MiddleGame Ventures says AI strengthens fintech moats as software defenses erode
XLF•MiddleGame Ventures on AI and fintech moats
MiddleGame Ventures argued AI is eroding traditional software moats, driving broad repricing across B2B SaaS valuations.
Fintech is positioned as more AI-resilient due to regulatory barriers, proprietary data, network effects, transaction embedding, and system-of-record control.
AI spending in financial services topped $75 billion in 2026, forecast to reach $125 billion by 2028, supporting vendor demand.
Agentic AI adoption reached 52% of financial institutions by early 2026, shifting budgets from pilots toward scaled deployments.
AI-native payments and market-data infrastructure were cited as new investable categories, tied to a $1.3 trillion generative AI revenue outlook by 2032.
