Research

2026 Financial Services Industry Outlook

Key trends shaping financial services in 2026

November 18, 2025

Financial Services Trends in 2026

Digital platforms redefine the banking model
Banks are shifting from digitizing legacy products to becoming API-first, AI-driven platforms that use real-time data and ecosystem partnerships to create connected, personalized growth.
Mid-market banks face their day of reckoning in M&A
Scale, tech readiness, and a brief deregulatory window are splitting institutions into acquirers and targets—modernize now or be defined by someone else’s strategy.
Private credit becomes the growth engine banks can’t ignore
Alternative lenders’ speed and AI-powered underwriting are pulling ahead, pushing banks to compete, collaborate, or adopt hybrid models that turn relationships into relationship intelligence.
AI pressure and profit squeeze ignite the race to modernize bank data
Legacy silos are blocking value; modern data architectures unlock predictive analytics, faster decisions, and durable moats in the AI era.
Automated compliance becomes a catalyst for trust and growth
Real-time monitoring and automated reporting turn regulation into advantage as banks with regulatory-ready frameworks integrate new rules without slowing operations.

The Year Banks Can’t Ignore Reinvention

“The banking sector enters 2026 amid accelerating change. Economic headwinds, regulatory shifts, and rising fintech competition are testing the limits of traditional models. But opportunity to reinvent is everywhere. The banks that thrive will be those bold enough to reimagine themselves as technology platforms, not just financial institutions.

This isn’t another cycle of incremental upgrades. It’s a reset: building modern architectures, intelligent workflows, and a workforce fluent in both risk and innovation. The institutions that act boldly and quickly will define the next era of banking.”

Brett Mastalli

Senior Partner, Financial Services