Nigel Morris, Managing Partner at QED Investors, says he has never witnessed a shift as profound as the one driven by agentic AI. In his view, this technology is reshaping the entire Fintech industry in ways that go far beyond previous cycles of innovation. His perspective carries particular weight or signifcance because QED has backed some of the world’s most successful fintech companies, and Morris has watched the sector evolve from fringe experiments to mainstream players.
This week, QED released its fourth annual report on the future of fintech, produced in partnership with McKinsey & Company.
At the report’s launch session in New York City, Morris highlighted several key developments that signal a new era of maturity and opportunity for the industry.
First, the scale of today’s fintech platforms is striking. Four companies are now approaching $100 billion valuations.
Morris recalled early skepticism around Nubank, the Brazilian digital bank QED supported when major traditional lenders dismissed it as inconsequential.
Today, Nubank serves 54 percent of Brazilian households, demonstrating how quickly challenger brands can achieve dominant market positions.
Equally important, fintech firms have carved out deep competitive advantages in areas where incumbent banks have been slow to compete.
Categories such as buy-now-pay-later financing, digital brokerage platforms, neobanking, and cross-border payments have moved well beyond experimental stages.
These are now large, profitable, high-growth businesses that have built durable moats through superior technology, customer experience, and speed to market.
Looking ahead, Morris pointed to a healthy IPO pipeline as further evidence of the sector’s strength. Thirty-one fintech companies went public in 2025, with a substantial list of additional candidates preparing for the public markets.
He noted that the performance of high-profile listings like OpenAI and SpaceX could help set the tone for broader investor appetite in the coming year.Yet the most transformative force, in Morris’s estimation, is agentic AI.
He described the current wave of AI development as unprecedented in his 40-year career.
Whether an organization is an established bank or a nimble startup, Morris urged immediate and serious engagement with the technology.
“The opportunities are massive,” he said, emphasizing that those who act decisively will be best positioned to capture the next chapter of financial services innovation.
Morris expressed his eagerness and intereast in co-authoring the research report with McKinsey’s team.
For fintech industry professionals and ecosystems investors, Morris’ main takeaway is that the convergence of mature business models and breakthrough AI capabilities is creating conditions for a considerable leap forward for nearly all market participants.
