7 Tech and Regulatory Trends That Will Shape Banks and Payment Service Providers in 2026

1. Growing Importance of AI Agents in Banking

Beyond traditional chatbots, AI agents capable of autonomously executing tasks and orchestrating end-to-end processes are gaining traction. These systems will become increasingly embedded in day-to-day operations, monitoring workflows in real time, detecting anomalies, and taking on more operational activities – including customer interactions. At the same time, the EU AI Act raises the bar for transparency, model governance, and robust controls. Banks must navigate a challenging balance between efficiency gains, customer satisfaction, and regulatory responsibility.

2. Social Engineering Becomes More Precise and Harder to Detect

Generative AI is making fraud schemes significantly more convincing. Phishing, CEO fraud, identity theft, and deepfakes are becoming harder to distinguish from legitimate communication. Meanwhile, international fraud networks are operating with growing specialization and professionalism. Because instant payments leave virtually no reaction time, awareness initiatives, automated fraud monitoring, and strong cooperation with authorities are becoming increasingly critical.

3. Behavioral Biometrics and Hybrid AI Become Standard in Fraud Management

Banks are simultaneously investing heavily in modern detection technologies. Behavioral biometrics – such as analyzing typing patterns or touch gestures – help identify unusual activities more accurately. Widespread adoption is expected in 2026. Complementary hybrid AI models, which combine rule-based expertise with machine-learning techniques, enable fast and well-founded decision-making.

4. European Data Sovereignty Gains Strategic Relevance

Amid geopolitical tensions and recurring data-protection incidents, interest in European infrastructures is rising. Data sovereignty is increasingly seen as a differentiating factor in 2026. Initiatives such as the European Payments Initiative (EPI) and its brand Wero aim to strengthen a European payment solution. Institutions that emphasize transparent data-protection standards and European technology will be able to meet both regulatory expectations and the preferences of many customers.

5. Real-Time Payments Fully Enter Everyday Life

Since 2025, instant payments have been mandatory across the EU – and in 2026, they will be fully established as the norm. Users expect speed, no extra cost, transparency, and constant availability. At the same time, ISO 20022 accelerates data harmonization and unlocks new automation potential. European payments are becoming faster, more connected, and more data-driven.

6. AMLA and the New EU AML Package Increase Pressure to Adapt

With the new EU anti-money laundering framework and the establishment of the Anti-Money Laundering Authority (AMLA), major regulatory changes will take effect in 2026. Many banks will need to overhaul their KYC processes, monitoring systems, and reporting obligations. Expected reimbursement rules for fraud cases will further intensify the pressure. Investments in RegTech, data quality, and staff training will become crucial for building resilient compliance structures.

7. Digital Euro, Cryptocurrencies, and the Future of Money

The digital euro is taking shape: By mid-2026, the regulatory framework is expected to be finalized, potentially enabling initial pilot tests in 2027. Key issues remain – including privacy protections, offline functionality, and the role of banks in distribution. At the same time, crypto is gaining momentum. Neo-brokers have simplified access significantly, and the strong price increases seen in 2025 have further fueled investor interest. Banks are increasingly launching their own digital-asset offerings. Whether cryptocurrencies are heading toward a long-term breakthrough – or whether the trend cools again – remains one of the major open questions for the coming years.

“Amid growing automation, regulatory changes, and an increasingly complex threat landscape, banks and payment service providers face major strategic decisions in 2026,” says Roy Prayikulam, Senior Vice President Risk & Fraud at INFORM. “The institutions that gain an advantage will be those that use technology strategically, further professionalize their compliance structures, and actively engage with European developments.”