The Future of Community Banking

Community banks and credit unions are navigating an environment where competitive, technological and regulatory pressures are intensifying. Fintech expansion, megabank competition, rising fraud and widening technology gaps have created conditions that are challenging enough to feel existential for many institutions. Yet the 2026 survey reflects an industry that understands the stakes and is preparing to meet them.

To remain indispensable in consumers’ increasingly digital financial lives, community institutions must evolve from reactive transaction processing to more proactive, insight-driven service. Brand loyalty can no longer be assumed. Meeting rising expectations increasingly depends on modernization and integration efforts that support automation, actionable insights and, over time, more scalable personalization.

The survey results suggest that many institutions recognize this shift and are aligning their priorities accordingly. As they look ahead to 2026, community financial institutions appear ready to move forward with cautious optimism. Their responses point to a clear focus on strengthening the foundational capabilities needed for sustained transformation. When paired with the relationship-centered service that has always defined community banking, these investments position institutions not just to adapt, but to compete.

Community banks and credit unions that blend modern digital capabilities with trusted, human-centered service will be well-positioned to remain essential financial partners to the retail and business account holders they serve, in 2026 and in the years ahead.