The financial services sector is undergoing a phase of change in 2025 with AI evolution, regulatory evolution, and fintech advancements boosting the operational efficiency. Regulators like the FCA are giving top priority to growth and ease of compliance in order to help firms reduce costs without sacrificing on high standards. AI is revolutionizing fraud protection, compliance reporting, and customer personalization so that decision-making happens faster and risk management gets improved.
Competition from digital-first fintechs is pushing incumbent firms to innovate, through personalized offerings and self-serve solutions. Private equity investment in financial services is also increasing, with M&A activity set to rise further in the year.
With these adjustments, businesses now have new means of success with the application of technology and complying with evolving rules.
Source: EY Insights