2026 Trends Shaping How Financial Institutions Modernize with AI-Assisted Engineering
Naresh Babu
As financial institutions race to modernize aging systems, a new wave of 2026 trends is reshaping how transformation happens. AI-assisted engineering is emerging as the cornerstone of modernization, accelerating code remediation, automating testing, and embedding compliance across the software lifecycle. Whether it’s modernizing legacy systems, automating testing, or generating living documentation, an AI-powered approach helps financial institutions move faster, safer, and smarter; turning modernization from a roadmap into measurable progress. In this article, Naresh Babu, AI Technology Leader and Digital Technology Specialist, explores the key trends driving that shift, how AI is bridging the legacy-modern gap, and what forward-thinking banks and insurers are doing today to stay ahead of the curve in 2026.