It doesn’t seem that long ago that we celebrated the start of 2024, yet here we are in December, saying goodbye and ushering in 2025. As we welcome in the new year, several industry experts have shared their thoughts on the key areas to watch in the financial sector in 2025.
The evolution of technology
An ever-present topic of conversation, AI will undoubtably be just as prevalent in the new year. Hugh Scantlebury, CEO and Founder of Aqilla, believes that “2025 will be a defining year for AI.”
“More businesses will adopt the technology, but I can also see an equal amount of conscious disengagement,” he adds. “As 2025 progresses, it will become apparent which organisations have engaged with AI and are seeing the benefits.”
“This will be particularly noticeable among finance and accounting teams. Those who delay on AI are likely to spend more time on mundane, repetitive tasks. However, those who have adopted the technology will benefit from more streamlined, automated processes—and have time to focus on higher-value work that drives growth and productivity within their organisation.”
Russell Gammon, Chief Solutions Officer at Tax Systems, agrees that AI will become increasingly prevalent in the finance sector. He observes that: “Over the past year, the growth of AI hasn’t shown any signs of slowing down, and 2025 won’t be the year to halt the hype either. We may not witness full implementation of AI technology over the next year but 2025 will be the year of strategising, and figuring out where it will fit and benefit organisations. For tax professionals, the emergence of AI tools presents a fundamental shift in roles, especially for junior staff.”
Aside from AI, Andrea Novara, Engineering Lead | Banking & Payments Business Unit Leader at Agile Lab, believes the new year will see the rise of decentralisation. “In 2025 I expect we’ll see a greater shift towards the centralisation of ops and the decentralisation of apps,” Novara says.
He acknowledges that “centralisation of some business operations has many benefits, from enhanced security to better decision-making, but it must be managed effectively. With the sensitive nature of most financial data, it’s vital that regulatory standards are met at all times.”
However, for Novara, “excessive centralisation can have disadvantages, such as the formation of bottlenecks and a lack of access to resources. This is where decentralisation will come into its own over the next 12 months.” He concludes, “I anticipate that we’ll see a mix of centralisation and decentralisation, where evolution practices will be more and more decentralised to foster the autonomous development and growth of a rich data offering, while governance practices will be centralised to provide the indispensable guardrails to ensure high data quality standards and full regulatory compliance.”
The repercussions of geopolitical challenges
The last few years have seen wave after wave of challenges and change, resulting in several drastic shifts within the financial sector. Bruce Martin, CEO at Tax Systems, reflects on the difficulties posed by these events and looks towards those still to come. “One thing is certain, 2025 will be a year of change,” he says. “And whilst today’s business leaders are fairly adept at navigating uncertainty thanks to everything from Brexit and COVID, to geopolitical challenges causing worldwide economic instability, every change brings new challenges. 2025 will be no different – new governments in both the UK and US will have a big impact on businesses. With operational costs rising in the UK, leaders will be re-evaluating their strategies to ensure they continue to stimulate growth despite margins being squeezed.”
Rob Shaw, GM EMEA at Fluent Commerce agrees that global challenges will be a big factor next year. “In recent months, we’ve seen a significant amount of uncertainty across industries, driven by macroeconomic factors and political shifts,” he explains. “Historically, when faced with instability, businesses tend to delay major decisions or pause projects. However, we’re now beginning to see those projects that were on hold for the past 12 to 18 months start to move forward. The next 12 months will bring modest growth. While global political situations may still generate some tension, businesses will gradually accept the current environment and adapt accordingly.”
The impact of new regulations
The new year will witness significant regulatory developments within the finance industry, with long term regulations such as DORA coming into full effect. Dan Bridges, Technical Director – International at Cyware highlights the importance of compliance with these new regulations. “As we approach 2025, the financial services sector will continue to face an increasingly sophisticated cyber threat landscape, with politically and financially motivated cybercriminals targeting organisations for their valuable data. To stay ahead, financial institutions must enhance their cybersecurity strategies, gaining better visibility across their entire asset portfolio to detect potential threats before they escalate.
He adds that “a key solution will be the adoption of Threat Intelligence Platforms (TIPs). These platforms enable organisations to integrate and analyse threat data from multiple sources in real time, helping security teams to identify and act on emerging threats faster.”
Bridges concludes: “By embracing these technologies, financial firms can not only enhance their ability to combat evolving cyber threats but also ensure compliance with DORA, strengthening both their defences, business resiliency, and their position in a highly regulated environment.”
It is clear that, despite the ongoing challenges facing the industry, advancement and evolution will be the watchwords of 2025.
