If you read the headlines, you’d think artificial intelligence is the only story in fintech. Banks and fintechs alike feel pressured to showcase their AI credentials, even when the use cases are thin. But let’s be honest: AI is not the real hurdle. The biggest
challenges in fintech innovation are far more structural and harder to solve.
1. The trap of trend-chasing
Yes, clients demand AI. Not always because their products require it, but because “everyone else has it”. Vendors are forced to adapt, integrating features that may add little value just to stay competitive. The real issue is not AI itself, but the distortion
it creates: resources are pulled into chasing fashion rather than solving genuine customer problems.
2. Corporate inertia
A lean fintech team can design and validate an MVP in weeks. But when that solution enters the world of large financial institutions, everything slows down. Committees, compliance, and risk aversion stretch timelines from months to years. It’s not technology
that holds innovation back. It’s decision-making inertia.
3. The paradox of flawless execution
Even when everything works – secure architecture, scalable systems, delightful user experience – success is not guaranteed. Markets can reject even the best products. Timing, adoption, and ecosystem fit often outweigh technical excellence. This reality can
be the most frustrating: building the right thing at the wrong time.
AI may dominate the conversation, but the true hurdles lie deeper: in organisational culture, in decision-making speed, in the unpredictable dynamics of adoption. These are the places where fintech innovation truly gets stuck.