Navigating the Future: What 2026 Holds for Banks and Credit Unions

Insights from Wipfli's 2026 Banking Report

Wipfli, a well-respected accounting and advisory firm, has just published its latest research on the 2026 state of the banking and credit union sectors. For five consecutive years, Wipfli has conducted this survey, gathering insights from top financial institution leaders regarding their expectations, strategic priorities, and challenges. The findings underscore a promising outlook for growth while also highlighting increasing risks in cyber and fraud, especially as institutions adapt to rapid digital transformations.

Key Findings on Banks

In a clear indication of a healthy appetite for growth, 67% of surveyed banks expect asset growth of 5% or more within the coming year. Amidst this optimism, a crucial focus has been the modernization of operations. Notably, a significant proportion of bank executives are either researching or actively implementing artificial intelligence (AI) technologies in their services. Despite this technology adoption, only 16% have a comprehensive AI strategy in place that includes governance and measurable outcomes. This discrepancy highlights the challenges banks face in balancing innovation with robust risk management practices.

Security has also become a pressing issue. A staggering 81% of banks reported at least one incident of unauthorized network access in the past year, demonstrating a clear need for strengthened cybersecurity measures. To address this, institutions are investing heavily in enhancing data governance and fraud prevention mechanisms.

The evolving branch models are another focal point of transformation. Banks are either opening new locations or repurposing existing ones to optimize market entry and advisory services. However, the talent gap in cybersecurity, data management, and risk assessment is a significant concern that could hinder strategic ambitions for 2026.

According to Anna Kooi, a partner at Wipfli, the key to success lies in merging disciplined AI strategies with modern risk controls and investing in the right talent to navigate these complexities.

Insights on Credit Unions

Credit unions, meanwhile, are navigating a delicate balance between growth and fostering member trust. Leaders in this sector identified embedded banking and partnerships with Banking as a Service (BaaS) as integral to their growth strategies for the upcoming year. Digital member engagement has emerged as a primary focus area, with credit unions aiming to enhance their service offerings through innovative technology. An impressive 82% are currently implementing AI in their operations, though many rely on vendor-supported features that may lack customization unless guided by rigorous governance.

The upward trend in digital access has paralleled an increase in cyber risks, making it imperative for credit unions to reinforce their security measures. Interestingly, 77% reported experiencing unauthorized network access incidents, highlighting the ongoing challenges they face in a digital-first environment.

Kooi remarked that credit unions can thrive by ensuring that innovation strengthens member relationships, emphasizing that success in 2026 will favor those teams that effectively align embedded banking solutions with clear governance and trust-building digital engagement strategies.

Looking Ahead

As we move into 2026, both sectors must confront the dual challenges of rapid digital adoption and emerging cybersecurity threats. With growing expectations for asset growth and the ongoing digital transformation, financial institutions are urged to adopt a proactive approach to risk management and governance.

Wipfli's reports delve deeper into these findings, providing tailored guidance on AI governance, strategies to mitigate cyber risks, and talent planning to help institutions thrive in this evolving landscape. The complete reports offer valuable insights for banks and credit unions aiming to succeed in the competitive financial services market.

To download the comprehensive reports and view detailed strategy recommendations, visit Wipfli’s official site.