• Alasdair Anderson, VP of EMEA at Protegrity


• 10.01.2025 09:45 am
#2025Predictions #FintechTrends

As we enter 2025, the global economic landscape remains a mix of challenges and potential shifts that will shape markets and industries worldwide. From high interest rates to the evolving impact of AI, there are several key factors that will define the year ahead. While there will be friction in some areas, persistence, agility and out-of-the-box thinking will ensure a competitive edge.

Europe and the UK: Slow Growth Amid High Interest Rates

The economic slowdown in the European Union (EU) and the UK will likely persist into 2025, with high interest rates continuing to weigh on consumer spending and business investment. Central banks’ inflation-control measures are dampening growth, making a swift recovery unlikely. Governments will be under pressure to boost the economy through fiscal policies, increasing social program spending and infrastructure investments. The success of these efforts will depend on how quickly businesses adjust to a more cost-conscious climate and how consumers respond to rising financial pressures. The balancing act between controlling inflation and sustaining growth will be the key to success in 2025.

Growing and new regulations like DORA

We live in a world where there is ever-growing and new regulations such as the EU Digital Operational Resilience Act (DORA), which will take effect on the 17th of January, reshaping cybersecurity and operational resilience in financial ecosystems. DORA will impose stricter requirements and also encourage resiliency in organisations, which will hopefully address the issues of securing insurance.

The positive consequence of this growing regulatory landscape is a shift toward outcome-based compliance, as current regulations are seen to focus on ticking boxes. This will ultimately lead to enhanced data security within sectors, and mitigated risk of major consequences from continuously scaling cyber-attacks. In 2025 organisations must be proactive in compliance, treating regulatory requirements as a baseline and building upon them to enhance customer experience and trust.

We will also see more regulations coming out that haven’t yet been predicted. Companies should treat these regulations as the minimum requirement that guides the usage of technology and look to build on these requirements. Maximising cybersecurity investments isn’t just about protection—it’s about creating a positive, trust-driven experience for customers in the long term. Security should go beyond compliance, ensuring that every interaction leaves customers feeling safe and confident. In 2025, the businesses that excel will be the ones that seamlessly blend robust security with exceptional user experiences.

The Breakout Year for AI

Finally, this year will be the breakout year for Artificial Intelligence (AI). In 2024 AI had to navigate the “trough of disillusionment” as early excitement met the reality of limitations. However, as organisations rethink their strategies, this phase of setbacks will unlock new opportunities. In 2025 AI is set to shift into the “plateau of productivity”: with refined AI models, scaled projects, and practical, high-impact applications. This will be a considerable shift in comparison to the toe-dipping and experimentation we’ve seen in 2024.

Against a backdrop of financial uncertainty and regulations adding further potential costs, organisations will be seeking cost-effective, efficient methods to remain compliant and reach their goals. This is likely to be a main area of opportunity for the AI industry, due to its practical applications of automating tasks, aiding teams in quickly analysing vast sets of data, and helping companies make smarter decisions without hiring more people. In 2025 refined, practical uses such as this will give organisations a major edge. This is especially true in sectors such as healthcare, finance, and manufacturing, where AI-driven automation and analytics are poised to transform operations.

2025 – A Year of Transition

In 2025 the global economy faces a mix of challenges and opportunities. Europe and the UK will see a slow recovery, hampered by high interest rates and weak demand. The U.S. may get a short-term boost under the Trump presidency, but rising debt and global trade tensions remain major risks.

Where AI is concerned, 2025 is a turning point and by the end of the decade, AI is set to become a powerhouse for real productivity gains. With challenge comes opportunity and by focusing on efficiency, smart investments, and embracing new technologies, businesses can expect to grow. Now is the time to innovate, adapt, and position for future success.