Key Insights from Cornerstone Advisors' 2026 Banking Research Report: AI, Crypto, and Fraud

Exploring the Future of Banking: AI, Crypto, and Fraud Management

As we step into 2026, the landscape of banking is undergoing significant transformations driven by technology and evolving threats. Cornerstone Advisors' recent report, "What's Going On in Banking 2026," provides an insightful exploration of the challenges and opportunities faced by banks and credit unions. Here are the key takeaways from the report, based on a survey conducted among 416 senior executives in the banking sector.

The Dominance of AI in Banking

Artificial Intelligence (AI) has swiftly moved from theoretical discussions to practical applications within financial institutions. The report notes that nearly half of the banks surveyed—49%—and 59% of credit unions have already integrated generative AI into their operations. This technology is far from being just a buzzword; it is being utilized to enhance efficiency and improve customer experiences. Moreover, discussions around agentic AI are gaining momentum, with more than 50% of institutions addressing it at the executive or board level.

This shows a clear indication that leaders in the banking sector are not only experimenting with AI but are committed to embedding it within their operational frameworks. "AI, crypto, and fraud are no longer future discussions—they're changing banking today," states Ron Shevlin, Chief Research Officer at Cornerstone Advisors.

Addressing the Fraud Crisis

Fraud remains a pressing concern for banks and credit unions, becoming a critical issue on their balance sheets. In 2025, approximately 40% of banks and 50% of credit unions reported increased fraud-related losses. Alarmingly, first-party fraud now constitutes over 40% of total fraud losses, prompting about 75% of institutions to enhance their fraud prevention budgets. As financial institutions grapple with these grave losses, they recognize the need for advanced security solutions alongside their technology investments.

Crypto and Tokenization in Focus

Discussions regarding cryptocurrencies have permeated the boardrooms of financial institutions. More than 70% of banks are now exploring stablecoins, with over half considering the implications of tokenized deposits or blockchain technology. This rise in interest is largely fueled by fierce competitive pressures from fintechs and crypto-native companies, provoking traditional banks to innovate swiftly. The need for adaptation in this rapidly changing market is more crucial than ever, as these technologies promise to redefine financial services.

An Optimistic Yet Cautious Outlook

Despite the challenges posed by fraud and technological integration, optimism prevails in the banking industry. About 82% of executives express confidence regarding the future of banking in 2026. However, concerns regarding deposit growth, operational efficiency, cybersecurity, and fraud management continue to dominate the strategic agendas of these institutions. This indicates a nuanced interplay between optimism and the recognition of existing challenges.

Increased Technology Spending, Yet Gaps Persist

As banks gear up for a tech-driven future, over 80% plan to increase their technology spending throughout 2026. However, many institutions have faced obstacles in implementing previously planned system deployments. This ongoing disconnect between strategy and execution highlights the importance of not just investing in technology, but also ensuring that these systems are effectively operationalized.

The "What's Going On in Banking 2026" report marks the 11th iteration of a series focused on the responses of U.S. banks and credit unions with assets ranging from $250 million to $50 billion. The forthcoming reports will delve deeper into specific topics like commercial lending and fraud, continuing to empower financial institutions with the insights they need to adapt to the changing environment.

For professionals looking to understand the future of banking, Cornerstone Advisors will present key findings from their research in an upcoming webinar on February 25, where industry leaders will discuss how they can leverage these insights for strategic advantage. Download the full report for free to explore more about how AI, cryptocurrency, and fraud management will shape the banking industry in the near future.