Banks and Credit Unions Boost Tech Budgets to Counter Fintech, Crypto Threats
Event summary
- 88% of financial institutions plan to increase tech spending over the next two years, up from 76% last year.
- AI is the top planned technology investment (48%), followed by digital banking (38%) and data analytics (32%).
- 94% of CEOs plan to add new payment services within the next two years, but only 36% have a formal payments strategy.
- 18% of CEOs plan to support stablecoins, tokenized money, and/or cryptocurrency by the end of 2027.
The big picture
Banks and credit unions are responding to economic uncertainty and technological complexity by prioritizing operational efficiency and deposit growth. The survey highlights a strategic shift towards AI, digital banking, and data analytics as financial institutions seek to compete with fintechs and crypto platforms. The focus on younger accountholders and small businesses underscores the industry's recognition of demographic and market shifts.
What we're watching
- Tech Investment Pace
- Whether the planned 6-10% increases in tech budgets will be sufficient to counter fintech and crypto competition.
- Payments Strategy
- How financial institutions will formalize their payments strategies to capitalize on new services like FedNow and tap-to-pay.
- Generational Targeting
- The effectiveness of credit unions' strategies to attract younger accountholders compared to banks.
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