TOP 10 FINTECH PREDICTIONS FOR 2026

The fintech sector enters 2026 facing a period of significant structural change. Companies face the reality of having to adopt digitalization or be left behind. The industry is transitioning from a growth-focused phase to one emphasizing profitability, regulatory compliance and operational resilience.

Traditional financial institutions continue to close the gap as digitalization provides a competitive advantage, leading to growth. The market also calls for an increase in scale and regulatory expertise. Technologies including AI, blockchain infrastructure, and advanced security protocols have moved from experimental deployments: will they become core to operational systems?

Economic headwinds and tightening monetary policy are forcing a reassessment of business models across the sector, while regulatory frameworks continue to evolve in response to emerging risks and market innovations.

So, what could be next on the cards for the fintech industry?

10. Real-Time Payments Become the Global Standard

Key facts:

• US$60tn - total value of instant payments in 2025 (Juniper Research)
• 5.9 billion transactions processed by the UK’s Faster Payments Service in 2024
• 1973 - the year the first real-time settlement system (Zengin - Japan) was created

Instant payments could become ubiquitous across developed economies, relegating traditional payment processing. The UK’s Faster Payments and SEPA equivalents may strengthen cross-border rails.

Cash flow management could be redesigned around real-time liquidity, while customers expect instant settlement as standard. Pressure may increase on traditional payment cards as account-to-account (A2A) models rise.

9. Fintech Consolidation Accelerates

Key facts:

• Global fintech funding dropped 12% in 2024
• 33 of the 70 largest fintechs were profitable in 2023
• 150 fintech acquisitions by traditional banks from 2014-2024

Economic pressure and maturing markets could accelerate consolidation. Unprofitable fintech may shut down or be acquired, while larger players pursue strategic M&A.

Banks may continue to buy rather than compete, and regulators could intensify scrutiny to balance innovation and stability. Venture capital may shift toward clearer profitability paths.

8. Central Bank Digital Currencies Gain Traction

Key facts:

• Over 130 countries exploring CBDCs
• The Bank of England’s digital pound consultation saw 50,000 responses

• China’s e-CNY remains the world’s largest CBDC pilot

Major economies may launch or expand CBDC pilots. CBDCs could reshape cross-border payments through near-instant settlement and lower costs.

Commercial banks might act as distribution partners. Programmable money could unlock new private-sector innovations.

7. Sustainability in Fintech Surges

Key facts:

• US$4.9bn in global sustainable fund inflows (Q2 2025)
• Mandatory climate risk disclosures under EU CSRD from 2024
• £632m invested in UK green fintech in 2024

Growing concern over greenwashing could increase demand for verified sustainability metrics. Carbon tracking inside banking apps may become standard.

Climate-focused fintech may shift from niche to mainstream as regulation tightens. Green bonds and ESG investments may dominate wealth platforms. AI-based ESG screening could shape portfolio decisions.

6. Quantum-Resistant Cryptography Becomes Essential

Key facts:

• NIST releases first post-quantum cryptographic standards (2024)
• US$1bn expected revenue in quantum cryptography
• US$219.2bn quantum cryptography global market size in 2024

As quantum computing advances, financial institutions will migrate to quantum-resistant systems. Regulators may consider quantum-safe standards foundational to secure infrastructure.

5. Crypto Regulation Matures Globally

Key facts:

• EU’s MiCA fully applicable from 2024
• UK aims to become a global crypto hub
• Global crypto market cap exceeded US$2.6tn in 2024

Clearer regulatory frameworks may encourage institutional adoption. Stablecoins may face strict reserve requirements, while cross-border crypto alignment could improve due to growing regulatory cooperation.

4. Open Banking Expands to Open Finance

Key facts:

• 10 million active UK open banking users
• FCA’s open finance roadmap targeting publication in 2026
• 14 billion annual API calls

Open finance would integrate pensions, investments, mortgages and insurance-giving consumers complete control of their financial data.

Third-party providers may create unified financial dashboards, while regulators face pressure to ensure privacy and competition.

3. Global Stablecoin Adoption

Key facts:

• US$8.9tn processed by stablecoins in H1 2025
• Stablecoin transfer volumes exceed Visa and Mastercard
• Market projected at US$500-750bn

Stablecoins may evolve from speculative assets to standard settlement infrastructure. Payment companies could adopt them for cross-border transactions. Asset managers may treat stablecoins as default on-chain cash.

2. AI-Powered Hyper-Personalisation Transforms Banking

Key facts:

• AI in fintech projected to reach US$41.16bn by 2030
• 75% of financial firms already using AI
• 74% of organisations increased investment in AI and GenAI

AI could anticipate customer needs in real time. Conversational AI could replace traditional customer service. Algorithmic bias concerns may prompt stronger governance frameworks.

1. Embedded Finance Becomes Commonplace

Key facts:

• Embedded finance market projected at US$7.2tn by 2030
• Banking-as-a-Service revenue to increase 158% by 2028
• BaaS global market to reach US$22.6bn by 2032

Embedded finance may become the default across sectors. Non-financial companies can integrate banking seamlessly into customer journeys. Banks may shift towards providing backend financial infrastructure. Consumers will expect invisible, contextual, instantly available financial services powered by AI.

Source compilation: fintechmagazine.com