulatory scrutiny has reached an inflection point. The Digital Operational Resilience Act (DORA), effective from January 2025 in the EU, represents a new global benchmark for financial cybersecurity. Regulatory Technology (RegTech) is now a foundational tenet for firms, using big data and cloud computing to automate AML (Anti-Money Laundering) and KYC (Know Your Customer) checks.
However, a 'security paradox' still remains, with 85% of financial organisations expecting a major cybersecurity incident to disrupt their business within the next 24 months.
the democratisation of high-performance risk modelling
Advanced analytics and cloud-based platforms have democratised access to sophisticated investment tools. Retail investors and small enterprises can now access professional-grade risk assessment and portfolio management through robo-advisors and AI-driven wealth management platforms. This shift forces accounting professionals to evolve from 'data gatekeepers' into 'strategic advisors,' providing nuanced insights into capital allocation and liquidity management that were once the sole province of institutional 'whales'.
real-time auditing and the audit-readiness paradigm
The rise of continuous monitoring tools has transformed the nature of external and internal audits. Instead of periodic, sampling-based audits, automated accounting systems allow for 100% data coverage in real-time. This means discrepancies are flagged the moment they occur, ensuring that an organisation's financial health is verifiable at any given second. This level of transparency is essential for modern enterprises navigating volatile markets where data accuracy is the primary currency of investor confidence.
Looking toward the immediate future, the financial sector is preparing for the advent of Central Bank Digital Currencies (CBDCs) and the threat of quantum computing to traditional encryption. Financial institutions are already beginning to 're-engineer' their cryptographic standards to ensure future-readiness against quantum threats.
how can Infosys BPM help you leverage FinTech innovations?
Infosys BPM empowers organisations by embedding automated accounting systems into the fabric of the finance function to deliver autonomous operations and real-time business orchestration. Our approach is built upon a three-tiered model for continuous accounting and pervasive compliance, utilising "Agentic AI" through the Infosys Topaz-powered Accounts Payable on Cloud (APOC) solution to transition from human-driven to autonomous AI-first workflows.
frequently asked questions:
- Which emerging technologies are materially changing finance & accounting execution (not just “digitizing” it)?
- How should CFOs govern “Agentic AI” in accounting to protect controllership and audit readiness?
- What is the executive case for continuous close, and what must be true for it to work?
- How does DORA change the compliance conversation for finance leaders and service providers from 2025 onward?<
The draft highlights Agentic AI for autonomous reconciliations/fraud detection, RPA + ML for continuous close, and blockchain-enabled triple-entry accounting for higher integrity and auditability.
The strategic shift is from periodic, manual processing to always-on execution where controls and assurance can be closer to real time.
Treat Agentic AI as a controlled operating layer: define where autonomy is permitted, require traceable decision logs, and enforce segregation of duties across data, models, and approvals.
This aligns with the draft’s emphasis that automation is reshaping accounting work while raising the bar for transparency and risk management.
Continuous close becomes viable when rule-based work is automated and financial data is captured closer to the point of origin, reducing lag and enabling near-real-time insight.
The draft frames this as a shift away from month-end dependency through RPA/ML-driven workflows that reduce manual effort and improve data consistency.
DORA applies from 17 January 2025 and is intended to strengthen ICT risk management and resilience expectations across financial entities, including third‑party risk oversight.
The draft positions this as a driver for RegTech adoption and a higher standard for cybersecurity governance as digital finance scales.
