QED Investors has shared its outlook for artificial intelligence and fintech trends expected to shape the sector in 2026.
The venture capital firm is based in Alexandria, Virginia, and focuses primarily on fintech and financial services investments.
QED also backs companies operating across the UK, Europe, Latin America, India, and Southeast Asia.
The firm said its predictions are informed by hands-on involvement with portfolio companies.
QED aims to support steady growth by leveraging the operational experience of its partners.
Its portfolio includes companies such as Klarna, Nubank, Credit Karma, and SoFi.
Co-founder and managing partner Nigel Morris said credit assessment models are evolving rapidly.
Expect the rise of dynamic credit scoring as underwriting models interpret alternative data streams and update borrower risk continuously rather than periodically.
Nigel Morris said.
He added that such systems could particularly benefit gig economy workers and borrowers with limited credit histories.
Bill Cilluffo, partner and head of global early-stage investments, highlighted the accelerating pace of technological change.
AI is allowing things that weren’t possible three years ago, and the pace of that change is staggering.
Bill Cilluffo said.
He said founders are increasingly adept at adopting new tools and adapting quickly.
Chuckie Reddy, partner and head of growth, described 2026 as a year focused on execution.
The year ahead will be about growth execution, profitability, and selective M&A or IPO activity.
Chuckie Reddy said.
He added that the broader macroeconomic environment remains relatively stable.
Amias Gerety, partner and head of US investments, warned that AI competition could compress margins.
VCs are missing the power of competition to drive margins down in the age of AI,” Amias Gerety said.
He argued that early cost savings from automation may not translate into long-term advantages.
Yusuf Özdalga, partner and head of UK and Europe, expects AI valuations to normalise.
AI valuations will increasingly be driven by financial fundamentals rather than hype.
Yusuf Özdalga said.
He cited growing scrutiny on unit economics and inference costs.
Laura Bock, partner in the US, highlighted automation opportunities in accounts payable and receivable.
She said small efficiency gains could materially improve working capital.
Principal Shruti Batra cautioned against overvaluing early AI traction.
The real moat is workflow depth, integrations, and compliance rather than the model itself.
Shruti Batra said.
Principal Cole Lundquist noted shifting interest between vertical and horizontal AI solutions.
He said horizontal platforms attract hype while vertical tools face more cautious demand.
QED said overall investor focus is shifting from speed to durability.
The firm concluded that trust, execution, and operational depth will define fintech winners in 2026.