How Finance Professionals Can Stay Competitive and Compliant in 2026 (4 Trends to Watch)

AI advancements. Client-facing cybersecurity. Fast-changing regulatory requirements. These and other big shifts are changing the way financial services professionals conduct business in 2026. The faster you adapt, the better positioned your organization will be to maintain trust and drive more growth.

Here are four pivotal trends to watch this year—and how to use them to your advantage.

1. AI and Automation Move from Experiment to Everyday

Not long ago, financial institutions were simply testing AI and automation. These tools showed promise for streamlining routine workflows and freeing staff to focus on client-facing priorities.

Today, AI adoption is surging. An astounding 80% of financial firms are making moderate-to-large AI investments, and 72% are focusing on generative AI—nearly double last year’s share.

These tools are no longer limited to mundane tasks. They power complex client onboarding, compliance monitoring, and document research. In some instances, financial institutions are even looking to these tools to unlock new business models and revenue streams.

If you haven’t already turned to AI-powered tools to improve the client experience and drive more growth, now’s the time to start. But you don’t have to overhaul everything at once. Instead, start small and scale throughout the year. Look for ways to streamline repetitive processes like client onboarding and document reviews, and watch for tools with built-in security measures to help support your company’s compliance efforts as you expand your technology stack.

2. Cybersecurity Becomes a Core Client Trust Issue

AI offers numerous benefits to financial professionals, but it does come with a potential downside. For example, Gartner predicts 17% of cyberattacks will involve GenAI technology by 2027. Meanwhile, an astounding 97% of organizations—many of them in the financial services sector—have already reported AI-related security incidents due to weak access controls.

In response, organizations now view cybersecurity as a board-level priority—both to protect client trust and to meet regulatory expectations. Eight in 10 financial services firms now treat cybersecurity as a strategic imperative, and nearly 90% are making moderate to large investments in this area.

It’s not just large global institutions that are prioritizing cybersecurity in client communications. Smaller firms can build trust by using role-based permissions, advanced encryption and clear communication—and let clients know how these features are designed to help protect their financial data.

3. Client Experience Is the Competitive Battleground

It’s not just young working professionals who are now accustomed to seamless digital experiences. More than half of high-net-worth clients—including older investors—want self-service tools and advanced technologies for advice on investing and portfolio management. Yet historically, providing modern digital experiences has taken a back seat to other priorities. Many relationship managers report losing business because they lack the right digital tools to engage clients—even though a 10% increase in digital satisfaction makes clients 15% more likely to promote the business to peers.

The message for 2026 is clear. Banks and wealth managers must meet clients on their terms. Routine tasks like onboarding, document signing and updating account details must be streamlined. In fact, improving these three areas alone can go a long way in boosting client satisfaction, loyalty and referrals.

4. Regulatory Compliance and Data Governance Tighten

While embracing technology will be key in 2026, it’s equally important to understand the regulatory implications it introduces. Compliance standards will continue to change as local, state and federal lawmakers catch up to the latest AI tools and other advancements. That’s tough news in an industry where just a third of large financial institutions currently receive satisfactory ratings across key risk categories. But there is a solution.

To thrive in this landscape, you consider building compliance into every process. That means implementing role-based data access, keeping detailed audit trails and integrating compliance checkpoints directly into client workflows. With regulators tightening rules on AI usage, data privacy and operational resilience, proactive governance is now a growth enabler. Think of it as a confidence booster for expanding services, exploring new markets and adopting new technologies—while helping reduce the risk of costly fines or reputational damage.

Get Ahead of These Trends Now With Tools Built for Finance

The common thread linking these trends? Generic software won’t cut it. Today’s financial services providers need tools built to meet the complex demands of financial institutions. Missing just one step in a complex financial workflow—or even worse, overlooking key compliance considerations—could cost you.

But how do you know which tools will work best for your business? From AI-powered workflows to advanced security capabilities, there are a lot of critical features to watch for. That’s why the Progress ShareFile team put together a robust guide—to demystify the process of selecting the right SaaS app for your financial firm. Read it here: Why Industry-Specific SaaS Is the Smart Play for Financial Firms.