The NEACH and NPG teams identified several key priorities for financial institutions (FIs) and FinTechs in Part 1 [Link to Part 1] of their 2026 predictions, emphasizing the need to stay ahead of regulatory changes, invest in technology to enhance payment security, and prioritize education to navigate the evolving financial landscape. We also highlighted the importance of monitoring emerging trends in fraud monitoring rules, developing digital and fraud tools, and exploring AI implementation and the development of stablecoins as viable payment options.
In Part 2, we answer the question: What should we do about it?
Again, responses are coming from NEACH President & CEO, Sean Carter, AAP, APRP; Senior Vice President, Chief Growth and Partnerships Officer Elyssa Morgan, AAP, APRP; NEACH Payments Group (NPG) Vice President and Subsidiary Director Caitlyn Mullins-Smith, AAP, APRP, NCP; and me.
If you had a crystal ball, what would be the top area you'd advise FIs to focus on in 2026? Why? And what about FinTechs and providers—where should they concentrate on, if different from FIs?
Carter: FIs should explore FinTech partnerships to enhance their fraud monitoring efforts and implement effective AI solutions. I believe financial institutions must continue supporting account holders in fighting fraud. I also think adopting AI in banking operations is inevitable because it makes perfect sense. It’s a great fit for fraud detection, daily exception reviews, and even tasks like regular assessments of cash management clients and their payment activities.
Morgan: If I had to choose one area for FIs to focus on in 2026, it would be clarifying their institution’s direction during a year of rapid change. I would also suggest building partnerships to help them reach their goals. Institutions that prioritize collaboration and incorporate it into their strategy will be best positioned to successfully navigate ongoing change and challenges.
FinTechs and service providers could benefit from understanding the institutions they serve and by building collaborative, mutually beneficial relationships that help both sides grow. When FinTechs, providers, and financial institutions partner intentionally, they not only level the playing field but also unlock opportunities they couldn’t access on their own.
Mullins-Smith: If I had a crystal ball, I would tell financial institutions to prioritize three interconnected areas—fraud prevention, a digital banking strategy, and growth of non-interest income. These priorities address both risk and opportunity.
Risk-based fraud detection, including behavioral analytics and customer education, should remain a top priority to build trust and safeguard consumers. Additionally, consumers expect seamless, personalized digital experiences. To meet this demand, financial institutions should consider upgrading mobile platforms, integrating AI-powered tools, and providing value-added services to stay competitive. With ongoing margin pressures, FIs also need to diversify revenue streams through embedded finance, value-added services, and partnerships that deliver convenience and innovation. Institutions that act now will position themselves as leaders in a rapidly changing payments ecosystem.
Casali: As the landscape continues to shift, it's important for FIs to adopt strong controls and best practices in engaging with vendor partners. These measures are vital for working effectively and utilizing robust security and compliance. Additionally, as the regulatory landscape surrounding digital assets and stablecoins continues to develop, FIs must stay vigilant and adaptable to maintain compliance. This involves keeping up with new developments and putting processes and practices in place to ensure compliance in a rapidly changing regulatory environment.
What advice would you give FIs as they plan their 2026 payments strategies? Why? And what about FinTechs, if it differs from FIs?
Carter: Any payments strategy must account for the FI’s technical debt and how FinTechs can help address operational gaps. I also anticipate more discussion of payments hubs as more FIs collaborate with FinTechs.
Morgan: 2026 will mark a crucial shift as financial institutions move from viewing payments as a back-office task to a key growth opportunity. By creating effective payments strategies, financial institutions can open new revenue streams, such as expanding treasury management services to provide more value to business clients and beyond. Innovative models need careful risk management, but they can also create important differentiation in a competitive market.
As FIs embrace payments as a strategic growth driver, it’s equally important for their FinTech partners to fulfill their responsibilities to FIs and the networks they operate within. This means they must stay current on rules, understand their obligations, and operate with the same rigor as financial institutions. Doing this well makes it easier for FIs to feel confident entering into these partnerships.
Mullins-Smith: Financial institutions should develop cross-departmental payment strategies. As change accelerates, they must ensure all departments—operations, compliance, risk, and customer experience—are aligned with innovation, compliance efforts, and monitoring protocols.
