MONETT, Mo.—Banks and credit unions are seeking to boost their technology spend, prioritize deposit growth and introduce new payment services as part of their strategic plans for the near future, according to a new report from Jack Henry.
The company’s eighth annual Strategy Benchmark, based on a survey of 193 financial institution executives using Jack Henry solutions, outlines key strategic priorities, concerns and technology investment plans over the next two years.
According to Jack Henry, 88% of financial institutions expect to increase technology spending, up from 76% a year earlier, with 41% planning budget increases of 6% to 10%. Artificial intelligence emerged as the top planned investment for the first time at 48%, followed by digital banking at 38% and data analytics at 32%.
Banks continue to prioritize deposit growth, cited by 64% as their top strategic focus for 2026-2027, while credit unions are placing greater emphasis on attracting younger accountholders, particularly members of Generation Z and Generation Alpha.
New Payment Services
The report said 94% of CEOs plan to introduce new payment services within two years, though only 36% have a formal payments strategy. In addition, 82% of institutions intend to incorporate tap-to-pay capabilities, and 47% expect to embed payments more deeply into digital banking platforms.
Jack Henry found that three-quarters of CEOs plan to expand services for small- and medium-sized businesses, with payment offerings such as FedNow, request-for-payment tools and tap-to-pay among the most common additions.
The report also highlighted growing, though still limited, interest in digital assets. Eighteen percent of CEOs said they plan to support stablecoins, tokenized money or other cryptocurrency capabilities by the end of 2027, including tokenized deposits, on-chain wallets and the ability to exchange and settle funds with digital assets. However, only 3% reported having a formal stablecoin strategy.
One Significant Challenge
Attracting younger customers remains a significant challenge, particularly for credit unions, where more than 40% report having a formal strategy compared with just 10% of banks. Fintech firms and neobanks are viewed as the primary competitive threat in this area, according to the report.
Data analytics also continues to gain importance, ranking as the fifth most critical strategic priority overall. Jack Henry said plans to implement AI increased by double digits compared with last year, and about one-third of financial institutions expect to embed data collection and analytics tools directly into their digital banking platforms.
The survey was conducted online in January and February 2026 and included institutions with assets ranging from less than $500 million to more than $5 billion, according to Jack Henry.
The full report can be found here.
