What’s Going On in Banking 2026: AI, Crypto, and Fraud—Oh My!

Cornerstone Advisors Research Report

As the banking industry steps into 2026, financial institutions are navigating a landscape defined by uncertainty, rapid technological evolution, and intensifying competition. Economic fluctuations, regulatory pressures, and shifting customer expectations are forcing banks and credit unions to rethink their strategies. Against this backdrop, the latest research report by Cornerstone Advisors, authored by Ron Shevlin, offers a detailed look at how forward-thinking institutions are adapting to these challenges.

The report, titled What’s Going On in Banking 2026: AI, Crypto, and Fraud—Oh My!, is based on insights gathered from 416 senior executives representing financial institutions with assets ranging from $250 million to $50 billion. Combining survey data with in-depth analysis, the study separates industry hype from reality and highlights the trends that demand immediate attention.

One of the most striking findings is the strong sense of optimism among industry leaders. Despite ongoing economic, political, and regulatory uncertainty, more than 80% of bank and credit union executives expressed confidence about the future of the financial services sector. This optimism suggests that institutions are not only resilient but also prepared to capitalize on emerging opportunities.

Artificial intelligence continues to play a transformative role in banking. The report reveals that AI adoption accelerated significantly in 2025, with generative AI now being used by approximately half of all banks and nearly 60% of credit unions. Beyond generative AI, the concept of agentic AI—systems capable of making decisions and taking actions independently—is rapidly gaining attention at the board level. This shift signals a move toward more advanced, automated, and intelligent banking operations.

However, alongside innovation comes risk. Fraud has emerged as a major strategic concern for financial institutions. The study highlights a sharp rise in first-party fraud, increasing financial losses, and growing anxiety among executives. While many institutions are responding by allocating higher budgets to combat fraud, the report points out a critical gap: system upgrades and implementation efforts are not keeping pace with the scale of the threat.

Cryptocurrency and digital assets are also making their way into mainstream banking discussions. Topics such as crypto, stablecoins, and tokenized deposits are now regularly addressed in boardrooms. Despite this growing interest, actual implementation remains slow. Regulatory uncertainty and the lack of clearly defined use cases continue to act as significant barriers, preventing many institutions from moving beyond the exploration phase.

Technology investment is another key theme shaping the future of banking. Most institutions plan to increase their technology spending in 2026, reflecting a strong commitment to digital transformation. However, the report identifies a persistent execution gap. While many banks announce ambitious plans for system upgrades and replacements, actual deployment often falls short of expectations. This disconnect highlights the challenges institutions face in turning strategy into action.

Overall, the report underscores a critical reality: the banking industry is at a pivotal moment. While confidence remains high and innovation is accelerating, institutions must address execution challenges and rising risks to stay competitive. Those that can effectively balance technological advancement with operational discipline will be best positioned to succeed in the evolving financial landscape.

As 2026 unfolds, the ability to adapt, invest wisely, and respond to emerging threats will define the winners in banking. The insights from this report provide a valuable roadmap for institutions aiming to navigate the complexities of the modern financial ecosystem

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