In a recent press release dated April 28, 2026, Jack Henry & Associates Inc. (Nasdaq: JKHY) unveiled findings from its eighth annual Strategy Benchmark, which surveyed 193 executives from various financial institutions utilizing Jack Henry solutions. The results shed light on the evolving strategic priorities of banks and credit unions as they navigate a landscape marked by economic uncertainty and technological advancement.

2. Key Findings: A Shift in Focus

The survey highlights that financial institutions are increasingly prioritizing operational efficiency, deposit growth, and enhanced payment capabilities. As outlined by Lee Wetherington, Senior Director of Corporate Strategy, the increasing competition from "Big Fintech" and "Big Crypto" is reshaping the financial services landscape. Wetherington stated, "The goal of strategy is no longer simply to win but to ensure you're competing to win the right game."

Technology Investment on the Rise

Notably, a significant majority of financial institutions (88%) plan to elevate their technology expenditures over the next two years, a notable increase from 76% in the previous year. Among these, nearly half (48%) of the institutions identified artificial intelligence as their top planned technology investment, followed by digital banking (38%) and data analytics (32%).

3. Strategic Priorities for 2026-2027

Deposit Growth and New Accountholders

The survey indicated that banks are predominantly focused on growing deposits (64%) as their foremost strategic priority for 2026-2027. Conversely, credit unions (40%) are emphasizing the acquisition of younger accountholders, particularly from Gen Z and Alpha generations. Jennifer Geis, Senior Strategic Advisor at Jack Henry, emphasized the urgency of understanding the unique needs of this demographic, as they are now driving a significant portion of small-business formation.

Expanding Payment Capabilities

The survey also revealed ambitious plans regarding payment services:

A staggering 94% of CEOs plan to introduce new payment services within the next two years, despite only 36% having a formal payments strategy in place.

More than 82% of financial institutions intend to incorporate tap-to-pay solutions to attract younger customers.

Nearly half (47%) of CEOs aim to integrate payment features into their digital banking offerings.

Focus on Small Businesses

Three-quarters of CEOs expressed intentions to expand services tailored for small- and medium-sized businesses (SMBs), with payment services being the most common addition.

4. Cryptocurrency and Future Technologies

The survey's findings also highlighted a growing interest in cryptocurrency:

By the end of 2027, 18% of CEOs plan to support stablecoins, tokenized money, or other cryptocurrencies, although only 3% currently have a formal strategy in place for stablecoins.

Youth Engagement and Competitive Threats

For credit unions, attracting younger accountholders remains a critical focus. The survey indicated that over 40% of credit unions have a formal strategy aimed at this demographic, contrasting sharply with just 10% of banks. The rise of fintechs and neobanks has emerged as a significant concern for traditional financial institutions in this space.

5. Conclusion: Adapting to a New Hybrid Monetary Era

As financial institutions brace for a new hybrid monetary era characterized by rapid changes in technology and consumer preferences, the findings from Jack Henry's Strategy Benchmark serve as a crucial roadmap. With increasing investment in technology and a clear focus on operational efficiency and customer engagement, banks and credit unions are positioning themselves to navigate the complexities of the modern financial landscape.

Jack Henry & Associates continues to support its clients with innovative solutions that foster growth and operational excellence, ensuring they remain competitive in an ever-evolving market.

Original press release