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Written by: Rasib Bhanji | AGF Investments
Non-bank financials endured a tumultuous first half of 2026 for two reasons: the perception of technological disruption and regulatory uncertainty. Tech—and increasingly AI-enabled platforms—is accelerating the narrative that financial services businesses are ripe for dis-intermediation. Specifically, if financials are service-oriented businesses run by people, why can’t AI that is supposedly as intelligent just replace them?
Meanwhile, the Trump administration’s deregulatory agenda has boosted activity across capital markets, benefiting investment banks and trading-focused brokers by facilitating higher trading volumes and increased mergers and acquisitions activity. On the other end, Trump’s vocal critiques of credit card swipe fees and his administration’s regulatory stance on exchange market infrastructure have raised concerns around the moat of the payment networks and the established exchanges. The Commodity Futures Trading Commission approval of perpetual Bitcoin futures on platforms such as Kalshi and Coinbase are a notable example.
It’s not all bad, though. Among the many pockets of dislocated sectors, the wealth management sector stands out. The market’s initial fear that AI would make wealth advisory redundant has yet to be proven true. Robo-advisors, first introduced in 2016, still manage less than 2% of U.S. advisory mediated total addressable market. People and relationships are still what make this business tick.
Rather than replacing advisors, AI is providing more value as a productivity tool. Companies are improving their margins by automating administrative tasks without materially changing the client experience they provide.
However, non-bank financials remain an impatient market. Companies are often punished hard for missing guidance, especially when management provides weak explanations. Consistent execution continues to matter in this space.
Growth is therefore more important than ever, whether measured by users or assets under management. It’s a readthrough as to whether a company is gaining or losing market share. Beyond growth, the question is whether margins can be sustained or improved as competition intensifies and traditional moats come under pressure.
AI is also exposing businesses with weak moats, such as data and info services companies that just repackage publicly available data. Investors are increasingly questioning the value of these business models with so much information at their disposal.
This increased sophistication and resilience of the retail investor is making the trading environment more interesting right now. Overall volume is rising on the back of low trading fees, the accessibility of institutional-level tools and data, and the proliferation of new products.
The companies that stand to benefit the most within this space are those participating in this structural upswing while also creating new opportunities through tokenization, prediction markets, and early access to IPOs, among other activities. Ultimately, the winners moving forward are likely to be the companies that best use technology to strengthen their competitive position. As AI lowers barriers to entry and regulation reshapes market structure, the ability to attract assets, deepen client relationships, and expand margins will become increasingly important differentiators. Strong execution matters more than ever before.
Related: AI Is Entering Its Most Dangerous Phase for Investors