The regulatory landscape is ever-changing in secured finance. Lenders must always be prepared by being proactive and leveraging proven technology such as Solifi Open Finance Platform enables lenders to react quickly.
As topics such as ESG and data privacy become more prevalent in the industry, being able to pivot quickly in 2025 is more important than ever. Reacting swiftly to unexpected changes is crucial.
Here are some of the top regulatory changes coming in 2025 and beyond.
United States
As a new president has been inaugurated, the regulatory landscape in the United States over the upcoming years is yet to be set in stone. But there are a number of regulatory changes that are already in the pipeline.
Basel III Endgame (B3E) is a significant change expected in US banking. In response to vulnerability in banks that was highlighted the global financial crisis in 2008, this set of standards was originally issued in 2010. These standards are now expected to be finalized in 2025 and will focus on the amount of capital that banks need against the credit, operational, and market riskiness of their business. Businesses should start preparing for these potential changes ahead to ensure they can continue to drive growth whilst being compliant.
Although not as prevalent as in the EU and UK, sustainability is becoming a substantial topic in the US. In March 2024, the SEC issued its final rule, requiring registrants to provide climate-related disclosures in their annual reports. These reports will be required in 2026 for the 2025 year, so organizations must start planning ahead to ensure they have the data and the facilities to ensure this.
European Union & United Kingdom
The Digital Operational Resilience Act (DORA) applied as of 17 January 2025, aiming to strengthen the IT security of businesses in the financial sector. As financial institutions become much more reliant on technology to operate, this heightens the risk of cyberattacks. Now, businesses must ensure their business is protected. This also affects any third-party providers that they use. Solifi Open Finance Platform meets AICPA standards for SOC 1 and SOC 2 Type II year-on-year, making it a trustworthy solution to meet these regulatory requirements.
Similarly to the EU, The UK’s operational resilience regulations will come into force by the end of March 2025. Ss part of this, businesses must identify their vulnerabilities and ensure they can mitigate any issues that arise. This also affects third-party providers.
Sustainability also remains a key topic in 2025 and the regulatory changes reflect that. The EU CSRD looks to make sustainability disclosures more transparent by standardizing them and in 2025 businesses will be expected to report on over 1,000 environmental, social and governance indicators. The UK is looking at their own framework, the Sustainability Disclosure Requirements, and the government aims to make the UK-endorsed ISSB standards available in the first quarter of 2025. Solifi ESG Portfolio Strategist can support lenders in meeting these standards, supporting reporting capabilities and tracking analytics.
Australia
In 2019, the Consumer Data Right (CDR) was introduced to give consumers the right to share data between service providers, enabling them to find a bank that best suited their needs. This meant that businesses had to be accredited to provide these services and had to comply with privacy safeguards to keep data protected. More recently, the government is proposing expanding this to non-bank lending. The CDR gives lenders access to more data about borrower’s behaviors, however it will also require strict compliance. Learn more about how to use data effectively in our previous blog.
Want to ensure your business is up-to-date with the latest regulations and always compliant? Book a demo with our expert team to learn more about how our solutions can support you.
Top Trends in Finance 2025
Read part 1: Why your growth strategies should be data-driven
Read part 2: Important regulation changes you need to be aware of
Read part 3: Why you should be paying attention to embedded finance
Read part 4: Technology challenges in lending and how to solve them
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