‘What’s Top Of Mind?’ Penny Hughes’ column

2025: Preparing for a year of regulatory changes

This year is set to be a pivotal one for financial services, with new, significant regulations coming into effect that will reshape how banks and financial institutions (FIs) operate globally.

In the EU, the Digital Operational Resilience Act (DORA) will enforce stricter requirements on managing risk and ensuring operational continuity. Meanwhile, Verification of Payee (VoP) regulations are expanding alongside instant payment mandates to enhance consumer protection and prevent fraud.

In the UK, the Payment Systems Regulator (PSR) is intensifying its focus on tackling authorised push payment (APP) fraud.

Across the Atlantic, the United States is advancing the modernisation of its payment infrastructure through the Federal Reserve’s move to ISO 20022 for Fedwire.

Together, these changes mark a global shift towards greater resilience, transparency, and security in financial services, compelling institutions to adapt to maintain customer trust in an increasingly dynamic environment.

Yet, for many institutions, the pace of change can feel overwhelming. Financial services are built on trust, and ensuring operational resilience is fundamental to maintaining that trust.

With these challenges on the horizon, I wanted to offer you my perspective on how to prepare for a year of regulatory changes.

Crucial to tackling these changes is to be more innovative, as this approach will play a critical role in this transformation. Cloud-native platforms, such as those offered by Form3, are at the forefront of this change.

By reducing reliance on legacy infrastructure and enabling real-time, account-to-account payments, these platforms provide the agility that banks and FIs need to stay ahead. More importantly, they offer peace of mind to customers, ensuring seamless, secure payment experiences - even in the face of evolving risks.

Change is never easy, but it brings opportunities for those who are prepared to adapt. The incoming new regulatory landscape presents a chance to build resilience, not only in systems, but also in customer relationships. 

As we look towards 2025 and beyond, one thing is clear: those who prepare for change today will be the leaders of tomorrow. The financial services sector has always been about managing risk and building trust. Now, with the right strategies in place, banks and FIs can strengthen both, navigating change with confidence and emerging stronger on the other side.

I wish you all a happy and productive year ahead.

Written by

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Penny Hughes CBE Board Member

Penny is a very experienced business leader. After a 10-year executive career with Coca-Cola, Penny has enjoyed a busy Non-Executive portfolio, working on more than 20 Boards covering consumer brands, mobile and media tech, banking, leisure and property. Brands include: The Body Shop, The Gap & Morrison’s Supermarkets, Aston Martin Lagonda; Vodafone, Trinity Mirror & Reuters, Skandinaviska Enkilda Banken & Royal Bank of Scotland; The Gym Group; iQ Student Accommodation & Riverstone retirement living.

Alongside her business career, Penny enjoys family life and various not-for-profit responsibilities that have included Trustee, British Museum and President, Advertising Association.