Global Bank Review 2024
Adaptation: Change is the only constant
23 Jan 2025
Insight
Global
2m read
'Perpetual motion' aptly describes how the financial services community feels as we look at the continuously evolving geopolitical, technological and socio-economic landscape. In this, our annual Global FSR Outlook, we discuss how firms can effectively adapt to, and plan for, the complexities of this ever-changing environment.
In 2025, confronted with increasing demands and expectations, we expect regulators to continue to look for different and novel ways to use their existing powers and toolkits to supervise and enforce. This calls, in turn, for an agile response from the regulated community.
This innovative approach from regulators can be seen in relation to redress and remediation where we're seeing regulators pushing boundaries and taking proactive steps to facilitate redress, including in the fight against scams and fraud.
Changing demographics also call for a regulatory and legislative response, with a need for regulators and market participants to grapple with the potential conduct and prudential ramifications of an aging population.
Technological change continues to loom large in 2025 as we continue to adapt to digitalisation and technological integration in every aspect of life.
The cycle of continuously evolving financial regulation can feel like everything is happening all at once. In our Global FSR Outlook 2025, we look at how firms can effectively adapt to, and plan for, the complexities of this ever-changing environment.
Jenny Stainsby
Global Head – Financial Services Regulatory, London
As financial markets look to take advantage of technological developments (for instance to accelerate the speed of transactions, in relation to open finance and, of course, AI), regulators are seeking to balance their desire to support innovation and international competitiveness with the need to ensure there are appropriate guardrails.
Of course, the challenges and opportunities that accompany AI may pale into insignificance when faced with the advent of quantum computing.
For a while, it seemed regulators had put oversight of the broad church that is currently badged 'non-bank financial intermediation' in the 'too difficult' box, but there are signals that might change in 2025.
In the articles that follow, it's clear that, for regulators and the regulated, in 2025, there is no time to rest.
Chapters
- Global FSR Outlook 2025: Perpetual Motion
- The long and winding road of regulatory overhaul
- Adopt, adapt, improvise – The new regulatory approach?
- Many roads lead to Rome: Paths to redress and remediation
- The sanity of crowds – Can smart data initiatives transform consumer finances?
- Juggling water – How to regulate AI in financial services?
- Teetering on the brink of quantum utility – Not if, but when ...
- Rewiring the infrastucture – Making transactions faster
- A growing clamour – Can NBFI get out of the shadows?
- The anxiety of ageing – What changing demographics mean for financial services
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The contents of this publication are for reference purposes only and may not be current as at the date of accessing this publication. They do not constitute legal advice and should not be relied upon as such. Specific legal advice about your specific circumstances should always be sought separately before taking any action based on this publication.
© Herbert Smith Freehills 2025
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