What is embedded finance and why does it matter in the UK?

Embedded finance means putting payments, lending, insurance, or savings inside everyday software. In the UK, Open Banking and Faster Payments make this easier and cheaper to deliver. Users get fewer handoffs and faster settlement, while platforms keep more economics. This often improves conversion, loyalty, and cash flow resilience.

How does agentic AI reduce fraud without hurting conversion?

Agentic AI monitors signals like device, behaviour, and payment history to learn normal customer patterns. It flags risky actions in real time and asks for extra checks only when needed. That cuts false positives at checkout. The result is fewer losses, fewer declines, and a smoother experience for genuine customers.

What metrics should investors track to assess fintech innovation?

Focus on approval rates, fraud losses as a percent of volume, dispute rates, and net revenue take rate. Also track onboarding time, support resolution time, and customer churn. Rising automation with steady or better risk outcomes is a strong signal. Transparent governance and model audits reduce regulatory and reputational risk.

How will real-time payments affect UK merchants by 2026?

Real-time payments can lower acceptance costs, speed settlement, and reduce chargebacks. Pay-by-bank and Variable Recurring Payments can streamline subscriptions and bill pay. Merchants with strong fraud controls will keep more revenue and hold less working capital. Those who integrate these flows into software will likely see higher conversion and repeat use.

Global Market Insights

February 10: AI and Embedded Finance Speed Fintech Innovation

ByDanny Kontos February 10, 2026February 10, 2026

Fintech innovation is moving faster in the UK as banks and platforms adopt agentic AI, embedded finance, and real-time payments. From 2025 to 2026, we expect material gains in cost, fraud control, and customer conversion. UK Open Banking and Faster Payments make this shift practical at scale. For investors, the most attractive opportunities link software workflows with payment, lending, and treasury features under strong data governance. We outline where value accrues and what risks to monitor.