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Infographic
May 12, 2026

where community banks are investing and what’s at stake

Banks Are Investing More in Technology, but Strategic Gaps Remain

JH-Brand-BrandAuthority-Outlook-FY27-RDP-2026TechSurveyInfographic-1420x900

Executive Summary

New research reveals that community bank executives and directors – in response to rising competitive threats from fintechs – are putting their tech budgets toward increasing efficiency and AI adoption. But in the process, they’re missing out on implementing strategies that could attract younger customers.


As fintechs continue expanding their reach, community banks face increasing pressure to differentiate and compete. And many are overlooking one of the biggest growth opportunities: attracting the next generation of customers. Based on key findings from Bank Director’s 2026 Technology Survey, the infographic below explores how banks are navigating fintech competition, technology strategies, AI adoption, and generational growth.

competitive pressure from fintechs is rising

Who do community banks see as their top competitive threat?

  • 61% local banks and credit unions

  • 58% fintechs like PayPal and Block

  • 48% big and superregional banks

  • 16% cryptocurrency or stablecoin platforms

technology is focused on efficiency

Banks are executing defensive strategies, prioritizing operational performance over growth-oriented innovation.

  • 76% say improving efficiency is guiding their technology strategy

  • 24% say their technology is primarily focused on generating growth

the next generation opportunity is wide open

How many banks are strategizing to win Gen Z and Gen Alpha customers?

  • 28% have a formal strategy to attract and retain the next generation of customers

  • 70% do not have a formal strategy to attract and retain the next generation of customers

AI adoption and governance lead to operational benefits

AI adoption is accelerating, driven primarily by Microsoft Copilot.

  • 88% of banks have drafted an acceptable use policy for AI

  • 72% of banks have implemented generative AI

  • 65% of bank non-adopters cite lack of expertise as the top barrier

turn your tech investment into increased market share

As fintechs continue to target your customers and local communities, you can fight back by building a formal strategy with a dedicated tech budget and measurable goals to help you attract younger generations and capture market share within this crucial segment.

don’t miss your next growth opportunity

Gain offensive strategies from our FinTalk blog and explore deeper benchmarking data in the complete Bank Director 2026 Technology Survey.

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