Financial Sector Faces Tech, Crime, and ESG Shifts

The financial sector is experiencing major changes driven by technological advances, regulatory shifts, and evolving economic conditions. J.P. Morgan and BNY's Project AIKYA is utilizing federated AI frameworks to improve fraud and money laundering detection while maintaining privacy and scalability. A DBS survey highlights finance leaders' increased focus on resilience through data-driven intelligence, advanced analytics, and robust management of liquidity and foreign exchange. The ESG agenda in banking is facing new challenges, particularly with rising anti-ESG sentiment under President Trump, requiring banks to adapt to changing stakeholder and regulatory demands. Global criminal networks are increasingly turning to Chinese underground banking systems to launder illicit funds, complicating detection for authorities. Additionally, AI-powered tools are enhancing personal finance management for retail consumers.