Why Fintech's Investment Rebound Creates CFO Opportunities

The finance sector is entering 2026 with renewed momentum that could reshape strategic financial decision-making for major corporations, according to analysis from global law firm Taylor Wessing.

For Chief Financial Officers (CFOs) navigating digital transformation and seeking competitive advantage, the combination of regulatory clarity and innovation presents both opportunities and risks.

Verena Ritter-Döring and Miroslav Đurić, regulatory specialists at Taylor Wessing, argue that high levels of innovation and positive regulatory developments position the industry for significant growth. This environment means CFOs must reassess their approach to fintech partnerships, infrastructure investments and emerging payment technologies.

The report highlights AI and crypto-assets as key subjects, noting that renewed optimism in cryptocurrency has been sparked by a radical shift in the approach to regulation of crypto-assets in the US.

Growing interest from incumbent financial institutions in stablecoin adoption serves as another catalyst for this resurgence.

"The industry is moving into 2026 with a reasonably high level of optimism on several fronts: from the increasing regulatory clarity on some fronts and more positive funding environment (at least for some) to pending finalisation of some key regulatory initiatives that shall open the doors for further innovation in some novelty areas," Verena and Miroslav write in the report.

Investment scrutiny reshapes sector dynamics

Despite investor confidence being shaken in January 2025, the fintech industry in Europe completed the year with an overall 7% year-on-year increase in capital invested, according to Taylor Wessing, with the UK being a particularly strong sector. Global investment in fintech rebounded by more than one-fifth in 2024, taking total investment to $53bn (£42bn), according to data from Innovate Finance.

The shift in investor focus towards profitability rather than growth at any cost could mean increased consolidation across the fintech landscape in 2026. For CFOs, this changing dynamic presents strategic opportunities to negotiate more favourable terms with fintech vendors or identify acquisition targets that have matured beyond the high-valuation hype phase.

Verena and Miroslav argue that the payments sector will continue to be a "darling" of venture capital investors due to increased competition amongst incumbent institutions, fintech scale-ups that are yet to prove their valuations and new entrants.

Pending regulatory reform in the European Union, combined with the increasing number of providers looking to leverage innovative technology for payment purposes, from stablecoins to agentic AI, will be the primary catalysts for this.

The maturing crypto ecosystem in the EU is also expected to serve as a fertile breeding ground for the growth of European fintechs operating in the crypto sectors, extending beyond the regulatory perimeter of the EU Markets in Crypto-Assets (MiCA) Regulation. This regulatory framework, which came into full effect in December 2024, provides comprehensive rules for crypto-asset issuers and service providers across member states.

The convergence of traditional finance and decentralised finance continues to accelerate, with major financial institutions exploring blockchain-based settlement systems and tokenised assets as part of their infrastructure modernisation strategies.

Financial infrastructure becomes a strategic priority

Financial infrastructure is expected to become a major focus in 2026 as it serves as the foundation that ensures the timely provision of financial information, while AI and open finance remain on the agenda. This includes application programming interfaces (APIs) and cloud infrastructure, which are major areas of focus for communications service providers (CSPs).

CSPs and other technology providers are subject to different regulations, which allows them to participate in helping fintechs but without some of the barriers fintechs themselves face.

This regulatory advantage could lead to investor interest in technology providers like CSPs, even though they do not themselves provide financial services in most cases.

For CFOs evaluating technology partnerships, understanding these regulatory distinctions could prove crucial when building resilient financial infrastructure that supports both current operations and future innovation. The increasing complexity of financial ecosystems means that infrastructure decisions made today will have long-term implications for operational efficiency and competitive positioning.

Finance leaders must also consider data sovereignty requirements and cross-border data flow regulations when selecting infrastructure partners, particularly as regulators intensify scrutiny of third-party technology dependencies in financial services.

Regulatory landscape demands careful navigation

Regarding AI, Taylor Wessing urges more caution for those in the fintech sector than in some other businesses. It acknowledge that the technology remains a key topic, but says that the outcome of the application of AI systems is less predictable than a year ago.

While agentic AI shows promise, regulatory constraints are yet to be tested. This uncertainty suggests that CFOs should adopt measured approaches to AI implementation in financial operations, balancing innovation ambitions against regulatory compliance risks and reputational considerations.

Fintech Scotland reported in November 2024 that the nation's fintech cluster has more than doubled in size since 2021, while fintech dominated the Turkish startup ecosystem in 2024, demonstrating the global nature of opportunities available to financial leaders seeking strategic partnerships beyond traditional markets.

These regional fintech hubs offer CFOs access to specialised talent pools and innovative solutions that may not be available in more established markets.

The regulatory landscape continues to evolve rapidly, with jurisdictions competing to attract fintech investment through balanced frameworks that promote innovation whilst protecting consumers and maintaining financial stability.