Six Banking & Financial Services Trends to Watch in 2026

The banking and financial services sector faces a defining year in 2026, as economic uncertainty, regulatory shifts, digital disruption, and AI innovation converge to reshape the industry. Looking ahead, Sara de la Torre, our Head of Banking, Financial Services and Insurance, spotlights six trends set to transform the sector: from mounting margin pressure and existential cyber risks to enterprise-wide AI adoption, data quality, regulatory acceleration, and rising demand for real-time, personalised, and trustworthy services.
 

1. Margin Pressure and the Search for New Revenue Streams

Persistently low interest rates and economic volatility are squeezing net interest margins, forcing banks to diversify. Fee-based services such as payments, wealth management, and advisory are rising in importance, while platform banking and embedded finance open new growth avenues. The winners will be those who leverage advanced analytics and clean, structured data to identify opportunities, segment customers, and support strategic diversification.
 

2. Cyber and Resilience Risk: Building Robust Defences

With new regulations like DORA in the EU and enhanced UK rules, digital resilience and third-party risk management are under the spotlight. According to our latest Financial Services & Insurance Pulse Survey, 91% of Financial Services & Insurance leaders cite cyber and fraud as their top threats, and most have suffered negative impacts from third-party risks. Banks must integrate real-time risk intelligence and supplier scoring, tailored to regional nuances, to ensure operational continuity and regulatory compliance.
 

3. AI at Scale: From Pilots to Enterprise Transformation

AI is now at an inflection point. 2026 will mark its leap from isolated pilots to enterprise-wide transformation, with banks now racing to deploy agentic AI for predictive analytics, risk management, and customer service automation. However, 64% of firms lack decision-grade data, and over half have seen AI projects fail due to poor data quality, underscoring that without a strong data foundation, even the most ambitious AI and transformation efforts are destined to fall short. Success depends on a trusted data layer: harmonised identifiers, lineage, and policy controls, to ensure explainability and regulatory alignment.
 

4. Data Quality and Open Finance: The New Competitive Edge

Data is the foundation for transformation. Banks are investing in modern data platforms, but foundational issues persist: over half (55%) distrust their internal datasets, and many struggle with silos and duplicates (52%). New open finance rules, including the European Commission’s Financial Data Access Regulation (FiDA) and the UK Data (Use and Access) Act 2025 (DUAA), are expanding data sharing. While FiDA comes into effect in 2026, only some parts of DUAA are active in the UK, with its data sharing provisions mainly focused on science and public interest sectors. These changes support more tailored offerings and cross-selling opportunities. Clean, interoperable data is essential to avoid model drift where decisions become less accurate over time due to old data and mis-matching in AI-driven personalisation.
 

5. Regulatory Acceleration and Compliance as Strategy

The pace of regulatory change is accelerating, with new requirements for operational resilience having come into effect in 2025 and remaining a central focus for banks. Stricter standards for AI governance and instant payments regulation are also advancing, with institutions expected to demonstrate ongoing compliance as these frameworks continue to evolve. Compliance is becoming a strategic advantage, with automated, real-time monitoring and reporting integrated into technology and operating models. Banks that adopt compliance dashboards and regulatory risk insights will be better positioned to anticipate and respond to change.
 

6. Customer Expectations: Real-Time, Personalised, and Trustworthy

Customer loyalty is being reshaped by three forces: the shift to mobile channels, the rise of fintech innovators, and growing expectations for transparency. Together, these trends are driving demand for instant payments, seamless digital experiences, and personalised services. To keep pace, banks must prioritise omnichannel engagement and data-driven personalisation. Yet, retention challenges and slow manual onboarding highlight the need for instant verification and trusted identity data, which accelerate transactions and build customer trust. Meeting these demands depends on high-quality data and operationalising compliance through live dashboards, real-time data checks, and transparent identity profiles. By doing so, banks can turn compliance from a constraint into a source of confidence.