2026 is poised to be a big year for fintech, both for individual users and UK firms. New governmental support emerging for fintech innovators in the UK will lead to expanded use cases for new technologies, while tightening rules for users will provide increased security and protection against malicious activity. Here, we take a look at the big changes set to impact the fintech sector in the coming year, with insight from the business asset finance experts at Anglo Scottish Finance…
Widespread CBDC usage edges closer
Both Central Bank Digital Currencies (CBDCs) and tokenised, blockchain-based payment systems have been trialled on an international scale in recent years, helping to modernise payments, while offering a trusted, regulated alternative to cryptocurrencies.
In 2022, Jamaica’s JAM-DEX became the world’s first CBDC to be accepted domestically as legal tender, though they’ve faced numerous challenges with integrating at merchant point-of-sale systems.
However, a number of successful trials of blockchain settlement rails have taken place for large-scale, cross-border transactions in the interim period, while successful CBDC introductions in Asia and Africa have coincided with shifting attitudes towards digital currencies.
Adoption and general familiarity with cryptocurrencies continue to rise. At last estimate, in 2024, there was an estimated 560m+ owners of cryptocurrencies worldwide. Growing crypto adoption has encouraged the growth of digital payments infrastructure and normalised digital money concepts.
With the European Central Bank hoping to have a political framework in place for the digital Euro by early next year, expect CBDCs to become more commonplace as we move through 2026.
AI improves user experience
Over the course of 2025, we’ve seen the introduction of AI agents throughout the fintech space, whether it’s in terms of researching investments, detecting fraud or providing a personalised customer experience. It’s safe to say that artificial intelligence is embedded throughout the fintech world, but in 2026, expect this to reach the next level.
AI agents are being used to provide initial customer support where guidance previously provided by chatbots will not suffice. As fintech companies build larger datasets for training their generative AI models on, expect to see the remit of customer service AI agents expand to handle a wider range of queries, freeing up the company’s staff to deal with more labour-intensive tasks.
In the longer-term, with banks aiming to move towards a fully autonomous approach to personal finance, agentic systems are likely to be able to hold conversations across multiple channels, make personalised recommendations and provide proactive financial guidance. During the coming year, we’re likely to see AI begin providing an improved customer service experience, with a gradual rollout of many of the features listed above.
Improved innovation support for fintech firms
The UK’s fintech sector is generally considered to be one of the world’s strongest and most lucrative, attracting more than £3.6bn worth of investment in 2024. Regulation for UK firms has always been airtight and well-trusted, which contributed to the sector’s rapid growth, encouraging external investment.
However, the same infrastructure that helped make the UK a hub for financial investment has failed to keep up with the pace of innovation, resulting in excessive red tape that’s preventing our innovators from keeping up with those in other fintech hubs, like Singapore and the US.
Currently, fintech firms must go through multiple regulators, with slow approval processes (typically 12-18 months), lagging behind more adaptive approval processes like Singapore’s Monetary Authority of Singapore (MAS).
As part of the government’s Plan for Change, the introduction of the Regulatory Innovation Office is helping make it easier for UK fintech companies to bring new products to market, streamlining regulation and eliminating approval duplication. In 2026, improved testing environments with unified oversight is going to make the UK a far more practical and lucrative environment for fintech firms.
Tighter BNPL checks for users
In 2026, users can also expect tighter controls to be put into place in terms of various buy now, pay later (BNPL) services. Issued by companies like Klarna and Afterpay, these services allow online buyers to split the cost of their purchase into more manageable instalments.
First driven by the younger generation, a recent report shows that use of BNPL services by people aged 55-64 has skyrocketed, with more than double the uptake compared to this time last year. The market’s size has now reached more than £13bn.
However, during 2026, we can expect to see corrective measures aimed at reducing Britons’ reliance on these services. The FCA has announced new verification methods coming into play that could require lenders to execute affordability checks on even the smallest of loans, restricting the number of people eligible for finance.
Security levels increase for users
Fintech adoption is growing, and so is the number of integrated devices available on the market. The growing viability of wearable tech is having a huge impact, with the first payment-method-enabled smart glasses introduced in the UK earlier this year.
However, the advent of new technology means more digital entry points for hackers and bad actors, while many wearables are particularly vulnerable thanks to weak encryption between wearables and mobile devices.
So, expect security methods to tighten, driven in part by the government’s divisive drive to introduce Digital ID Cards. With the expansion of fintech, the user’s digital identity becomes the root of trust: a verified, reusable way for users to prove who they are across multiple financial services.
Expect a growing focus on biometrics and continuous authentication during 2026, as we move away from static authentication methods like scans of passports or drivers’ licenses. We’ll see the advent of faster, reusable verification across platforms, using government-backed credentials.
So, whether you’re a business in the fintech sector or an individual adopter of technology, there are plenty of new developments to be aware of going into the new year.
Photo by Allison Saeng on Unsplash
