The Majority of Banks Are Confident in Meeting 2025 Compliance Deadline

While 96% of banks are either “very confident”  or “quite confident”  in their ability to meet compliance deadlines in 2025, many still face a complex regulatory environment marked by technology gaps and high compliance costs.

The latest Finextra survey revealed that technology is playing a key role in compliance, with 72% of banks using data analytics and 66% adopting AI to meet regulatory requirements.

The shift to data-driven decision-making is a positive development, especially as financial institutions aim to streamline their compliance processes, according to the report.

However, the survey revealed major gaps in the industry’s tech capabilities, with only 3% of respondents saying their current systems fully meet compliance needs.

Despite adopting advanced technologies, the report suggests many financial institutions still struggle to integrate and use them effectively to manage compliance risks.

The report also found that regulatory costs are becoming a major financial strain, with 36% of banks citing high compliance expenses as their top concern and 46% expecting to spend 8–10% of their EBITDA on compliance in 2025.

In addition to costs, 25% of respondents identified varying compliance requirements as a major challenge, highlighting the complexity of the regulatory environment. With regulatory frameworks in limbo, businesses are grappling with how best to align their operations with evolving standards.

Data security regulations, especially amid rising cybersecurity concerns, are having the greatest influence on financial decision-making across regions. According to the report, 26% of banks identified the Bank Data Security Act as the most impactful regulation for 2025, highlighting the growing importance of safeguarding financial data in the face of escalating cyber threats.