As the financial services sector braces for 2025, several pivotal developments are set to reshape the global landscape. From regulatory shifts to payment innovations and climate finance standards, financial institutions and stakeholders worldwide are preparing for significant changes.
According to the “Financial services outlook 2025” report tagged “The great easing” by the Economic Intelligence Unit(EIU), “Falling interest rates will eat into bank margins, but bond markets will rally”
The report further emphasised that policy rate cuts will ease borrowing, but tighter bank margins may reduce dividends and delay Basel III. Emerging market bond inflows and US equity growth will strengthen markets, with new listings rising in India, Singapore, and Hong Kong. Reinsurance risks will increase amid extreme weather and geopolitical tensions.
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Here are 4 things to watch globally in financial services in 2025 according to EIU.
1. EU Clearing Deadline: Adjustments for UK clearing houses post-Brexit
The EU’s clearing deadline in June 2025 signals a critical shift for UK-based derivatives clearing houses. The post-Brexit extension granted to UK operators, including the London Stock Exchange’s LCH unit, is set to expire. This deadline will prevent UK clearing houses from processing euro-denominated interest-rate derivatives—a tool extensively used by EU-based companies to safeguard against fluctuating borrowing costs.
This move forms part of the EU’s broader aim to reduce dependence on clearing houses outside the union, which currently account for over 70% of such transactions. The transition intends to support and increase volumes for EU-based clearing entities, encouraging local financial resilience and reducing reliance on external markets.
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2. Real-Time Payments: The rapid growth of digital wallets
2025 will witness digital wallets continuing as the fastest-growing real-time payment method, while cash usage declines further. Globally, account-to-account payments will gain prominence, particularly in India and Brazil, where lower transaction fees fuel their adoption. Meanwhile, Europe’s cross-border payment solution, Wero, launched in 2024, shows promising expansion across the continent.
The United States FedNow platform, also introduced recently, is expected to gain traction, allowing US-based consumers and businesses faster payment processing. Central bank digital currencies (CBDCs) will also begin to reshape international transactions, as countries like Russia and Brazil prepare to conduct their first cross-border payments with digital currencies. Brazil, specifically, will launch Drex, the digital version of its national currency, the Real, solidifying its approach to modern financial systems.
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3. Basel Endgame: The final phase of Basel III reforms
The Basel Committee on Banking Supervision (BCBS) has earmarked 2025 for the final adoption of Basel III reforms, also known as the “Basel endgame.” These reforms mark a substantial restructuring of banking regulations, with a focus on increasing minimum capital requirements and implementing robust risk management frameworks.
While these regulatory changes are expected to fortify global financial systems, resistance from the industry, particularly in the United States, has led to delays. This has prompted a ripple effect in other BCBS jurisdictions, where similar setbacks might defer complete implementation. Nonetheless, the BCBS remains committed to reinforcing global banking standards to better withstand economic shocks.
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4. Climate Finance Guidelines: Increasing targets and disclosure requirements
In 2025, climate finance remains a priority for global financial regulators and institutions. The World Bank plans to increase its climate finance share to 45% of its total funding, a target that aligns with growing global commitments to address climate challenges. The European Central Bank (ECB) will continue implementing its 2024-25 climate plan, with a focus on assessing banks’ integration of climate risks into their financial frameworks.
New regulatory requirements will come into force in India, mandating large financial services companies to adhere to climate risk disclosure obligations for the 2025-26 financial year. These guidelines underscore a wider movement towards transparency and accountability in financial services, as organisations are encouraged to adopt sustainable practices and climate-conscious decision-making.
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