European fintech showed resilience in 2025, recording increased investment levels compared to 2024, powered by the rise of technologies like stablecoins, embedded finance and AI. 2025 also witnessed plenty of fintech M&A activity, while excitement is growing around potential fintech IPOs in the years ahead.
Here, fintech executives predict some of the themes we will likely see in 2026.
Andrew Crocombe, head of embedded banking, ClearBank, said embedded finance will represent a big opportunity for businesses in 2026.
He said: "Historically, firms looking to deliver embedded services have faced a compromise – work with a BaaS (Banking-as-a-Service) provider offering agility or an incumbent bank with proven governance and control frameworks but lacking the real-time APIs they need.
"Next year we expect next-generation, API-based banks to become the standard for embedded account and payments services, allowing corporates to create seamless experiences that deepen engagement, increase customer loyalty and drive new revenue streams.
"By building on top of a regulated bank’s proven infrastructure, businesses can deliver competitive and compliant services and features without incurring the substantial cost of obtaining a banking licence.
"It also means brands don’t need to compromise the quality of their services and maintain a customer experience consistent with their brand."
Chris Mason, CEO, Orbital, says interoperability will define the success of stablecoins in 2026.
He says: “The big problem facing stablecoins is interoperability. That is, most coins and chains can’t talk to each other.
"Many of the current launches are effectively closed-loop tokens, useful as internal ledgers but not interoperable to create a wider network that gives the scale and reach for mass adoption.
“Visa and Mastercard made global interoperability work, where others failed, by standardising roles and rules, then building shared networks that let thousands of banks, processors, and merchants transact as if they were on one unified system.”
Mason has called on industry collaboration for stablecoins to succeed. He added: “History speaks for itself: real scale for stablecoins will only come from the network effect we see in existing payment systems. If this is to be achieved, it will require industry collaboration at a time when different power players are jostling for market position.
"Whether competition can be set aside for collaboration will define the success of stablecoins in 2026.”
Amid the rise of businesses looking to leverage AI, Andy Mason, chief operating officer, NatWest Boxed, says it will be people who give businesses the AI advantage in financial services.
He said: "In 2026, people will be the true AI advantage in financial services, not models or tools. The industry has a greater challenge: how to successfully develop people, providing them with the skills to successfully use AI, and in doing so, reduce apprehension. The gap is now as much a cultural issue as a technological one.
"The institutions making the strongest progress are those investing in AI-ready workforce initiatives. Formal AI literacy programmes, structured tool training, and clear guidance on responsible use are giving employees confidence and reducing resistance.
"Crucially, these programmes show people how AI can augment their roles by reducing friction rather than replacing them."
On dealing with staff apprehension about AI, Mason said businesses should embrace transparency and open communication.
Hristo Borisov, co-founder and CEO, Payhawk, said that amid the rise in AI, “autonomous finance” will occur only in certain areas.
Borisov said: “Autonomous finance implies systems making decisions and executing end-to-end. That will happen in pockets, under strict constraints, and mostly in lower-stakes domains. What will actually scale is controlled delegation. Software will do more work, but inside explicit authority limits.
"If a system can touch the ledger or payment rails, you need human-in-the-loop supervision that can explain what happened, intervene fast, and shut it down when conditions change.”
Further tapping into the AI trend, Mark Andreev, chief operating officer, Exactly.com, said 2026 will see the continued rise of agentic commerce.
He said: "We anticipate that AI will likely play a vital role in helping users research and compare, and we may even see test runs of autonomous transactions, ushering in a new era where AI is a key driver of the shopping experience.” He also urged retail businesses to keep pace with consumer expectations.
He said: "Retail leadership is also undergoing a transformation: digital businesses must keep pace with AI-driven consumer expectations, while bricks-and-mortar stores need to figure out ways to integrate AI to enhance in-store experiences."
He added: “Shoppers are now demanding more than just a fast checkout and convenience – they expect transparency, security and a frictionless experience across channels that doesn’t involve a trade-off between safety and convenience."
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