2026 FinTech Predictions: Insights from Aaron Holmes of Kani Payments

We spoke with Aaron Holmes, CEO and Founder of Kani Payments, an award-winning UK fintech that helps payments companies automate reconciliation, reporting and operational oversight. Aaron shares his view on the forces reshaping financial services in 2026, from the quiet modernisation of core systems to the practical realities of deploying AI in regulated environments.

Over to you Aaron - my questions are in bold:

What's the biggest shift you expect across financial services in 2026?

The biggest shift in 2026 will be a re-balancing of the financial services model away from growth at any cost and back towards trust, resilience and credibility. Regulation will play a role, but the deeper change is cultural: firms will be expected to demonstrate that their infrastructure, controls and data actually work in practice, not just on paper.

At the same time, we'll see a quiet but decisive modernisation of core systems. Real-time data, continuous monitoring and automation will move from being competitive advantages to basic expectations. Institutions that invest in this foundation will unlock faster innovation and better customer outcomes, while those that don't will find themselves constrained by their own operational fragility.

Which emerging technology will have the most practical impact on banks and the FinTechs that support them?

AI will have the most practical impact, but not in the way many people expect. The real value won't come from flashy front-end use cases, but from how AI reshapes decision-making, risk management and operational insight behind the scenes.

That impact will only materialise if firms approach AI with discipline rather than enthusiasm alone. In regulated environments, accuracy, explainability and auditability matter as much as speed. The organisations that succeed in 2026 will be those that combine AI with strong data foundations, clear governance and a willingness to learn collaboratively across the industry, rather than treating it as a competitive arms race.

What customer behaviours or expectations will most challenge banks and financial service providers?

Customers increasingly expect financial services to be both fast and dependable, without having to choose between the two. They want seamless experiences, real-time visibility and immediate access to their money, but they also expect institutions to protect them from failure, error and misuse.

What makes this challenging is that trust is no longer assumed. Customers are more aware of outages, regulatory breaches and institutional failures, and tolerance for excuses is shrinking. Meeting these expectations will require firms to modernise long-standing systems and to be far more transparent about how money is managed, monitored and safeguarded across the entire financial lifecycle.

What risks or blind spots do you think the industry is underestimating as we move into 2026?

One major blind spot is how fragile many operational frameworks still are beneath the surface. Complexity has accumulated over years of rapid growth, outsourcing and patchwork fixes, and too many firms underestimate how exposed they are when systems are stressed or assumptions break down.

There is also a growing risk of overconfidence around AI. Many organisations underestimate the level of data quality, governance and human oversight required to deploy it safely in critical financial processes. Without addressing those fundamentals, AI risks amplifying existing weaknesses rather than solving them—particularly in areas where errors carry regulatory and reputational consequences.

If you were advising a bank's leadership team today, what strategic priority should they focus on to stay competitive in 2026 and beyond?

I would encourage leadership teams to focus on building resilient, adaptable ecosystems rather than trying to do everything in-house. That means investing in strong partnerships, diversifying suppliers and engaging more deeply with specialist fintechs that solve real operational problems.

There is also an opportunity to look beyond traditional centres and tap into the growing strength of regional innovation hubs, particularly across the UK. These ecosystems often combine deep technical expertise with pragmatic problem-solving, and banks that engage early will benefit from greater agility, broader talent pools and more resilient long-term operating models.

Thank you Aaron! You can connect with Aaron at their LinkedIn Profile and find out more about the company at https://www.kanipayments.com.