FinTechs would benefit from a focus on establishing a solid BSA/AML program. Regulatory scrutiny is increasing around faster payments, digital assets, and third-party risks, requiring ongoing industry education. Emphasize compliance-first solutions and ensure compatibility with existing financial systems. Maintaining transparency and prioritizing consumer protection will help build trust and prepare for long-term partnerships with FIs.
Again, those who prepare now by aligning strategy, compliance, and customer experience will lead in adoption and growth.
Casali: My advice would be to prepare for the inevitable and create robust risk and compliance frameworks that begin to address future of payments. The interest in stablecoins by financial institutions points toward the potential for rapid and widespread institutional adoption of digital assets. Still, I expect at least one major “crypto nightmare”—such as a loss of millions of dollars—highlighting ongoing vulnerabilities in the sector. Additionally, I anticipate that faster payment systems and adoption will expand. And as I said before, fraud will continue as “bad actors” adapt to new payment methods. Establishing a firm foundation and framework for payments of the future will support FIs in protecting themselves as these new payments gain traction.
What do you think the future will hold for FIs and FinTechs?
Carter: Looking ahead, I believe we will be discussing the implications of the changes to the National Settlement Service (NSS) windows for ACH. We will also be examining how stablecoins could affect traditional point-of-sale transactions. Additionally, we will be reviewing feedback and insights from the Fed’s 2025 Fraud Survey to try and get a handle on where fraud has been and where it is heading so we can address it accordingly.
Morgan: The future will hold more on regulatory compliance, stablecoins, AI, and fraud because they continue to evolve. AI, especially, will likely be used in ways we can’t even imagine right now, and fraud will remain a constant challenge. Regulations will continue to shift, and the impacts and developments of stablecoins will continue to progress. It's about leveraging opportunities while managing risks. I believe it involves having a plan, staying ahead of industry trends, anticipating threats, developing contingency strategies, and being prepared to pivot as circumstances evolve.
Mullins-Smith: Looking ahead, I expect AI-driven compliance tools to be the standard. I also anticipate seeing stablecoin pilots in regulated environments and fraud trends prompting new authentication standards. Finally, I expect an increase in instant payments use cases and consumer demand. These developments align with current innovation paths and regulatory priorities.
Casali: The payments landscape includes many channels, such as checks, wire, ACH, cards, and stablecoins, making it exponentially more challenging to be a payments expert. The rise of various payment methods and their updates has increased the field's complexity and the need for ongoing education. There is also a growing trend toward automation in payments hubs, as systems will automatically select the shift from the payment method itself to the information associated with the transaction. Community engagement and education, especially around fraud mitigation and compliance, will remain vital components of success.
What other considerations should FIs keep in mind for the new year?
Carter: I expect mergers and acquisitions to continue. If the regulatory environment becomes more supportive of M&A activity, it could encourage larger FIs to form new partnerships or consolidate. If this happens, local FIs will need to consider how to capitalize on opportunities arising from these changes. This will require them to assess what resources and strategies they need to put in place to succeed in a continually evolving payments landscape.
Morgan: In 2026, we will see increased focus on interoperability among payment systems, the increased adoption of ISO 20022 for richer data, and the continuing rise of embedded finance. These changes will present new opportunities and challenges in cybersecurity, resilience, and customer/member experience. Organizations that prepare for these shifts now will be better equipped to compete.
Mullins-Smith: I agree and would just add that there will be an emphasis on collaboration across financial institutions, FinTechs, and regulators to ensure that innovation does not outpace security and compliance.
In summary
The NEACH/NPG teams agree that financial institutions (FIs) should focus on collaboration, innovation, and strategic planning to succeed in the coming year. We also emphasized the importance of helping account holders fight fraud and integrating AI into banking operations. The teams pointed to the need for partnerships with FinTechs and industry groups to provide advanced services and help smaller institutions compete as another key area. Additionally, prioritizing fraud prevention, digital banking strategies, and diversifying revenue streams is crucial. Overall, the consensus is that collaboration, innovation, and strategic planning are essential for FIs to successfully navigate the evolving financial landscape.
In 2026, members can continue to rely on NEACH as their strategic partner. In the weeks and months ahead, we will roll out new educational programs and resources to help you acquire the knowledge and tools needed to succeed in today’s rapidly evolving payments landscape. To that point, don’t miss the following NEACH sessions:
Together, we will make 2026 our best year yet!