Fintech’s next chapter: The trends expected to shape 2026
European fintech is poised for further evolution in 2026, building on the increased investment and M&A activity seen in 2025. This growth is fueled by advancements in areas like stablecoins, embedded finance, and AI, suggesting a dynamic landscape for digital financial services. Industry experts predict these trends will shape the sector, creating new opportunities and challenges for businesses and consumers. Embedded finance is expected to become a standard for account and payment services, allowing companies to create seamless customer experiences. Next-generation, API-based banks will enable corporates to build competitive, compliant services without the need for a banking license. This approach allows brands to maintain a consistent customer experience and drive new revenue streams, offering a streamlined approach to financial integration. Interoperability will be crucial for the success of stablecoins, requiring industry collaboration to achieve wider adoption and scale. The current closed-loop tokens must evolve into a wider network, much like the interoperability achieved by Visa and Mastercard. Furthermore, it is expected that a human-in-the-loop will be necessary for implementing AI in financial services, with systems making decisions under strict constraints. The rise of AI will also redefine the shopping experience and agentic commerce, with AI playing a vital role in research and comparison. Digital businesses must adapt to the AI-driven consumer expectations, and brick-and-mortar stores need to find ways to integrate AI to enhance in-store experiences. Successful fintech companies will focus on developing their workforce through AI literacy programs and providing clear guidance on responsible use to increase confidence.
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