Fintech has revolutionised financial services through rapid innovation, but it has also introduced new vulnerabilities that malicious actors are quick to exploit. Staying ahead of financial crime now means proactively shaping the future of fintech compliance by anticipating emerging challenges and leading with innovation.
As regulatory scrutiny intensifies and criminals deploy sophisticated tactics, fintech companies must adopt agile, forward-looking strategies. Below, we explore six critical trends shaping the future of fintech regulatory compliance and what they mean for your organisation.
AI-powered real-time transaction monitoring
While AI-driven monitoring isn’t new, its role has shifted from incremental improvement to existential necessity. Criminals now deploy generative AI for hyper-realistic fraud, forcing fintech companies to adopt self-learning systems that evolve in real time. Unlike static rule-based tools, next-gen AI uses unsupervised learning, behavioural biometrics, and quantum-inspired algorithms to pre-empt threats like deepfake social engineering, before damage occurs.
With regulations like the EU’s DORA mandating “preventive” compliance, legacy systems are obsolete. Fintech companies must treat AI not as a one-time upgrade but as a continuously adaptive shield in this endless battle.
Cross-border collaboration and data sharing
Financial crimes are inherently borderless, yet many fintech compliance systems remain siloed. Regulatory bodies are now emphasising public-private partnerships to combat this disconnect. The Bank for International Settlements (BIS) recently highlighted the success of “supervisory technology” (suptech) platforms that aggregate cross-jurisdictional data to trace illicit flows.
Fintech companies that integrate these tools can meet fintech regulatory compliance demands and position themselves as trusted allies in the fight against crime. Decision-makers must champion interoperability and invest in secure data-sharing infrastructures.
Regulatory sandboxes: Balancing innovation and compliance
Regulatory sandboxes are now a universal tool for fintech companies to test disruptive solutions while adhering to compliance frameworks. More than 50 jurisdictions use these controlled environments to foster cross-border collaboration and harmonise bloc-driven standards. Sandboxes accelerate market entry, offer regulatory clarity, and attract investor interest, yet face challenges like limited scalability and fragmented rules.
Innovators are addressing gaps with virtual testing platforms and global alliances that streamline multi-jurisdictional trials. For fintech companies, engaging in these programs is strategic, transforming compliance hurdles into opportunities to lead in a tightly regulated yet fast-evolving sector.
The rise of the "regulatory airport" in fintech compliance
A novel concept gaining traction is the regulatory airport, a centralised hub where fintech companies navigate global compliance requirements seamlessly. Unlike traditional sandboxes, these platforms act as "terminals" connecting firms to multiple jurisdictions, enabling simultaneous testing of cross-border products such as crypto remittances or embedded finance.
Backed by institutions like the World Economic Forum, regulatory airports standardise processes like KYC/AML checks while preserving local rules.This model slashes compliance costs and accelerates scaling, particularly for firms targeting emerging markets. As fragmentation persists, expect regulatory airports to become critical infrastructure for fintech companies aiming to operate globally without drowning in red tape.
Decentralised finance (DeFi): From regulatory scrutiny to co-created frameworks
While DeFi’s compliance challenges aren’t new, 2025 marks a pivot from reactive enforcement to proactive, industry-shaped solutions. Regulators are no longer just sanctioning mixers; they’re mandating embedded compliance while fintech companies deploy AI-driven on-chain forensics to de-anonymise transactions in real time.
The trend lies in collaborative experimentation: Regulators are piloting DeFi-specific AML tools such as zero-knowledge KYC proofs with firms, balancing privacy and transparency. As DeFi scales, 2025 will see these frameworks mature from theory to enforceable global standards, a paradigm shift for decentralised ecosystems.
Quantum computing: From theoretical risk to regulatory mandates
Quantum computing’s threat to encryption is no longer speculative. This year will likely mark the inflection point where post-quantum cryptography (PQC) transitions from R&D to regulatory imperative. The BIS now mandates quantum resilience for critical financial infrastructure, targeting protocols like blockchain and real-time payment systems.
Fintech companies are racing to adopt quantum-safe algorithms and partner with cloud providers embedding post-quantum cryptography (PQC) into APIs. Meanwhile, regulators are piloting “quantum stress tests” to expose vulnerabilities. The trend shows that proactive adoption is a compliance milestone as quantum advancements are forcing fintech companies to future-proof now or risk systemic collapse.
A proactive compliance strategy win
The future of fintech compliance hinges on agility, collaboration, and technological foresight. Decision-makers must:
- Embed AI/ML into compliance workflows to stay ahead of criminals.
- Advocate for global regulatory alignment to reduce fragmentation.
- Leverage sandboxes and suptech to innovate responsibly.
- Integrate quantum readiness into long-term risk strategies.
How can Infosys BPM help you engage with these trends today?
At Infosys BPM, we bring over two decades of experience in financial crime compliance (FCC), supporting leading global organisations with a blend of deep domain expertise and cutting-edge technology. Our holistic approach combines advanced analytics, AI-powered automation, and regulatory advisory to drive smarter compliance and proactive risk management.
With a presence across 36 global delivery centres and oversight of more than 9 million transactions annually, we deliver measurable outcomes. We help clients achieve up to 40% in cost savings and significantly boost operational efficiency.
