Key trends shaping financial analytics in 2025

• AI is transforming analytics with automation, forecasting, and personalized insights.

• Political volatility and deregulation require agile, scenario-based risk modeling.

• Real-time risk management is essential—intraday data empowers faster, smarter decisions.

The financial industry is entering an era marked by rapid technological advancements, shifting political landscapes, and increasing market complexity. In 2025, financial professionals must brace for several key trends that will have a profound impact on the way they analyze, predict, and manage market movements. The rise of artificial intelligence, growing political volatility, deregulation, and real-time risk management at an ever-increasing speed are just some of the trends that will define the financial analytics landscape this year.

Let’s dive into the top trends that will shape financial analytics in 2025 and how financial institutions can navigate this evolving landscape with the right tools and strategies.

Artificial Intelligence (AI) is no longer a futuristic concept but a crucial element of financial analytics. In 2025, AI will play an even larger role in automating complex tasks, enhancing decision-making, and providing real-time insights. Financial firms are investing heavily in AI to stay competitive, reduce operational costs, and offer increasingly personalized services to their clients. As AI tools become more sophisticated, their ability to analyze large volumes of data, identify patterns, and forecast market trends will significantly enhance the ability of financial professionals to make informed decisions.

LSEG Analytics is leading the way in integrating AI into financial analytics. LSEG Analytics offers a wide variety of AI powered solutions, such as a proprietary AI Analytics Assistant which has the context of hundreds of underlying traditional financial services models and operates as an extension to the Visual Studio Code developer environment. This helps clients execute multiple tasks such as scenario analysis, multi-security risk assessments, and strategy creation.

Alongside these capabilities, LSEG has various predictive AI models. StarMine employs AI to provide predictive insights into market behavior, helping investors understand future price movements and potential risks.

Additionally, Yield Book incorporates AI and machine learning to analyze fixed-income securities, giving financial professionals a deeper understanding of market trends and portfolio risks. LSEG’s solutions are designed to enhance transparency, reduce bias, and ensure that AI tools are deployed responsibly, all while delivering the real-time, data-driven insights that financial professionals need to stay ahead of the competition.

Political uncertainty is a perennial driver of market volatility, and 2025 is no exception. The Trump presidency adds a layer of unpredictability to financial markets as well as an impact on global trade, reworking of regulatory policies, and shock to post-WW2 geopolitical norms. The potential for sudden policy shifts, international trade disputes, and changes in domestic economic policies could lead to sharp swings in interest rates, currency values, and stock prices. In such an environment, financial institutions must develop the agility to quickly assess risks and adapt to new market conditions.

LSEG Analytics offers over 20 years of fixed income analytics history across government and corporate bonds and its launching history across RMBS and CMOs as well. This will enable understanding and analysis of the impact of six presidential elections, the Covid-19 pandemic, and the global financial crisis (2008) across the entire fixed income market to name a few significant events.

These analytics are fully customizable, whether it’s getting history on a subset of the data or supplying unique assumptions and scenarios for the universe of securities. Yield Book’s market-leading analytics capabilities enable building financial models, meeting regulatory requirements, and developing trading strategies and are available on all major cloud providers, Snowflake, and soon Databricks.

During the first week of his second term, President Trump signed 36 Executive Orders. The topics ranged from encouraging US AI dominance, alleviating cost-of-living pressures with a focus on affordable housing, pausing rule making at federal agencies including the CFPB, and unleashing prosperity through deregulation. The administration has continued its efforts to reduce and remove perceived barriers to economic activity, particularly in the financial sector. While deregulation may stimulate economic growth and investment, it may also introduce new risks by reducing the safeguards that protect investors and the financial system. Financial institutions will need to adapt their strategies to navigate this new regulatory landscape.

For decades, LSEG analytics has been a trusted partner for regulatory reporting. Despite a de-emphasis on mandatory reporting and perhaps a significant reduction of the requirements in the near future, many clients continue to run extensive scenario analyses as a best practice to monitor and mitigate risk. The same framework, the macro-economic scenario-based approach, enables in-depth quantitative exploration across potential outcomes due to the fast changing administrative and geopolitical environment.

Our platforms also provide the exploration of investment theses by giving insight into key drivers, sensitivities, and the interplay between measurable indicatives and financial asset prices and performance.  Our fixed income analytics, in particular, allow historic performance analysis of key events and the resulting impact on sovereign, corporate, municipal, and securitized instruments. We allow customers to unpack historical events to offer insight into future possibilities.

In the fast-paced financial markets of 2025, waiting for end-of-day reports to assess risk is no longer sufficient. The move towards intraday analytics, where financial professionals can monitor and assess risks in real time, is becoming increasingly crucial. With markets responding to a wide range of global events in real-time, the ability to assess and manage risk throughout the trading day is essential for staying competitive.

LSEG Analytics offers 200+ live curves across globally across treasury and swap curves. We are excited to be extending our fixed income intraday capabilities in the US to Mortgage Rates and Volatility surfaces, enabling customers to evaluate the risk of their mortgage holdings multiple times per day.

This enables customers to get OAS and duration measures throughout the day, so that they can hedge their risk appropriately, evaluate trades with up-to-date market color, and stay within the risk guidelines of their firm.

As 2025 unfolds, financial professionals will need to stay ahead of the curve by embracing the latest trends in AI, political volatility, deregulation, and real-time risk management. These trends will not only shape the financial markets but also redefine how financial analytics are performed. With the right tools and strategies, firms can turn these challenges into opportunities, positioning themselves for success in an ever-evolving landscape. At LSEG Analytics, we are committed to helping our clients navigate these changes, providing the expertise and solutions they need to stay competitive, and make informed decisions in a rapidly changing world.

Thank you to Andres Gomes, Head of Financial Analytics Product for your contribution to this article.