Europe's financial technology industry entered 2026 expecting significant changes to payment services, artificial intelligence and digital finance. Instead, several long-awaited regulations remain unfinished, postponed or awaiting implementation.
The situation creates uncertainty for banks, payment providers and financial technology companies investing in new products and compliance systems.
Meanwhile, existing regulations are already transforming how financial institutions process transactions, protect customer information and manage operational risks.
<h3>New Payment Rules Remain On Hold</h3>
European authorities reached a provisional agreement on the Third Payment Services Directive (PSD3) and the accompanying Payment Services Regulation in November 2025.
The reforms aim to strengthen protection against payment fraud, improve access to banking services and increase competition.
Proposed measures include stronger safeguards against impersonation scams, improved bank account verification and easier management of permissions granted to financial applications. However, the package still requires the remaining formal legislative steps before its provisions can take effect.
Many requirements are expected to apply approximately 21 months after publication, potentially pushing implementation into 2028.
Until then, the existing PSD2 framework continues to govern payment services.
<h3>Artificial Intelligence Faces A Revised Timetable</h3>
Financial institutions are also preparing for new requirements affecting artificial intelligence.
Changes introduced in July 2026 postponed certain high-risk obligations under the EU AI Act until December 2027.
These provisions cover applications such as automated creditworthiness assessments, where algorithmic decisions can significantly affect consumers.
However, transparency requirements introduced in August 2026 remain relevant.
Financial companies using customer-facing AI systems must therefore distinguish between obligations already applicable and those scheduled for later implementation.
The postponement provides additional preparation time but does not eliminate the need for proper documentation, risk assessments and oversight.
<h3>Open Finance Plans Encounter Obstacles</h3>
Another uncertain initiative is the Financial Data Access Regulation, commonly known as FiDA.
The proposal seeks to expand regulated financial data sharing beyond traditional banking services.
It could eventually allow customers to share information relating to products such as investments and insurance through authorised providers.
However, negotiations have encountered disagreements over participation by major technology platforms.
Without an agreed implementation schedule, companies face difficulties planning products that depend on the proposed framework.
<h3>Existing Regulations Already Affect Businesses</h3>
While future legislation attracts attention, several established rules are producing practical changes.
Since October 2025, payment providers in the euro area have been required to verify whether a recipient's name matches the account identifier before executing relevant credit transfers.
Instant euro payments have also expanded rapidly. During the first quarter of 2026, instant transfers represented 35.6% of SEPA credit transfer volumes.
The Markets in Crypto-Assets Regulation has introduced authorisation requirements for crypto-asset service providers.
Meanwhile, the Digital Operational Resilience Act, applicable since January 2025, requires financial institutions to strengthen their management of technology risks and external service providers.
<h3>American Digital Finance Faces Uncertainty</h3>
Regulatory delays extend beyond Europe.
In the United States, proposed legislation addressing digital asset markets encountered difficulties in September 2026.
The CLARITY Act failed to secure sufficient Senate support, leaving important questions about cryptocurrency oversight unresolved.
Regulatory agencies have continued developing their own proposals while the broader legislative framework remains uncertain.
The GENIUS Act, which establishes requirements for payment stablecoins, is scheduled to take effect in January 2027.
<h3>What Financial Companies Should Do</h3>
For financial institutions, the immediate challenge is separating confirmed obligations from proposed reforms.
Companies may benefit from prioritising existing requirements while preparing systems that can accommodate future legislation.
Strengthening fraud prevention, improving data security and documenting artificial intelligence processes could help organisations adapt more efficiently.
The regulatory landscape remains complex, but waiting for every proposed law to become final is unlikely to be a practical strategy.
Financial companies that understand their current responsibilities and prepare for foreseeable changes will be better positioned as new rules gradually take effect.
