As we step into 2025, a new year and a new Presidential administration bring anticipated changes to the economy, banking, and fintech sectors. From evolving regulatory frameworks to emerging trends in deposit management, the landscape is poised for significant developments. At Ampersand, we’re committed to helping you stay ahead by sharing our insights on the key trends and regulatory changes to watch over the next twelve months.
What’s Next in 2025
1. Banking Regulations and Capital Requirements
Policymakers and industry leaders alike continue to emphasize the need to streamline capital-raising processes for banks, particularly community banks. Simplifying these procedures can provide vital support to local economies, ensuring that community banks remain resilient and prosperous. Expect ongoing discussions around easing capital requirements while balancing financial stability.
2. Non-Banks and the Regulatory Environment
Fintech companies, deposit management providers, and other non-bank entities are increasingly integral to the financial ecosystem. We believe they should share in regulatory responsibilities to create a level playing field. At the same time, reducing redundant oversight will encourage partnerships between banks and fintech innovators, fostering collaboration and efficiency.
3. Deposit Insurance
While the FDIC frequently reviews its deposit insurance programs; major changes are unlikely without a significant systemic event. The 2008 Transaction Account Guarantee Program was a crucial tool during the financial crisis, and its principles may inspire future initiatives. For example, extending protections to non-interest-bearing business operating accounts could bolster small businesses and the broader economy.
4. Brokered Deposits
Proposed rule changes in 2024 targeted custodial accounts and brokered deposit definitions, but these are expected to take a backseat to refining the 2020 revised brokered deposit rules. This focus ensures a more consistent regulatory approach, avoiding unnecessary disruptions while maintaining stability in deposit management.
5. Fintech Innovation
The House Financial Services Committee’s Subcommittee on Digital Assets, Financial Technology, and Artificial Intelligence continues to prioritize fostering innovation. By creating a supportive environment for fintech companies, the federal government underscores its commitment to encouraging technological advancements while avoiding overregulation. Expect significant progress in digital assets and AI-driven financial solutions in 2025.
From banking regulations to deposit insurance and fintech innovation, the financial landscape in 2025 is rich with opportunity and challenges. At Ampersand, we’re here to guide you through these changes with expert insights and deposit management strategies that align with your goals. Stay informed and prepared as we navigate this dynamic year together.
Learn how Ampersand can help your organization with deposit management strategies. Contact Ampersand to get started.
