After several volatile years, F-Prime’s 2026 State of Fintech report shows fintech has entered a more disciplined phase defined by improving fundamentals, selective growth, and renewed institutional relevance. At the same time, artificial intelligence (AI) and digital assets are reshaping how financial services will compete over the next decade — even as banks adopt these capabilities more cautiously than other industries.

For retail banking leaders, the implications are practical rather than theoretical. Competitive pressure is shifting from venture-funded disruption to operational execution: profitable growth, embedded finance partnerships, faster payments infrastructure, and AI-enabled productivity. 

The next wave of advantage will come less from launching new digital channels and more from redesigning decisioning, servicing, and payments around automation, data accessibility, and programmable money movement. At Spinwheel, we see tremendous opportunity for banks and financial innovators to leverage AI and data to streamline workflows, reduce friction, and make smarter decisions. 

Here’s a few key takeaways from F-Prime’s report:

1. AI Adoption: Slow Start, Large Impact

Despite being the world’s largest industry by economic output, financial services trails most sectors in scaled AI deployment. Why? Because banking systems rely heavily on proprietary cores, sensitive customer data, strict regulatory oversight, and workflows where small errors carry significant consequences. These constraints slow experimentation compared with industries such as software or retail. Rightfully so, financial providers need to ensure any AI use cases come with strong data fidelity and controls to protect consumers and their businesses. 

The report suggests one of the most meaningful AI opportunities in banking is workflow automation. Agentic systems can help loan officers, servicing agents, compliance teams, and financial advisors reduce the time and energy spent on labor-heavy processes. This can include: 

• Faster credit decisioning

• Reduced servicing costs

• Improved marketing personalization

• Automated operational reconciliation

Institutions that treat AI as infrastructure rather than experimentation are likely to see the earliest measurable returns.

This is where Spinwheel plays. (Note: F-Prime is an investor in Spinwheel.) We use cutting-edge AI and technology innovations to redefine what it means to connect, verify, and act on consumer credit — instantly.

With just a phone number and date of birth, Spinwheel enables financial innovators to securely verify, understand, and act on consumer-permissioned credit in real time with our developer-friendly APIs and agentic AI platform. 

2. The Evolution of Stablecoins and Tokenization 

One of the report’s clearest signals is the normalization of crypto within mainstream financial services. Stablecoins surpassed $1 trillion in monthly transaction volume during 2025, supported increasingly by commercial activity rather than trading speculation. 

Banks are showing particular interest not in issuing their own digital currencies immediately, but in holding reserve assets and delivering custodial or wallet services. For retail banking leaders, the strategic question is operational: where can programmable money improve customer outcomes?

Cross-border remittances, treasury movement, marketplace payouts, and small-business payments represent early areas where settlement speed directly affects customer satisfaction and liquidity management.

3. Competitive Battleground Shifts Toward Efficiency 

The report frames fintech evolution as part of a broader technology cycle occurring roughly every decade — from mainframes to cloud to APIs, and now to AI-driven systems.

The building blocks for digital financial services already exist. Payments infrastructure, data platforms, lending engines, and digital onboarding capabilities are largely in place. This emerging phase of innovation connects these systems through intelligent automation capable of executing financial workflows end-to-end.

For retail banks, success increasingly depends less on launching new products and more on how efficiently existing products operate. Decision speed, operational cost structure, and payment flexibility are becoming primary differentiators.

The next era of competition will reward institutions that convert technology investments into measurable productivity gains.