Looking back, 2024 was a watershed year for regtech, with new applications and use cases, especially for AI-enabled tools. I think 2025 will build on what we have seen and take the intersection of regulation programs and technology innovation to a new level. Here’s some of what I see on the horizon for next year.
Data And Privacy
Safeguarding data and ensuring compliance with evolving privacy standards are increasing priorities.
With data privacy regulations tightening, regtech offers wealth management firms robust tools to safeguard sensitive data and ensure compliance. Advanced platforms provide automated data mapping, enabling firms to track personal data across systems and assess its use against privacy regulations like GDPR and CCPA. Real-time monitoring and AI-powered analytics help identify potential breaches or misuses before they escalate into violations.
Regtech solutions also simplify regulatory reporting by centralizing data privacy documentation, policies and workflows. For example, automated compliance tools can generate audit trails and privacy impact assessments, ensuring firms stay prepared for regulatory scrutiny.
Moreover, by integrating privacy management directly into existing compliance frameworks, firms can avoid silos and create a holistic approach to governance. In an era of increasing scrutiny, leveraging regtech to proactively address privacy risks not only ensures compliance but also fosters client trust, which is critical for long-term success in wealth management.
Real-Time Monitoring
The future of compliance lies in real-time monitoring systems that can detect regulatory violations as they occur, rather than after the fact.
Traditional models, relying on post-event reviews, are slow and reactive. Real-time solutions powered by AI and data integration enable firms to detect regulatory violations as they happen, minimizing risks and reducing costly penalties. Platforms that combine intelligent workflows, regulatory mapping and predictive analytics help compliance teams proactively address issues and streamline processes.
In 2025, firms embracing these advanced tools will transform their compliance departments into strategic partners, enhancing operational resilience while staying ahead of regulatory expectations.
Regulation Of AI
SEC exam priorities for 2025 include assessing whether firms have implemented adequate policies and procedures to monitor and supervise their use of AI.
The SEC’s 2025 focus on AI oversight highlights the importance of governance frameworks for firms deploying AI. Developing policies ensuring transparency in algorithm design, maintaining audit trails and regularly validating AI outputs are critical steps. Tools that centralize compliance workflows and provide real-time oversight can help firms stay aligned with regulatory expectations.
Additionally, educating teams about AI-related risks and regulatory changes is essential to maintaining accountability. By leveraging technology to automate governance and documentation, firms can confidently integrate AI while demonstrating regulatory compliance.
Blockchain For KYC And AML
Blockchain is poised to drastically improve Know Your Customer (KYC) and Anti-Money Laundering (AML) processes.
Blockchain holds significant promise for KYC and AML by enabling secure, decentralized systems that streamline compliance processes. Shared, immutable ledgers reduce inefficiencies by minimizing duplicative data checks, while smart contracts automate key compliance triggers.
These technologies can create tamper-proof audit trails and lower costs associated with manual oversight. Integrating blockchain with existing compliance platforms ensures seamless adoption and scalability. As regulations evolve, firms that embrace blockchain solutions will not only reduce operational friction but also build a robust, future-ready compliance infrastructure.
Sid Yenamandra is Founder and CEO of Surge Ventures.
