2026: Banking’s Next Frontier
Community Bankers Embrace an Era of AI and Increased Efficiency
The U.S. financial industry is entering a pivotal year. The pace of technological change, rising consumer expectations and growing risks are reshaping how community banks and credit unions operate.
Community financial institutions face intensifying pressure from multiple directions. Digital-first fintechs continue pushing upward from the low end of the market while larger banks continue moving down-market. High regulatory and compliance demands persist, while Gen Z and Millennials show less loyalty and greater digital expectations.
Despite these pressures, many financial institution leaders remain optimistic. From artificial intelligence (AI)—expected to have the biggest impact this year—and automation to digital-first payments and cybersecurity, they’re embracing tools to modernize operations, increase efficiencies, mitigate risks, transform data into personalized interactions and strengthen account holder relationships.
This report explores how community banks and credit unions plan to navigate this next frontier, highlighting the priorities, challenges and technology strategies shaping 2026. As community institutions modernize and adapt, many aim to ensure new solutions strengthen their ability to serve account holders and maintain the relationship-driven approach that defines them.
About CSI’s 2026 Banking Priorities Survey
Understanding where the banking industry is headed starts with listening to the leaders who shape it every day. That’s why CSI conducts an annual survey of community and regional financial institutions across the country: to capture their priorities, challenges and technology plans for the year ahead.
These insights provide a clear view of trends and peer strategies, helping community financial institutions see where they’re on track and where they may need to adjust.
Use this report as a practical guide for navigating 2026 with confidence and delivering the experiences that delight, protect and support your account holders.
Independent firm CITE Research conducted this eleventh annual survey in October 2025. Responses were gathered from 252 community banking professionals at manager level and above, from institutions nationwide, strategically dispersed across these demographics:
Institution Asset Size
$100M - $250M
$250.1M - $500M
$500.1M - $1B
$1.1B - $5B
$5.1B - $10B
Financial Institution Type
Community Bank
Credit Union
Role of Respondent
C-Level Executive
Senior Vice President
Vice President
Director
Manager
This interactive report reveals their responses, along with industry insight and expert perspectives, to provide a holistic outlook. All percentages are rounded to the nearest whole percentage point with an estimated margin of error of slightly over 6%.