Discover This Month’s Must-Read Finance Stories | World Economic Forum
Financial and Monetary Systems | Emerging Trends for 2026, and Other Finance News to Know
Published: February 23, 2026 | Updated: March 5, 2026
By Rebecca Geldard, Senior Writer, Forum Stories & Spencer Feingold, Lead Editor, World Economic Forum
As 2026 unfolds, the global financial landscape continues to grapple with challenges and opportunities shaped by technological innovation, shifting capital flows, and geopolitical dynamics. The World Economic Forum’s latest roundup highlights the most significant developments and emerging trends in finance that professionals and observers need to know this month.
Global Economy and Financial Outlook
The global economy in early 2026 is navigating familiar headwinds. According to the United Nations’ latest outlook, global growth is projected at approximately 2.7%, remaining below pre-pandemic levels. The World Economic Forum’s Global Risks Report 2026 characterizes the current period as an “age of competition,” dominated by geopolitical tensions and fragmented capital flows.
At the recent Annual Meeting 2026 in Davos, economic leaders, policymakers, and industry experts convened to discuss the future of economic growth and finance. Central themes included enhancing operational resilience within financial institutions and unlocking new productivity levers to thrive in a complex economic environment.
Two particularly notable trends exemplify how businesses are adapting:
1. A New Era of AI-Driven Decision-Making in Banking
In 2026, the banking sector is accelerating its transition from using artificial intelligence (AI) as a tool for assistance toward granting it transactional authority. No longer confined to summarizing information, AI systems are now evolving into semi-autonomous "digital co-workers" that perform routine tasks such as trade settlement and compliance management under human supervision.
For example, Goldman Sachs is harnessing Anthropic’s Claude AI model to develop autonomous agents responsible for trade accounting and client onboarding functions. These AI agents aim to reduce time-intensive, process-heavy tasks and improve efficiency.
Similarly, Lloyds Banking Group plans to implement enterprise-wide deployment of agentic AI throughout its financial services operations this year. The bank anticipates these systems will generate ÂŁ100 million in value by automating fraud investigations and handling complex customer complaints. By delegating routine cases to AI, human staff can focus on more nuanced client issues.
As the scope of AI use expands, financial regulators are actively evaluating potential long-term impacts on markets and firms. The Basel Committee and other regulatory bodies are monitoring the balance between innovation and risk management to ensure system-wide stability.
2. Private Credit’s Rapid $41 Trillion Expansion
Traditional bank lending remains constrained by tighter capital requirements, pushing corporate borrowers increasingly toward private credit sources. Private credit now reshapes a $41 trillion addressable credit market, with private funds forecasted to capture up to 15% of lending volumes previously dominated by banks, as public and private credit markets converge.
According to Evercore’s 2025/2026 market data, secondary market trades—where investors buy and sell stakes in private deals—hit a record $226 billion in volume last year. This surge reflects a strong demand for liquidity among limited partners amid a subdued Initial Public Offering (IPO) environment.
Regulators are paying close attention to the increasing connections between banks and private funds. The Basel Committee recently emphasized the need for ongoing supervision of "significant risk transfers" (SRTs)—arrangements where banks transfer loan risks to private funds. Overreliance on these transfers could potentially undermine the resilience of the banking sector if risk-bearing capacity falters.
3. Additional Finance News Highlights
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US IPO Market Cautious: Volatility and stricter valuation criteria have led several firms, including Clear Street and Brazilian fintech Agibank, to delay or scale back initial public offerings, reflecting broader market caution.
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EU Sustainable Finance Disclosure Regulation Under Scrutiny: A recent study finds the regulation, in place since 2021, has had minimal impact on improving the environmental profile of investment funds or redirecting capital toward greener options. This raises ongoing concerns about greenwashing and the effectiveness of ESG (Environmental, Social, and Governance) labeling.
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Historic Acquisition in Asset Management: Schroders, a venerable British firm managing over £800 billion in assets, is set to be acquired by Nuveen for £9.9 billion ($13.5 billion). The transaction marks the end of Schroders’ 222 years of independence as its founding family prepares to exit.
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US Software Stocks and AI Concerns: Anxiety over AI-related disruption has contributed to recent declines in US software stock prices. However, analysts from JP Morgan and Morgan Stanley see buying opportunities in firms with higher-quality, AI-resilient business models.
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Stablecoins Gain Ground in Africa: Nigeria and South Africa’s leading economies are fueling a rapid increase in stablecoin adoption. Companies are using digital dollars to hedge against local currency depreciation and facilitate cross-border trade amid persistent dollar shortages. This trend highlights stablecoins’ rising importance as reliable units of account and payment tools.
4. Explore More on Forum Stories
Technology and finance continue to intertwine at a rapid pace. From AI advancements in banking to the expanding role of stablecoins, these changes underscore the need for robust and interoperable financial infrastructure that enables global commerce to operate quickly, securely, and intelligently.
The evolving role of central banks also remains a focal point, as these institutions balance price stability, independence, and credibility amid geopolitical tensions, market fragmentation, and rapid technological shifts.
Stablecoins, once niche instruments, are now emerging as prominent tools for financial inclusion. They support faster cross-border payments, empower small businesses, and improve humanitarian aid delivery. Collaboration and integration with existing financial systems are vital to unlocking their potential in building resilient global financial networks.
Recommended Reading on Forum Stories:
- A digital economy at an inflection point: What to expect for digital assets in 2026
- How technology can help bank Africa’s informal economy
Stay Informed
For those interested in continual updates, the World Economic Forum offers weekly curated insights through its Forum Stories newsletter, covering the critical global issues shaping finance and monetary systems.
To learn more about the World Economic Forum’s initiatives in finance, visit the Centre for Financial and Monetary Systems.
The views expressed herein are those of the authors and do not necessarily reflect the official position of the World Economic Forum.
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