Industry TV Recap: 'We Are Going to Be a Bank Killer'

The fintech landscape is shifting rapidly as artificial intelligence and regulatory developments redefine traditional finance. Global revenue for the financial technology sector is expected to reach $1.5 trillion by 2030, driven by AI, blockchain, and financial inclusion initiatives. The transition to agentic AI—systems capable of making autonomous financial decisions—has accelerated in 2026, reducing operational costs for institutions and increasing efficiency.

Regulatory changes are also playing a critical role. In the UK, the Financial Conduct Authority (FCA) is preparing a new crypto licensing framework to take effect in October 2027. Firms must apply for authorization starting in September 2026, ensuring they meet new compliance standards before the regime begins. Ripple's UK subsidiary has received a conditional EMI license, allowing it to operate under the current framework.

The adoption of stablecoins is gaining momentum, particularly in cross-border transactions. The Genius Act, signed into law in 2025, has provided the regulatory clarity necessary for financial institutions to engage with stablecoins more confidently. Major players are exploring stablecoin use for merchant services, with large retailers like Walmart and Amazon reportedly considering their own digital currencies.

Why Did This Happen?

The rise of agentic commerce is reshaping how consumers interact with financial services. AI-powered agents are now capable of making purchases on behalf of users, streamlining the shopping experience. This shift is attracting major tech and payments firms, who are developing platforms to support bot-led transactions. Mastercard's chief digital officer has noted the speed at which agentic commerce is gaining traction, a departure from the typical 10–15 year adoption cycle for new payment technologies.

The growing use of AI in finance has also led to the emergence of the Chief AI Officer (CAIO), a role tasked with managing autonomous financial systems. The American Financial Services Association (AFSA) has emphasized the importance of hybrid models that combine human oversight with machine-driven decision-making. This approach is particularly relevant in credit risk assessment and pricing models, where AI is expected to reshape lending strategies in 2026.

How Did Markets React?

The expansion of stablecoins and the rise of agentic AI have sparked interest in both traditional and digital finance. Financial institutions are increasingly integrating blockchain and AI into their operations to stay competitive. The Financial Technology Association's CEO highlighted the potential for stablecoins to reduce the complexity and cost of cross-border payments. However, challenges remain, including the need for user-friendly interfaces and trust in digital assets.

Regulatory uncertainty has also influenced market behavior. In the U.S., the Consumer Financial Protection Bureau (CFPB) faces uncertainty under the Trump administration, with states stepping in to fill the regulatory gap. California, New York, and other states are expected to take a more active role in overseeing buy now, pay later (BNPL) services and earned wage access programs. This shift in oversight is prompting financial firms to adapt to a more fragmented regulatory environment.

What Are Analysts Watching Next?

Industry experts are closely monitoring how the FCA's new crypto licensing framework will impact market players. The FCA has clarified that firms currently registered under the Money Laundering Regulations (MLRs) will not automatically convert to the new regime. Instead, they must apply for full authorization under the Financial Services and Markets Act (FSMA) by October 2027. Firms that miss the application window may face restrictions on new services.

Another area of focus is the growing emphasis on compliance and risk management in the fintech sector. The Securities and Exchange Board of India has eased regulatory requirements for brokers dealing with technical glitches. The updated framework excludes smaller brokers from stringent norms and simplifies reporting processes. This move aims to reduce operational burdens while maintaining market integrity.

Professional development is also a key priority. The American Fintech Council's "Future of Finance" series is exploring how technology can drive financial inclusion, particularly for underrepresented communities like Latino consumers. These webinars are helping professionals understand the evolving regulatory landscape and the role of fintech in wealth building.

The adoption of AI and blockchain is reshaping the financial landscape, with significant implications for market structure and consumer behavior. As institutions navigate regulatory changes and technological advancements, the ability to adapt will be critical for long-term success.