MILWAUKEE, Wis. – Wipfli, an accounting and advisory firm, released its 2026 state of the banking industry and state of the credit union industry research reports, marking the firm’s fifth consecutive year surveying financial institution leaders on their economic outlook, priorities and top challenges. 

The findings indicate resilient growth expectations alongside accelerating digital transformation – and a sharp rise in cyber and fraud risks as institutions expand access and speed.

Across both sectors, executives expect asset growth of 5% or more in the next 12 months while accelerating strategies around AI, embedded banking and digital engagement. Cybersecurity incidents rose year-over-year, driving demand for stronger data governance, identity controls and fraud defenses. Branch models are shifting as institutions plan to open or repurpose locations for market entry and advisory services. Leaders also flagged talent gaps in cyber, data and risk as a critical barrier to achieving 2026 goals.

Banking: Confidence Meets Complexity

Banks enter 2026 with a bullish growth outlook – especially among larger institutions – and a clear mandate to modernize their operations. Most respondents are researching or implementing AI, yet only a small share report an enterprise-wide roadmap with governance and measurable business impact. 

Cyberthreats are intensifying as attackers adopt deepfake audio, synthetic identities and automated phishing. Branch footprints are being reshaped to support growth, and talent shortages threaten to slow progress on technology and risk initiatives.

“Banks are pushing for growth while rebuilding their digital foundations,” said Anna Kooi, partner and financial services practice leader at Wipfli. “The institutions that win in 2026 will pair disciplined AI roadmaps with modern risk controls – and invest in the talent that can navigate both.”

By the numbers (banks):

  • 67% expect asset growth of 5%-plus in the next 12 months.
  • 81% experienced at least one unauthorized network access incident in the past year.
  • 66% plan to open new branches; 55% plan to repurpose existing locations; 30% plan to close branches.
  • 60% say talent shortages could impede strategic priorities.
  • 67% are implementing AI, but only 16% have an enterprise-wide AI roadmap.

Credit Unions: Mission, Modernization and Member Trust

Credit unions are striking a balance between growth and the stewardship of member trust and community impact. Leaders report strong momentum around embedded banking and BaaS partnerships and prioritize digital member engagement as the top strategy for the next year. 

AI adoption is widespread, often through vendor-enabled features embedded in existing platforms; however, overreliance on out-of-the-box tools can erode differentiation unless guided by governance and tailored to unique data use cases. Cyber and fraud risks are increasing in parallel with the expansion of digital access.

“Credit unions thrive when innovation strengthens the member relationship,” Kooi said. “In 2026, the advantage goes to teams that align embedded banking and AI with clear governance – and design digital engagement that earns trust every day.”

By the numbers (credit unions):

  • 57% expect asset growth of 5%-plus in the next 12 months.
  • 92% are participating in or planning BaaS/embedded banking within 12 months.
  • 77% experienced at least one unauthorized network access incident in the past year.
  • 62% plan to open new branches.
  • 64% rank improving digital member engagement as a top priority.
  • 82% are implementing AI.

The state of the banking industry report is available HERE. The state of the credit union industry report is available HERE.