MILWAUKEE, Wis.—Executives with both credit unions and banks expect asset growth of 5% or more in the next 12 months and have plans to accelerate strategies around AI, embedded banking and digital engagement, according to a new report that examines the state of both the credit union and banking industries.
The report, conducted for the fifth year by Wipfli, an accounting and advisory firm, identifies executives’ economic outlook, priorities and top challenges. Among those challenges, leaders are expecting a sharp rise in cyber and fraud risks as institutions expand access and speed.
“Cybersecurity incidents rose year over year, driving demand for stronger data governance, identity controls and fraud defenses,” Wipfli said in releasing its findings. “Branch models are shifting as institutions plan to open or repurpose locations for market entry and advisory services. Leaders also flagged talent gaps in cyber, data and risk as a critical barrier to achieving 2026 goals.”
What Credit Union Leaders are Saying
According to the report’s analysis, credit unions are striking a balance between growth and the stewardship of member trust and community impact.
“Leaders report strong momentum around embedded banking and BaaS partnerships and prioritize digital member engagement as the top strategy for the next year,” Wiipfli said. “AI adoption is widespread, often through vendor-enabled features embedded in existing platforms; however, overreliance on out-of-the-box tools can erode differentiation unless guided by governance and tailored to unique data use cases. Cyber and fraud risks are increasing in parallel with the expansion of digital access.”
Gaining the Advantage
“Credit unions thrive when innovation strengthens the member relationship,” Anna Kooi, partner and financial services practice leader at Wipfli, said in a statement. “In 2026, the advantage goes to teams that align embedded banking and AI with clear governance — and design digital engagement that earns trust every day.”
The Numbers
According to Wipfli, the report found:
- 57% expect asset growth of 5%+ in the next 12 months.
- 92% are participating in or planning BaaS/embedded banking within 12 months.
- 77% experienced at least one unauthorized network access incident in the past year.
- 62% plan to open new branches.
- 64% rank improving digital member engagement as a top priority.
- 82% are implementing AI.
Banking Industry Responses
Meanwhile, Wipfli said its analysis found banks enter 2026 with a bullish growth outlook — especially among larger institutions — and a clear mandate to modernize their operations.
“Most respondents are researching or implementing AI, yet only a small share report an enterprise-wide roadmap with governance and measurable business impact,” the company said. “Cyberthreats are intensifying as attackers adopt deepfake audio, synthetic identities and automated phishing. Branch footprints are being reshaped to support growth, and talent shortages threaten to slow progress on technology and risk initiatives.”
The Numbers
The survey found that with banks:
- 67% expect asset growth of 5%+ in the next 12 months.
- 81% experienced at least one unauthorized network access incident in the past year.
- 66% plan to open new branches; 55% plan to repurpose existing locations; 30% plan to close branches.
- 60% say talent shortages could impede strategic priorities.
- 67% are implementing AI, but only 16% have an enterprise-wide AI roadmap.
How to Get the Reports
