Key Highlights and Preview
The 2026 survey covered new and continuing trends, challenges and opportunities that community institutions face.
Key findings reveal three major areas of focus and concern: modernization, cybersecurity and efficiency through AI and automation.
Cautious Optimism Sets the Tone
Respondents report optimism about the future of their financial institutions, while acknowledging the challenges ahead.
- 52% are strongly optimistic about the future of community banking, and another 34% are optimistic.
AI and Automation Dominate Technology Plans
AI and automation are expected to have the largest impact on the financial industry again in 2026 and remain the top technology priority for respondents.
- Implementing efficiency drivers like automation and AI was the top 2026 technology priority, though AI regulatory concerns also persist.
- 85% agree that institutions adopting AI will gain a significant competitive advantage.
- Banks are nearly twice as likely as credit unions to believe that AI can enhance back-office efficiency, with 38% of banks recognizing its potential compared to just 21% of credit unions.
Strategic Modernization is Underway
Financial institutions view technology modernization as a foundational priority for 2026, reflecting a broader need to strengthen systems, improve integration and support future digital initiatives. While automation and AI are part of this landscape, modernization encompasses a wide range of efforts, from core and infrastructure improvements to enhanced data management and more flexible, connected platforms.
- 69% of institutions are extremely or somewhat likely to remain with their current provider at the next contract renewal, suggesting that institutions are seeking stability in their vendor relationships even as they plan for continued modernization.
Cybersecurity Remains a Top Concern
Cyber threats mount, placing greater pressure on institutions to stay ahead of bad actors.
- 83% of respondents feel well-prepared to respond to a cyberattack, though there is a gap in preparedness between community banks (85%) and credit unions (72%).
$5.56M is the average cost of a data breach in the financial industry, down from $6.08 million in 2024.2
Payments Influence Digital Engagement
Payments are emerging as a highly visible digital experience shaping account holder expectations in 2026. Community banks and credit unions are prioritizing cohesive, digital-first payment experiences that influence engagement, provider choice and growth across both consumer and business segments.
- 30% of respondents named improving payments as a top priority for growing digital engagement, second only to personalization and targeted marketing (31%).