Global Cybersecurity
Top five trends for 2026
The right responses will include reinforcing controls with next-level AI-enabled defenses that strengthen resilience, robustly risk managing complex ecosystems of vendors, and integrating security intelligence across the enterprise. As threats continue to evolve, five key trends will shape the cybersecurity agenda through 2026.
From the rise of automated and agentic AI threats to the imminent challenge of quantum computing, a series of emerging threats are exposing fresh vulnerabilities in financial services. With regulatory patience for slow responses and inadequate cybersecurity running out, and traditional perimeter defenses no longer regarded as adequate, the narrative is shifting from "how well are you preparing?" to "show us you are ready."
Historically, regulatory bodies often played catch-up with the industry in terms of issuing and enforcing technology-related guidelines and regulations. However, the urgency around security controls has evolved in recent years, and through 2026 regulators are anticipated to continue pivoting towards more rapid and active enforcement. Institutions will be required to demonstrate tangible progress and sustainability – through embedding robust security processes across their operating models – instead of just strategies or plans.
It is no longer enough to show that controls exist. Their effects should be measurable, and controls must be responsive to evolving threats. This scrutiny is particularly intense regarding emerging technologies. For instance, regulators are now integrating AI governance directly into model risk management requirements.1
Furthermore, pressure is mounting to demonstrate readiness for future threats, such as those that will appear as a result of quantum computing.2 NIST’s guidelines for post quantum computing include having an inventory of cryptographic assets such as keys and certificates, a clear understanding of gaps and vulnerabilities, and readiness to demonstrate progress in implementing new recommendations and technologies for remediation.
For 2026, the message to the C-suite is clear. Compliance is no longer a check-box exercise, but a continuous demonstration of operational control effectiveness.
Compliance – the shift towards more active enforcement
For 2026, the message to the C-suite is clear. Compliance is no longer a check-box exercise, but a continuous demonstration of operational control effectiveness.
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AI vs AI – the speed of defense
The only way to withstand these AI-powered threats is to deploy AI-enabled defenses.
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In 2026, artificial intelligence will redefine the cybersecurity battlefield. AI acts as an attack multiplier, amplifying threat vectors that were previously difficult to execute and lowering the barrier to entry for malicious actors. This includes a proliferation of ‘adversarial generative AI’, including deep fakes and sophisticated impersonation tactics that bypass traditional verification methods.
The only way to withstand these AI-powered threats is to deploy AI-enabled defenses. Human analysts, no matter how skilled, can no longer keep pace with the volume and speed of automated attacks. Financial institutions must augment their teams with machine-speed detection and response capabilities.
However, this transition introduces its own risks. Safely deploying AI as part of an institution’s ecosystem will require new controls and guardrails. Institutions need to address the skills gap within their teams and conduct appropriate change management to support AI adoption.
The priority for the coming year is to adapt operational teams so they can work effectively alongside AI agents, within an environment governed by robust policies that define exactly what these powerful tools can and cannot do.
The traditional network perimeter is dead. In its place, zero trust has evolved from a buzzword into a non-negotiable industry expectation. No longer simply a technology implementation, zero trust is now a fundamental mindset in which an organization never trusts anything, or anyone, implicitly.
A key focus within this architecture is ‘Identity’, which is now the de facto perimeter for modern enterprises. We predict that 2026 will see a continued push for robust multi-factor authentication (MFA) and identity access management (IAM). Once again, regulators are asking pointed questions as they move from "what is your zero trust strategy?" to "why is this not fully implemented?”
The risks extend beyond the workforce to the customer. We are seeing the need for stronger controls around customer identity – such as adaptive authentication enabled by behavioral analytics and device intelligence – to help protect customers from fraud and account takeovers. Financial institutions must treat every access request, whether from an employee, a bot or a customer, with the same rigorous skepticism.
Zero trust – identity as the new perimeter
The traditional network perimeter is dead. In its place, zero trust has evolved from a buzzword into a non-negotiable industry expectation.
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In 2026, third-party vendors are effectively part of an institution’s internal ecosystem – and their risks are its risks.
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The definition of the ‘organization’ has expanded. In 2026, third-party vendors are effectively part of an institution’s internal ecosystem – and their risks are its risks. World-class internal security can still be breached through a vendor running outdated software.
The reliance on major cloud providers means that a failure in a single third party could have a systemic impact across multiple financial institutions. Regulators view vendor failure as a failure of the bank itself, requiring institutions to apply the same rigorous controls to their suppliers as they do to their own infrastructure.
Capco’s vision for 2026 is one of adaptive, integrated and sustainable security for a world where security is not a static wall, but an intelligent, data-driven ecosystem.
While the landscape is daunting, with rapidly evolving technology being leveraged by numerous threats, there is reason for optimism. Awareness of the evolving cybersecurity threat has never been higher, and the tools available to defenders have never been more powerful.
However, success will depend on execution. Whether securing the supply chain against the quantum threat or using behavioral analytics to catch insider fraud, the task for business leaders is clear. With threats accelerating and regulators closing in, execution rather than intent will define cybersecurity leadership in 2026.
Conclusion – ready for the future
© Capco 2026, A Wipro Company
As we enter 2026, the convergence of cybersecurity and financial crime continues to evolve. Due to the introduction of AI-infused techniques, new tactics are emerging on both sides of the equation.
Organizations are now seeing the value of integrating data from Security Information and Event Management (SIEM) systems and other logging and monitoring tools, with data from fraud and anti-money laundering (AML) controls. This integration allows for powerful behavioral analytics that can ‘connect the dots’ between user patterns and financial crime events.
This convergence is particularly effective against insider threats, a risk area where cyber and fraud indicators often overlap. Regulators are beginning to enforce this holistic view and expect institutions to detect patterns across branches, users, and systems. By breaking down these silos, CISOs and financial crime leaders can build a unified defense that is smarter, faster and more cost-effective.
Convergence – breaking the silos of cyber and financial crime
By breaking down these silos, CISOs and financial crime leaders can build a unified defense that is smarter, faster and more cost-effective.
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Ecosystem risk – supply chain and future-proofing
Originally published in AltEnergyMag.com
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Originally published in Financial Advisor
Ridha Mesli
US Cybersecurity lead ridha.mesli@capco.com
James Musgrave
Canada Cybersecurity lead james.musgrave@capco.com
With threats accelerating and regulators closing in, execution rather than intent will define cybersecurity leadership in 2026.
