Zoot was proud to join the fintech and banking community at Finovate Spring 2025, where the theme of modernization took center stage. Across panels, product demos, and hallway conversations one idea consistently emerged: meaningful progress doesn’t have to wait on complete digital transformation. From artificial intelligence to advanced automation, financial institutions are finding powerful ways to evolve incrementally, intelligently, and in partnership with the right technology and data providers.
Here are our key takeaways from the event, along with practical ways to take action.
Generative AI is Growing Up
Finovate Spring 2025 reinforced that AI isn’t theoretical anymore. From virtual agents that sound uncannily human to back-end tools boosting productivity, AI is being embedded in real workflows with real ROI. While we’re not at a point where AI can fully replace human decision making or interactions, the enhancements in efficiency are too valuable to ignore.
Financial institutions must evaluate where AI could automate high-volume, low-complexity tasks such as data entry or customer support behind the scenes, while considering where humans must be kept in the loop to retain control and preserve customer experiences. By testing AI capabilities in isolated workflows, organizations can begin to effectively measure performance and risk.
The Small Business Lending Opportunity is Real – and Ready
Small and mid-size businesses remain underserved by traditional banks, even as fintechs rush to fill the gap. These businesses are diverse in structure and credit profiles, which means underwriting often requires a nuanced, flexible approach. Traditional processes – lengthy document collection, rigid scoring models, and slow approvals simply don’t meet their needs. Several sessions highlighted the massive opportunity banks have to enhance and automate lending for this segment, especially when powered by reliable, real-time data.
Banks and credit unions must audit their current small business lending processes for bottlenecks, especially as it pertains to manual data entry and document collection. By exploring decisioning platforms that support fast, configurable workflows and integrating key data providers for third-party business verification, banks can achieve growth while supporting small businesses and providing better access to the capital they need to grow.
Modernization Doesn’t Have to Mean Full Replacement
Some of the best discussions at Finovate Spring 2025 centered around modernization, including a panel on modernizing banking technology featuring Zoot’s own Casey Ferguson alongside Vaibhav Pradhan of SS&C Technologies, Katie Quilligan of BankTech Ventures, and moderator JT Thykattil of Forrester Research. The shared message? That modernization doesn’t require tearing everything out and starting from scratch. In fact, most organizations are finding even better success by identifying specific pain points and modernizing over time, piece by piece. The old model, where digital transformation meant multi-year projects and complete platform overhauls, is giving way to a more pragmatic approach rooted in action.
“The real question is: what can you plug into and orchestrate today to create differentiated experiences and outcomes? Modularity, interoperability, and time-to-value are far more urgent than one-size-fits-all core replacement.”
Casey Ferguson
Director of Marketing
Look to identify areas where your team is working around outdated systems, as these could be your prime modernization targets. Next, look for solutions that can extend and augment your existing tech instead of replacing it outright. Prioritize changes that will deliver near-term business value, and continue your modernization efforts over time with a partner that is accustomed to these types of initiatives and will ensure that your systems will adapt and integrate together seamlessly.
Regulators Are Paying Attention & Engaging
A notable trend at Finovate Spring 2025 was the active participation of both federal and state regulators. Their presence signaled a deeper understanding of how fast the fintech space is evolving, and a willingness to engage with industry leaders in shaping fair, forward-thinking policies.
Financial institutions and fintechs must stay plugged in to evolving regulatory expectations and pressures around AI, data usage, and decision transparency. Prioritization of explainability and auditability in any decisioning flow or automation is also paramount. By partnering with vendors who are proactive about compliance and can easily adapt to changing regulations, banks and credit unions can ensure long-term, stable success regardless of the regulatory climate of the day.
Fraud Prevention Still Requires the Right Friction
The conversation around fraud at Finovate Spring was not new, but it was consistent. As digital fraud tactics evolve, institutions must find the balance between protective friction and seamless user experiences. The takeaway? Friction isn’t the enemy: poorly placed friction is.
Consumers are willing to tolerate – and often expect – certain moments of security verification, especially if it reassures them that their information and funds are protected. But when friction is introduced unnecessarily, or placed at the wrong point in the customer journey, it leads to abandonment, frustration, and operational inefficiencies. More than ever, success in fraud prevention depends on context-aware processes based on risk signals, resulting in intentional friction that is invisible to the right users.
Map your customer journey and identify where friction is helping. This could be in the case of identity verification, for example. Next, ask yourself where friction is hurting – such as in redundant manual reviews. Leverage advanced automation and data orchestration to bring in real-time insights and adjust your fraud rules strategically, while also enabling your team to test and refine strategies over time to adapt to emerging threats.
How Zoot Can Help
Innovation in financial services doesn’t happen in isolation. It takes alignment across data, technology, teams, and strategy. That’s where Zoot comes in. We’re not just a technology provider; we’re a long-term partner committed to helping financial institutions move faster, smarter, and more efficiently. Our solutions are built to integrate with your existing systems and scale with your growth, with modular architecture that enables you to adapt to whatever comes next.
No matter if you’re focused on smarter lending, stronger fraud defenses, efficiency gains, or ongoing modernization, Zoot delivers the flexibility and support to help you stay ahead of change, without disrupting what already works. Whether you need to upgrade a single workflow or overhaul your entire decisioning stack, let’s connect. We’ll meet you where you are and get you where you want to be.
