Vixio Survey Reveals Compliance Overload: Majority of Payments Organisations Report Compliance Function Overwhelmed at Least Monthly

LONDON, 23 January 2025 – Vixio, a leading provider of regulatory intelligence solutions, is proud to release its 2025 Payments Compliance Outlook. A survey of 127 payments organisations worldwide reveals that entering 2025, regulatory challenges and compliance pressures are a pressing issue for payments firms, with a majority of respondents reporting their compliance functions are overwhelmed at least once a month, and they expect that burden to increase in 2025.

With major new regulations on the horizon in multiple jurisdictions and the threat of enforcement action a constant worry, the compliance function is under unprecedented strain. Adding to these pressures, advancing technologies and increasingly sophisticated fraudsters are creating complex challenges for both regulated and non-regulated firms.

Key Survey Findings:

• 55% of respondents report that their compliance teams are overwhelmed at least once a month.
• 46.5% rank staying compliant with regulatory changes among their top three challenges for 2025.
• 59% believe the compliance burden will increase in 2025.
• Nearly one-third cite avoiding fines and licensing risks as a key challenge in 2025.
• 65.4% of organisations plan to expand their compliance teams in 2025, though many will also rely on outsourcing solutions.

“The speed and volume of regulatory changes are pushing compliance teams to their limits,” said Roseanne Spagnuolo, Vixio’s Chief Content Officer. “Businesses must monitor regulatory changes, industry trends, and technological advancements in real-time to make informed decisions and tackle compliance challenges effectively.”

The Growing Regulatory Burden

A majority of firms surveyed expect the compliance burden to increase in 2025, which aligns with the scale of regulatory updates, underscoring the immense pressures facing compliance teams

In the first nine months of 2024, regulators issued a total of 523,347 updates, including 1,434 specific to the payments sector. Of these, 375 required some form of action, according to Vixio’s Horizon Scanning tool. In addition, banks in the euro area incurred over €38 million in penalties in the first half of 2024 alone, according to Vixio’s 2024 Enforcement Tracker Report.

“As compliance becomes increasingly complex, leveraging technology and outsourcing can help businesses stay ahead of regulatory changes while optimizing resources,” said Spagnuolo. “Tools like Vixio’s Horizon Scanning enable organisations to proactively address risks and opportunities, ensuring compliance without overburdening their teams.”

Advancing Technology and Fraud Concerns

Advancing technology and fraud are also an increasing concern for payments firms, with ICT and cybersecurity, data protection and fraud among the top three organisational priorities for 2025. These areas are expected to remain priorities, as they are essential for maintaining operational resilience, a key focus for regulators this year.

Regulators are also looking to understand and manage the risks of artificial intelligence (AI). Regulatory action on AI has currently focused on information gathering, promoting best practices, and increasing awareness of AI-driven financial crime. Most jurisdictions have refrained from implementing comprehensive AI regulations, opting to let the technology evolve and allow firms to explore its potential.

However, some regions, including the EU, China, and Canada, have introduced AI regulations that set clear boundaries on how the technology can be used. Other regulators are closely monitoring these early adopters to inform their own regulatory frameworks.

Overcoming the Compliance Overwhelm

Expanding compliance teams is the most favored approach among respondents, with 65.4% planning to grow their compliance staff within the next year. However, hiring new staff can be costly, making outsourcing an attractive alternative.

A clear majority of firms surveyed are using some form of outsourcing for their compliance functionality. Nearly one in five respondents (19.7%) reported outsourcing extensively, and over half (56.7%) said they outsource at least some compliance tasks.

Leveraging external tools can boost efficiency and reduce confusion in areas like regulatory monitoring, offering a cost-effective way to optimise resources and identify risks and opportunities early. Vixo’s Horizon Scanning tool, for example, enables companies to track real-time regulatory changes and deadlines across more than 140 global jurisdictions, including all U.S. states, helping firms better allocate resources, plan strategically, and maintain a competitive edge.

To learn more about simplifying compliance management with Vixio’s award-winning regulatory intelligence solutions, visit vixio.com.

Join Vixio analysts as they dive into the report’s findings during a live webinar on January 30th. Register here to gain expert insights into compliance trends for 2025.

About the 2025 Payments Compliance Outlook

Vixio’s 2025 Payments Compliance Outlook, titled Compliance Unburdened: How Technology and Outsourcing Can Tackle Regulatory Overload, is based on a survey of 127 payments organisations based in the US, the UK, Germany and Australia, with operations in North America, Central and Eastern Europe, Western Europe, Asia-Pacific, the Middle East and North Africa, and Latin America and the Caribbean.

Read the full report at https://www.vixio.com/research/paymentscompliance-outlook-2025.