The 2026 Banking Priorities survey highlights this shift: • 92% of bankers surveyed agree their institution is growing its existing customer base. • 82% are focused on increasing retail deposits. • 86% are focused on increasing commercial relationships. High acquisition costs are also influencing strategy. BAI research shows the average cash incentive offered to attract new checking accounts is $277, and promotion-driven churn can drive costs higher. Instead, many institutions are exploring referral programs, which can attract higher-value account holders at a lower cost. #3: OPERATIONAL EFFICIENCY Tight margins and rising expectations are pushing financial institutions to streamline operations. In the study, 74% of leaders said their processes could be more efficient, and the same percentage said they would prefer to consolidate technology with fewer providers. In response, institutions are prioritizing investments that drive efficiency at scale. Automation and AI are the top tech investment priorities this year, followed by data analytics and digital account opening. Together, these investments help reduce manual work, streamline operations and generate faster insights. As a result, institutions are rethinking how work gets done, shifting toward more integrated systems and data-driven decision-making. #2: CYBERSECURITY AND FRAUD DEFENSE Cybersecurity and fraud prevention remain top priorities in 2026, as the cost of being unprepared continues to rise. More than 50% of fraud executives expect losses in U.S. banking payments to increase by over 10% in the next three years. Artificial intelligence is both part of the problem and part of the solution. Attackers are increasingly using AI to scale scams that look and sound more convincing than ever. Banking leaders rated AI-enhanced social engineering (such as voice cloning and QR-code phishing) 16 percentage points higher this year than last, making it the top cybersecurity concern. At the same time, 57% of respondents said cybersecurity is AI’s most valuable application. Fraud and financial crimes are just as concerning. In the study, card and check fraud remain the most common types of fraud, but close behind are phishing, wire transfer fraud, P2P fraud and fraudulent account opening. Phishing is particularly painful because it often happens outside the financial institution’s ecosystem. Microsoft research shows that AI-generated phishing emails can drive a 54% click-through rate vs. 12% for traditional phishing, which could make phishing up to 50x more profitable for criminals. #1: TECHNOLOGY MODERNIZATION Technology modernization ranks #1 among strategic priorities because it’s what unlocks everything else on this list (and more). In the survey, prioritization increases with institution size, from 31% at smaller institutions ($100 million-$250 million) to 59% at larger ones ($5 billion-$10 billion). Modernization typically includes initiatives that improve system integration, data flow and the ability to launch new capabilities more quickly. As a result, institutions are prioritizing integration and simplification. In the survey, 93% of banking leaders said they are interested in customizing product offerings through technology integrations, while 74% prefer consolidating technology providers. These challenges are particularly evident in commercial banking, where technology limitations and integration gaps were cited as the top barrier to expanding commercial portfolios. The strongest modernization strategies will create technology environments that are easier to integrate, easier to manage and flexible enough to support future innovation. MOVING FORWARD IN 2026 In 2026, the most effective institutions will align their spending with a broader strategy to protect the institution, improve the consumer experience and remove operational friction. Scan the QR code to read more about financial institutions’ strategic priorities for the year in the 2026 CSI Banking Priorities Report. https://www.csiweb.com/docs/banking-priorities-2026 Tara Schultz serves as senior vice president of strategic insights and industry relations at CSI, where she develops corporate strategies to accelerate revenue growth through new products, partnerships and acquisitions. She has more than 15 years of experience in the fintech and financial services industry and has a proven track record of driving revenue growth and executing strategic partnerships. 19 WEST VIRGINIA BANKER
RkJQdWJsaXNoZXIy ODQxMjUw