2026 Banking Trends
The story isn’t steady change it’s accelerated progress.
AI and adjacent technologies are moving at a clip, and banks are matching that urgency—racing to modernize while keeping trust, clarity, and day‑to‑day usefulness at the center. The narrative is speed with safeguards: move quickly, validate rigorously, and ship experiences that improve outcomes without adding complexity for customers, regulators, and the institution itself.
The promise of the year ahead is tangible for institutions. Banks will remove hurdles and shorten cycles across digital channels, rolling out smarter controls that quietly strengthen account security and data accuracy. Payments will move faster and arrive with clearer, richer context—enabling clients, both retail and commercial, to reconcile and decide with confidence. The common thread: more banks will operationalize these capabilities as standard features of the relationship.
Those trends reflect findings from the KPMG 2025 Banking Survey: Technology, which asked two hundred U.S. banking executives—from large institutions to regional and community banks—to assess their organization’s maturity, key investments, and readiness for new technology paradigms.
1
Banking that works the way people live
The digital front door is now the main entrance. Institutions are sharpening the experience across online (96%) and mobile (95%) channels, and investing in messaging, chat, and virtual assistants to cut friction for everyday tasks. Half of leaders see modernizing digital channels as essential to delivering better, more personalized service, with 52% pushing to evolve and compete more effectively with fintechs. Expect 2026 to emphasize fewer steps, faster guidance, and consistency across devices—the hallmarks of a simpler, more dependable relationship with your bank.
2
GenAI: governed, useful, and increasingly visible
Artificial intelligence is moving from promise to practical utility. 61% of institutions place GenAI among their top investment priorities, and 57% view it as critical to long‑term relevance. Adoption is most advanced in cybersecurity and fraud, where more than 80% have active pilots or live use cases, and more than 90% report similar progress in fraud detection. GenAI is also reshaping the defense posture—70% are elevating cybersecurity efforts in response to emerging technologies—so customers experience fewer false alarms and quicker resolutions without sacrificing privacy or control.
3
Data modernization: the trust multiplier
Better outcomes start with cleaner data. Banks are tackling longstanding blockers—privacy and risk (93%), data quality (89%), and legacy integration (81%)—and shifting from plans to execution. 68% have defined a target‑state data vision; 65% have a roadmap and funding; 77% apply a consistent standard of care to data controls. In practice, that means more accurate balances and alerts, fewer reconciliation errors, and personalization that feels helpful rather than intrusive—a smarter, calmer experience rooted in reliability.
4
Cyber resilience: layered defenses, faster recovery
Resilience is the new baseline. With 75% of institutions reporting more cyberattacks, budgets are rising (89%), protections are strengthening (91% say investment is sufficient), audits are more frequent (77%), and broader team training is underway (73%). 82% report robust security measures across complex cloud and microservices estates. The focus in 2026 is speed: detect, contain, and recover quickly—protecting customer assets and maintaining confidence when minutes matter most—while staying ready for evolving supervisory expectations.
5
Payments modernization: faster rails, richer insight
Payments modernization is about utility, not just compliance. ISO 20022 upgrades unlock richer data, and leaders see a clear upside—46% call it an opportunity for new value and differentiation, while 31% view it as both regulatory and value‑add. Near‑term priorities include card solutions (76%), open banking (75%), front‑end channel upgrades (69%), instant cross‑border payments (63%), and payments AI plus embedded finance (both 58%). The result is money that moves quickly and arrives with clearer context—making it easier for consumers and businesses to reconcile, plan, and act with confidence.
The outlook is steady and optimistic. Institutions are investing with intent, aligning technology, data, and risk disciplines to deliver everyday value—not noise.
Customers gain fewer hurdles and stronger safeguards.
Businesses gain clearer information and faster resolution.
Regulators gain confidence in resilient operations and well governed change.
In a year shaped by disciplined execution, progress will be measured in reduced friction, better insight, and trust earned one straightforward interaction at a time. The possibilities are broad and within reach: safer accounts, simpler journeys, smarter operations. With thoughtful attention to the macro environment and a relentless focus on practical outcomes, 2026 offers clear next steps —made real through decisions that favor clarity, resilience, and the customer experience.
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