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As we turn the page into 2026, the financial services landscape stands at a pivotal intersection of innovation, risk and opportunity. What once was disruptive has now become operational imperative, particularly as AI, embedded ecosystems and regulatory dynamics shape the very foundations of banking, markets and customer engagement.
The lessons of the past year were clear: leaders do not succeed simply by deploying technology, they succeed by embedding it responsibly, with human-centric design, risk awareness and scalable governance. At First Derivative & EPAM, we see these trends play out daily as we help clients modernise platforms, harness data, and embed intelligence into operations. With that in mind, here are my top 10 predictions for Financial Services in 2026.
In 2026, AI will increasingly become core to everyday operations, from credit decisions and compliance to personalised customer interactions. The shift is from assistive models to autonomous, agentic AI systems that execute whole workflows without human intervention. Delivering AI at scale requires robust data pipelines, integrated analytics, and platforms that can support continuous learning – areas where FD’s & EPAM’s Data and Application Engineering services help clients implement AI safely and effectively.
Regulators are no longer catching up, they are moving proactively. Financial institutions will embed regulation and risk controls directly into their tech stack, making governance and compliance first-class citizens of digital transformation. Expect enterprise-wide auditability, real-time reporting and strong accountability across AI, data and third-party integrations. FD’s Regulatory Compliance & Reporting and Financial Regulation services support this integration, ensuring regulatory requirements are fully integrated into all relevant parts of a banks ecosystem.
With switching costs negligible and choice abundant, customer experience will be a true battleground. Hyper-personalised services, driven by real-time data and predictive analytics, will redefine loyalty. Conversational and intelligent interfaces will handle complex queries with unprecedented precision.
Financial services will no longer be confined to traditional channels. Embedded finance and Banking-as-a-Service (BaaS) will continue to proliferate across ecosystems – commerce, platforms, marketplaces and IoT. Instead of seeking customers, services will meet them in the moment of need.
Throughout 2026, payments increasingly becomes frictionless, instantaneous, and deeply intelligent, anticipating needs and triggering actions automatically. Real-time rails and programmable money will render batch settlement archaic for some cases, and institutions that master payment orchestration will unlock new revenue models.
As digital services deepen, fraud tactics become more sophisticated. Winning in 2026 will not just be about innovation, it will be about anticipating threats, protecting customers and fortifying trust. Firms that make security visible, intuitive and seamless will translate safety into loyalty.
Alongside traditional rails, tokenised assets and stablecoin settlement will grow into meaningful infrastructure, not just niche instruments. Digital representations of value promise faster cross-border flows, deeper liquidity and new product models, albeit with tighter regulatory guardrails.
Rising investor engagement and shifting risk appetites will drive growth in fee-based wealth management. AI-enabled planning tools will personalise guidance, while digital advisory services democratise access beyond high-net-worth segments.
Legacy systems will no longer suffice. Composable, API-first and cloud-native architectures will be the foundation for rapid innovation, robust resilience and scalable growth. Firms that remain tethered to monolithic systems will struggle in speed and flexibility.
Finally, technology, especially AI, must serve people. Human-centred design, fairness, transparency, and explainability will define how services are perceived and adopted. Organisations that design systems with users in mind will see better adoption, greater trust, and more measurable outcomes. Across FD’s Business Services, Engineering Services, and Data Solutions, we help embed human-centric design into technology, creating solutions that people trust and use.
Navigating this rapidly evolving landscape is a complex challenge, from implementing AI at scale, to embedding regulatory compliance, to modernising architecture and payments. That’s where First Derivative and EPAM can help. With deep expertise across financial services, data engineering, digital transformation, and AI-driven innovation, we work with clients to turn emerging trends into tangible advantage, helping institutions not just to keep pace, but lead in 2026 and beyond.
