Embrace innovation for a future-ready industry.
Dive into the insights and highlights from the KPMG Banking Horizons 2025 conference – designed to help you stay future-ready and prepared for what’s next in the banking industry. From emerging trends to strategic innovations, these takeaways will guide you in navigating change and unlocking new opportunities.
To discuss what this means for your organisation, connect with our experts.
The frontier firm is emerging – an organization where human expertise and AI-powered digital agents work together to deliver faster, more intelligent and more trusted outcomes.
At KPMG, our focus goes beyond technology. It’s about reshaping how we create value – combining human judgment, data and artificial intelligence to enhance decision-making, elevate the client experience, and strengthen trust in every engagement.
A frontier firm seamlessly integrates people and technology to deliver smarter, faster and more trusted outcomes.
The frontier firm represents a new balance of innovation and integrity. It’s where human empathy, ethical judgment and creativity meet the scale and speed of AI.
At KPMG, we’re helping clients across industries turn this vision into reality – building firms that are more trusted, resilient and future-ready.
ECB and CSSF on-site inspections show regulators are testing how ICT governance and resilience work in practice. Institutions face deep reviews of their decision-making, risk management and operational readiness. Supervisors now expect the C-suite and Boards to demonstrate direct control and understanding of ICT and cyber resilience. Senior leaders are interviewed and assessed on governance maturity, accountability, and their ability to steer under scrutiny.
A typical assurance journey entails:
Facing an on-site inspection? KPMG supports you to prepare, perform and progress. Learn more about preparing for IT on-site inspections, key focus areas and best practices for demonstrating operational resilience in the DORA era in our insights: DORA Oversight and IT on-site inspections in the DORA era.
Sustainable IT is an essential lever for reducing climate impact, particularly for service companies. Our approach integrates sustainability into the core of your business, turning IT from a cost center into a center of controlled performance and innovation.
KPMG experts are here to guide your journey, assess your Sustainable IT maturity and help you develop a clear action plan and strategy.
Europe’s AML and CTF framework is entering a new phase with the forthcoming AML Package, which will introduce directly applicable rules across all Member States and raise supervisory expectations. At the same time, client onboarding remains a central operational challenge.
Institutions face heightened scrutiny on risk assessment and data quality while striving to deliver a seamless and competitive client experience. Balancing regulatory rigor with operational efficiency has never been more complex.
Understanding how these two dynamics interact is essential for anticipating the next steps in compliance strategy: what has to be changed, what can be optimized, and where institutions may face pressure points.
On 8 October 2025, the Finance Ministry presented the 2026 budget bill to the Chamber of Deputies and made some announcements for the future. Notably, the government wants to continue to support the corporate market (incl. financial players).
After the US market transitioned to T+1 settlement in May 2024, it is now Europe’s turn to undertake this transformative shift in securities processing by October 2027. As preparations get underway, it is becoming evident that the old continent is not only more diverse but may also reveal some unforeseen challenges for the asset management sector
Following the lead of the US and other financial markets, the European Securities and Markets Authority (ESMA) has proposed moving from the current T+2 to a T+1 settlement cycle, with 11 October 2027 set as the target implementation date in the European Union. This initiative is being coordinated with both the UK and Switzerland, which plan to adopt the new regime on the same day, marking a significant step forward in enhancing market efficiency across the continent. The regulatory framework for this transition will be established through an update to the Central Securities Depositories Regulation (CSDR). It is important to note that while almost all publicly traded securities will fall within the scope of T+1, traditional investment funds are currently excluded, as – apart from Exchange Traded Funds (ETFs) – they are generally not listed on official trading venues.
While the advantages of T+1 settlement are evident, the transition also presents significant challenges. Despite substantial harmonization efforts in recent years, Europe’s financial landscape remains a patchwork of fragmented regulatory frameworks, diverse national market practices, and distinct infrastructural characteristics. In contrast to the relatively uniform securities market in the US, Europe comprises multiple trading venues, central counterparties (CCPs), payment systems, and central securities depositories (CSDs), each with its own unique features. Furthermore, the presence of nine different currencies (including the UK and Switzerland, but excluding Bulgaria) adds complexity, creating an immediate need to enhance foreign exchange (FX) processing capabilities well beyond the current recommendations of the EU T+1 Industry Committee.
The transition to T+1 settlement marks a pivotal moment for Europe‘s financial markets. As the continent stands on the brink of this transformative shift, the imperative is clear: preparation and coordination are key. Market participants must act now, reviewing processes, investing in technology, and ensuring compliance with the new settlement cycle. With concerted efforts across the EU, UK, and Switzerland, the transition to T+1 can be seamless and impactful, ushering in a new era of financial efficiency and security.
Basel IV represents a significant shift in banking regulation, introducing new requirements aimed at enhancing financial stability and risk management within the global banking sector. One of the new amendments is the introduction of an output floor, which aims to control the variability of risk-weighted assets resulting from internal models. On the other hand, private insurance may struggle to keep pace with growing risk transfer demand, and banks will eventually exhaust their credit limits on the most active credit insurance companies. This is where captive structuring comes in, offering multiple benefits that range from cost optimization to direct access to the reinsurance market.
In April, the SRB published the Expectations on Valuation Capabilities (EoVC) to enhance banks' operational readiness for resolution:
Given the scope of the EoVC, external expertise will be essential. Recognizing the scale of this initiative, we have a three-year period for its full rollout.
