As the financial world approaches 2025, shifts in banking and payments are unfolding.
In B2B, however, these advances and innovations are running into a speed bump: the prevalence of paper checks.
“There’s a relatively unacceptably high level of check usage here in the United States,” Seamus Smith, executive vice president and group president at FIS, said during a discussion for “PYMNTS Outlook 2025: Navigating the Future of Banking and Payments,” emphasizing the risks of fraud and inefficiency inherent to checks.
Emerging technologies like open banking and real-time account-to-account payments present viable alternatives, Smith said, yet the industry must do more to articulate their advantages.
Efforts to modernize B2B payments are having a downstream impact across the entire business operating landscape, impacting finance teams and treasury leaders.
Businesses may get stuck waiting on checks and reconciliations while competitors and peers move forward with data-driven strategies grounded in digital B2B payments.
Smith predicted that by 2025, businesses will more rapidly adopt electronic payment mechanisms, bolstered by innovations that integrate data flows with financial transactions.
“Incorporating data into the money flow will provide significant improvements for businesses seeking to reduce their dependence on checks,” he said.
The evolving role of the chief financial officer emerged as another key theme to watch for in the year ahead. Historically focused on retrospective financial reporting, today’s CFOs are transitioning to a forward-looking, strategic role.
“The trajectory is moving from hindsight to foresight,” Smith said, adding that technology is reshaping the traditional path to the CFO chair. Increasingly, CFOs are coming from diverse backgrounds in technology and strategy, reflecting the growing importance of innovation in financial leadership.
Businesses embracing advanced software and payment applications will gain a competitive edge, he said.
“Organizations that are early adopters and larger-scale consumers of new technology will accelerate ahead,” he said, underscoring the role of technology in enabling value creation and strategic decision-making.
For treasurers, real-time financial visibility is becoming paramount, especially in the high-interest-rate environment. By 2025, treasurers who use real-time data and API integrations will be better equipped to navigate market complexities and make informed decisions.
Smith pointed to the role of APIs in simplifying complex ecosystems and enabling the integration of data, money flows and information.
“APIs are part of the simplicity remedy,” he said. “What do APIs do? They fundamentally glue ecosystems together more efficiently and effectively. And in a large organization, particularly, there can be a lot of complexities.”
On the automation front, Smith said 2025 will witness even greater momentum. Artificial intelligence will have a transformative impact on cash application processes within FIS’ GETPAID software.
These tools excel at ingesting unstructured data, streamlining payment reconciliation and improving cash flow.
“These advancements lead to working capital efficiency and cash flow improvements,” Smith said, predicting widespread adoption of AI-driven automation in data-intensive areas of financial operations.
Fraud detection is another domain poised for innovation. Smith predicted a “mega-merger” of datasets, driven by AI, to create comprehensive fraud profiles. This approach will enable businesses to anticipate and preempt fraudulent activities. Highlighting Visa’s December acquisition of Featurespace, Smith said major players are investing in advanced tools to stay ahead in the “war on fraud.”
By integrating AI with diverse data sources, businesses can achieve a three-dimensional view of fraud, identifying criminals and vulnerabilities before they materialize. This proactive approach represents an evolution in fraud defense strategies.
Looking ahead to 2025 and beyond, one thing is clear: The pace of technological adoption in banking and payments will only accelerate. Businesses that embrace innovation — whether through digital payment methods, AI-driven automation or real-time data integration — will not only navigate but thrive in the evolving financial landscape of 2025, Smith said.
“I think the pace of innovation, change and disruption will only continue,” he said.
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