Top regulatory challenges for financial services companies in 2020

By Pete Settles

Amy Matsuo, Advisory principal and national leader for regulatory insights for KPMG’s Financial Services practice, has just issued a new report on the 10 key regulatory challenges facing financial services companies for 2020. This is the fifth edition of the annual report that includes recurring challenges and some new ones this year.

The report says regulators and policy decision-makers continue to struggle with the pace of change in the industry, as well as the interconnectivity of industries through data and technology.  

Each of the key regulatory challenges is evaluated in the context of five core business imperatives, which include:

  • Technology transformation
  • Customer interaction
  • Payments modernization
  • Market expansion
  • Cost efficiencies

Topping the list in this year’s report is geopolitical change, followed by divergent regulation and data protection and governance. Geopolitical risks related to trade agreements and sanctions, anti-trust laws, and specific regulations/requirements will drive business changes and will have the most impact in the near term. 

Matsuo also writes:

  • New technological innovations have made the world smaller and more connected and vulnerable to change.

  • Companies must be alert to the heightened risk of fraud and financial crime, which can thrive in times of uncertainty.

  • Customer demand for personalization and seamless global access to products and services is driving risks related to technology development and third-party relationships.

  • Increasing reliance on third parties has focused regulators on firms’ abilities to quickly adapt to change and exhibit resilience to disruptions.

The report notes that the transition away from LIBOR in favor of new alternate reference rates will impact product offerings and pricing across multiple jurisdictions, though the new rates are expected to better insulate jurisdictions from geopolitical risks.

To see the rest of the top 10 regulatory challenges for financial services companies in 2020, you may download the full report below. If you would like to set up an interview with Matsuo to discuss the report, please contact Pete Settles @pgsettles or

Media kit

Pete Settles

Pete Settles

Director, Corp. Comm., Financial Services, KPMG US

+1 201-505-6065

Related content


Amy S. Matsuo

Amy S. Matsuo

National Leader, Regulatory Insights, KPMG US

+1 919-244-0266