AI Tops Banking Priorities as Both Opportunity and Threat in 2026
Event summary
- AI ranked as the top technology trend for the third consecutive year, cited by 50% of 252 financial institution leaders surveyed.
- 85% of respondents agree that institutions adopting AI will gain a significant competitive advantage.
- AI-enhanced social engineering attacks emerged as the leading cybersecurity threat, jumping 16 percentage points.
- 86% of respondents expressed optimism about the outlook for community banking, with 91% believing branches will remain relevant for the next decade.
- Strategic modernization ranked as a top priority for 59% of institutions with $5 billion to $10 billion in assets, compared to 31% of those under $250 million.
The big picture
The 2026 Banking Priorities Executive Report highlights a pivotal moment for financial institutions, where AI is both a strategic imperative and a significant risk. The data underscores the need for community banks and credit unions to invest in technology modernization to compete with larger institutions, while also managing the evolving threat landscape. The enduring relevance of branches and the growing interest in digital assets further illustrate the complex dynamics shaping the future of banking.
What we're watching
- AI Adoption Gap
- How the gap in AI readiness between banks and credit unions will evolve, particularly in back-office efficiency gains.
- Cybersecurity Preparedness
- Whether financial institutions can effectively leverage AI to defend against AI-powered threats, especially given the disparity in preparedness between banks and credit unions.
- Digital Asset Integration
- The pace at which digital assets will enter mainstream banking strategies as regulatory frameworks take shape.
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