Rises in regulatory change
Regulatory evolution will accelerate in 2026, reflecting technological innovation, new business models, and global economic shifts. Firms will face complex, overlapping frameworks that demand agility, foresight, and strategic planning. Those that embrace regulatory change as an opportunity to innovate and strengthen governance will gain resilience and a competitive edge.
Adam Parkinson
As 2026 begins, financial institutions operating in the EU payments space are facing transformative regulatory change. The forthcoming Payments Services Regulation (PSR) and updated Payments Services Directive (PSD3) are set to be formally adopted by the end of 2025, triggering an 18-month transposition window. This makes next year critical for preparation in multiple areas of compliance.
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Fraud prevention and reimbursement will demand immediate attention. The new regime mandates reimbursement for impersonation scams. This is a focused but significant expansion of consumer protection that will require firms to reassess their fraud detection infrastructure, customer authentication protocols and provisioning for potential liabilities.
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Even more striking is the European Parliament's push to bring social media and telecommunications platforms within the fraud accountability framework, holding these entities liable for scams originating on their services. If this provision survives the final negotiations, 2026 could see the emergence of new cross-sector partnerships and information-sharing arrangements that reshape practical approaches to fraud prevention.
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Open banking will continue its evolution under the updated framework, with enhanced data-sharing requirements and strengthened consumer rights relating to payment initiation and account information services. Organisations should use 2026 to refine their API infrastructure, ensure robust consent management systems and prepare for increased competitive pressure as open banking adoption increases.
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Market access and competition represent another critical dimension. By granting non-bank financial institutions enhanced access to payments infrastructure, regulators are aiming to level the playing field and accelerate digital transformation. Incumbent banks should use 2026 to fortify their value propositions and operational agility, whereas fintechs must scale their compliance capabilities to match expanded opportunities. Financial inclusion objectives woven throughout the framework will require firms to evaluate how their products and processes serve underbanked populations, ensuring accessibility is not a compliance afterthought.
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Finally, the PSR's status as a directly applicable regulation promises greater harmonisation across member states, allowing multi-jurisdictional operators to streamline compliance frameworks throughout 2026. The window for proactive preparation is now. Organisations that treat next year as a strategic planning and capability-building period will be able to navigate implementation far more smoothly than those caught reacting when deadlines crystallise.
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The window for proactive preparation is now. Organisations that treat next year as a strategic planning and capability-building period will be able to navigate implementation far more smoothly than those caught reacting when deadlines crystallise.