1. Digital Assets Enter the Financial Mainstream

With regulatory milestones such as the GENIUS Act in the US and MiCA in the EU, stablecoins are steadily becoming mainstream gateways for payments. Their appeal lies in the ability to deliver faster, cheaper and transparent transactions through blockchain. The total market cap of stablecoins touched USD 166 Billion in June 2025, growing more than 45x since December 2019. Monthly trading volumes are averaging USD 1.48 Trillion, underscoring their growing relevance across payment flows and Decentralized Finance (DeFi) protocols and ecosystems.²

This shift is driven by increased automation through smart contracts, reduced processing costs, enhanced security and transparency through immutable records and new payment trails that facilitate near-instant settlement, especially for cross-border payments. Despite the remaining gaps in regulatory consistency across jurisdictions, adoption of stablecoins appear to be a rising trend because of the speed at which settlements are conducted.

2. Tokenization Re-defines Security, Ownership and Efficiency

In crypto, tokenization converts real-world assets, such as commodities, real estate, stocks, art or other valuables into secure digital tokens. This enables fractional ownership, greater liquidity and more secure asset transfer via decentralized networks. With the technological improvements that a blockchain-based model offers, tokenization is finding application in payments, securities, treasury and core banking workflows.

According to a survey, 87 percent of financial institutions are exploring tokenization and tokenized deposits, viewing blockchain-enabled digital versions of traditional assets as a way to improve liquidity and settlement flexibility.3 Tokenized assets are gaining traction because they enable instant movement between institutions and reduce counterparty exposure while still operating within existing models.

The same blockchain-based approach is transforming the cards and payments ecosystem. Tokenization can replace static card numbers with encrypted digital tokens for online, in-app and contactless payment. The process keeps sensitive data off merchant servers and enables frictionless experiences like one-click checkout and recurring billing. The banking sector is moving in this direction, applying tokenization to protect sensitive account numbers and bank details. By converting them into non-sensitive tokens, banks can enhance security, accelerate the rollout of new digital services and simplify compliance with Payment Card Industry Data Security Standard (PCI DSS).

3. Open Finance and Embedded Banking Transform Customer Journeys

Financial services are transforming to become invisible by being integrated with e-commerce, travel, payments and other platforms through Application Programming Interfaces (API). This enables third-party apps to offer loans, insurance, payments and other financial products seamlessly, exactly when customers need them.

In the EU, open banking / finance is driven by the Payment Services Directive 2 (PSD2), which mandates banks to securely share customer data with Third-Party Providers (TPP) to foster competition, innovation and customer choice. In the US, open banking / finance frameworks are developing through a combination of market demand and new rules from the Consumer Financial Protection Bureau (CFPB). While the US has historically lagged behind the EU and the UK, recent rulemaking under the Dodd-Frank Act has accelerated the shift toward mandated, secure data sharing via APIs.

Open finance is expanding to use cases such as personal finance insights, income assessment, sweeping and embedded account-to-account payments, bringing financial interactions closer to the point of need. As participation grows, so do the challenges around API security, consent-driven data portability and the operational risks created by AI-enabled, hyperconnected journeys. Even with these complexities, the trajectory is clear - open finance is laying the groundwork for an invisible financial layer that supports real-time, contextual experiences across sectors.

4. Quantum Computing Accelerates Risk, Fraud and Optimization Capabilities

Quantum computing offers transformative power to solve financial problems previously considered computationally impossible. Banks can run optimization models across millions of variables, price derivatives with far greater accuracy and detect anomalies using quantum machine learning.

Quantum systems can significantly improve fraud detection by analyzing behavioral patterns at scale. They can also elevate Anti-Money Laundering (AML) monitoring by identifying subtle multi-signal correlations.

However, quantum computing introduces a serious concern. The immense computational power of future quantum computers poses a direct threat to cryptographic systems that secure digital communication and financial transactions. This creates an immediate need to adopt Post-Quantum Cryptography (PQC) and explore Quantum Key Distribution (QKD) as new ways to protect information.

5. Responsible AI Becomes a Foundation of Trust

Today, AI systems are shaping decisions that influence credit access, fraud outcomes, financial reporting and risk modelling. As Gen AI and Agentic AI models take on these roles, the exposure landscape for financial institutions expands. Gen AI models draw from public and private data, generate new content, adapt to prompts and behave probabilistically. This introduces governance and legal complexities beyond the scope of traditional model oversight.

At the same time, regulatory expectations are accelerating. Emerging frameworks in the EU, US and Asia increasingly require transparency, documented accountability and fairness in AI-driven outcomes. However, the push for responsible AI is not driven only by compliance. Investors, auditors, customers and other stakeholders now expect AI to operate with the same consistency and control as any critical financial process.

As a result, responsible AI is becoming a foundational requirement for maintaining trust, safeguarding financial integrity and enabling institutions to scale AI with confidence. Meeting this standard requires strengthened data governance, oversight across the model lifecycle and controls tailored to AI’s rising complexity. As Agentic AI systems begin to autonomously interact with customers and internal processes, the need for clarity, traceability and human judgment becomes even more central.

Responsible AI, therefore, moves from a technical requirement to an enterprise discipline, one that defines whether AI accelerates value or amplifies risk.

Navigating the Future with Purpose, Intelligence and Trust

The trends shaping 2026 and beyond mark a structural evolution in global financial services. AI is becoming more cognitive and emotionally aware. Assets and money are becoming tokenized. Financial data is becoming interoperable. Security is preparing for a quantum age. Governance is shifting from optional to essential. These forces are re-defining how financial institutions operate, compete and engage customers.

Success in this environment will depend on an institution’s ability to balance innovation with responsibility, leveraging emerging technologies while embedding trust, transparency and resilience into every decision and interaction. Financial services that modernize their architectures, strengthen governance and embrace ecosystem partnerships will be best positioned to thrive in a landscape defined by intelligence, speed and personalization.

The opportunity ahead is significant, but it requires decisive action. The institutions that move now, guided by deep domain insight and responsible innovation, will not only adapt to the future of financial services but also help shape it.

Leverage WNS’ expertise across banking, credit, mortgages, capital markets, fraud prevention and more. Combined with Capgemini’s advisory, consulting and engineering power, we drive transformation at speed. Talk to our experts to explore how your organization can stay ahead of emerging technology trends.