As regulatory compliance pressures mount and cyber threats surge, financial services companies face a pivotal moment to secure their operations and maintain trust. Dubbed the “Year of Regulatory Shift,”
1 2025 is poised to see growing cybersecurity vulnerabilities, stringent regulatory demands, and the growing influence of artificial intelligence (AI). Regulators are intensifying their focus on risk management and accountability, prioritizing issues including oversight-focused adherence to cybersecurity standards, AI governance, and financial crime prevention. To thrive in this highly-regulated environment, banking and financial institutions must adopt innovative strategies that ensure operational resilience, data protection, and regulatory adherence.
Navigating Compliance in 2025
Here are some critical challenges and emerging trends defining the financial sector’s regulatory landscape:
- Cybersecurity resilience takes center stage
The financial sector faces increasingly sophisticated challenges, including ransomware, data poisoning, and insider attacks, leaving institutions more vulnerable to breaches than ever. With expanded digital attack surfaces from cloud applications and AI-driven systems, regulators demand greater accountability for securing technological ecosystems.
What to expect in 2025:
- Enhanced focus on incident reporting, cloud data security, and third-party risk management
- Increased implementation of state-level cybersecurity regulations
- Stricter accountability for vulnerabilities in interconnected systems
- Responsible AI governance becomes a mandate
In a recent survey, eight in ten cybersecurity professionals believe that AI will impact their job in the near future.2 AI presents immense opportunities for innovation, but also significant legal concerns. Governments and regulatory bodies are taking a “whole-of-government” approach to prioritizing transparency and ethical use of AI3, emphasizing accountability for risks such as bias, explainability, and security vulnerabilities.
What to expect in 2025:
- Federal and state-level regulations requiring risk mitigation in AI models
- Continued focus on ethical AI standards, guided by frameworks such as the National Institute of Standards and Technology (NIST) AI Risk Management Framework4
- Global influences, such as the EU AI Act5, shaping governance expectations
- Data protection and privacy regulations intensify
With the rise of digital ecosystems, protecting customer, and user data is more critical than ever. Regulatory bodies are closely scrutinizing areas including cross-border data flows, third-party integrations, and privacy practices to ensure compliance.
What to expect in 2025:
- Growing alignment between federal and state regulations, driven by consumer protection concerns
- Increased penalties for non-compliance with privacy laws, including California’s CCPA6
- Heightened scrutiny on how institutions secure sensitive financial data
- Increased strain on security operations centers
A critical shortage of skilled cybersecurity professionals, combined with an overwhelming volume of data, is stretching Security Operations Centers (SOCs) to their limits. Many institutions are struggling to manage, detect, and respond to threats effectively.7
What to expect in 2025:
- Greater reliance on automation in threat detection and response (TDR)
- Strategic partnerships with service providers to supplement internal cybersecurity teams
- Improved data management practices to reduce alert fatigue and streamline operations
Turning Compliance Into a Competitive Edge
Evolving regulations and escalating cybersecurity risks demand a proactive, strategic approach to regulatory adherence and security. For banking and financial organizations, compliance isn’t just a requirement—it’s an opportunity to differentiate and thrive. By simplifying compliance management, mitigating risks, and ensuring operational continuity, organizations can meet legal demands while building trust with customers and partners.
An effective compliance strategy includes:
- Ongoing management and guidance to stay ahead of evolving regulatory requirements
- Robust security controls to protect sensitive data and infrastructure from emerging threats
- Streamlined reporting that demonstrates regulatory adherence and reinforces credibility
- Centralized processes to reduce inefficiencies and drive operational excellence
Ntirety’s Compliance-as-a-Service (CaaS) goes beyond checkbox compliance to deliver a tailored, comprehensive solution that empowers your organization to lead in a complex and highly regulated industry. With expertise in risk reduction and security enhancement, Ntirety transforms compliance into a powerful business advantage, helping you build resilience, credibility, and long-term success.
Compliance as a Service
1. KPMG, 2025: The Year of Regulatory Shift, 2024.
2. ISC2, The Real-World Impact of AI on Cybersecurity Professionals, February 2024.
3. KPMG, 2025: The Year of the Regulatory Shift, 2024.
4. NIST, AI Risk Management Framework, July 2024.
5. European Union, EU AI Act: first regulation on artificial intelligence, Updated June 2024.
6. California, California Consumer Privacy Act (CCPA), Updated March 2024.
7. KPMG, Cybersecurity considerations 2024: Financial services sector. June 2024.
