With 2024 behind us, we now turn our attention to the risks that 2025 brings for financial institutions. In 2025, the industry will face a shifting regulatory environment, increased geopolitical tensions, rapid technological adoption and potential consolidation. While this backdrop may seem familiar, the dynamic landscape of 2025 will present a unique mix of optimism and challenges. In this article, we explore the top five risks facing financial institutions in 2025.
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Regulatory shift: Navigating deregulation in the United States
2025 began with a new U.S. administration and news that the Canadian Prime Minister would resign. With Republicans controlling the presidency and both houses of Congress, significant changes in leadership, legislation and regulation are expected, leading some to call 2025 the Year of the Regulatory Shift. The administration’s aggressive deregulation campaign, including the “10-for-1 Order” to get rid of ten existing regulations for every new one is part of a broader agenda involving downsizing and restructuring agencies.
Benefits of reduced regulation
- More favorable business climate: Reduced compliance…
