Jack Henry's Annual Survey of Financial Institutions Highlights Priorities Amid Economic Uncertainty and a New Hybrid Monetary Era
Rhea-AI Summary
Jack Henry (Nasdaq: JKHY) reports banks and credit unions plan higher tech spending amid economic uncertainty and a “hybrid monetary era.” 88% expect larger tech budgets over two years; 48% prioritize AI, followed by digital banking (38%) and data analytics (32%). Payments, SMB services, and younger accountholder strategies are top operational focuses.
Survey of 193 Jack Henry clients (Jan–Feb 2026) shows 94% plan new payment services, 75% will expand SMB services, 18% plan crypto/stablecoin support by 2027, yet few have formal strategies in place.
Positive
- 88% of institutions expect to increase technology budgets over the next two years
- AI is top planned investment at 48% of respondents
- 94% of CEOs plan to add new payment services within two years
- 75% of CEOs plan to expand services for small and medium businesses
Negative
- Only 36% of institutions report having a formal payments strategy in place
- Only 3% of CEOs report a formal stablecoin strategy despite 18% planning crypto support by 2027
- Just 10% of banks have a formal strategy to add younger accountholders, indicating a bank–credit union gap
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Banks and credit unions plan to increase technology spending, led by investments in AI, digital banking, and data analytics
Jack Henry® (Nasdaq: JKHY) surveyed 193 executives from financial institutions using Jack Henry solutions. The survey highlights the industry's most pressing strategic priorities, top concerns, and technology investment plans for the next two years.
"Banks and credit unions have finally recognized their biggest competitive threat in Big Fintech and Big Crypto," says Lee Wetherington, Senior Director of Corporate Strategy and lead author of the benchmark. "As we enter a new hybrid monetary era, the game is changing and charter franchises are under attack. The goal of strategy is no longer simply to win but to ensure you're competing to win the right game."
The vast majority of financial institutions plan to increase technology spending, with
"Financial institutions are in a high-stakes race for Gen Z and small business," says Jennifer Geis, Senior Strategic Advisor of Corporate Strategy at Jack Henry and Managing Editor of the study. "Given Gen Z now drives most small-business formation—and given small-business deposits are 4-5X larger than retail—understanding and meeting the unique needs of "bizumers" is key to growth, whether you frame it in terms of deposits or demographics."
Among the highlights from the survey:
- Payments
- More than nine out of 10 CEOs (
94% ) plan to add new payment services within the next two years, yet only36% have a formal payments strategy in place. - More than four out of five (
82% ) financial institutions plan to incorporate tap-to-pay as part of their strategy to add younger accountholders. - Nearly half (
47% ) of CEOs plan to embed payments into their digital banking experience over the next two years.
- More than nine out of 10 CEOs (
- Small Business Focus
- Three out of four CEOs say they plan to expand services for small- and medium-sized businesses (SMBs).
- The most common planned addition is payment services, including FedNow®, request for payment, and tap-to-pay.
- Cryptocurrency
18% of CEOs plan to support stablecoins, tokenized money, and/or cryptocurrency by the end of 2027. This includes:- Tokenized deposits/deposit tokens
- Support for on-chain wallets for accountholders
- Ability to orchestrate, exchange, and settle dollars to and from stablecoins/crypto.
- However, only
3% of CEOs report having a formal stablecoin strategy in place.
- Getting Younger
- The second most important strategic priority for credit unions (and fourth overall) is adding younger accountholders. It is also one of the top three concerns for CEOs.
- More than
40% of credit unions have a formal strategy, compared to just10% of banks. - Fintechs and neobanks are considered the biggest competitive threat in this area.
- Data analytics and AI
- Leveraging data is the 5th most important strategic priority overall among banks and credit unions
- Plans to implement AI grew double digits compared to last year
- 1/3 of FIs plan to embed data collection/analysis tools within digital banking
The study's results are based on an online survey conducted in January and February 2026 of a diverse sample of Jack Henry clients with assets ranging from less than
About Jack Henry & Associates, Inc.®
Jack Henry® (Nasdaq: JKHY) is a well-rounded financial technology company that strengthens connections between financial institutions and the people and businesses they serve. We are an S&P 500 company that prioritizes openness, collaboration, and user centricity – offering banks and credit unions a vibrant ecosystem of internally developed modern capabilities as well as the ability to integrate with leading fintechs. For 50 years, Jack Henry has provided technology solutions to enable clients to innovate faster, strategically differentiate, and successfully compete while serving the evolving needs of their accountholders. We empower approximately 7,400 clients with people-inspired innovation, personal service, and insight-driven solutions that help reduce the barriers to financial health. Additional information is available at jackhenry.com.
Statements made in this news release that are not historical facts are "forward-looking statements." Because forward-looking statements relate to the future, they are subject to inherent risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. Such risks and uncertainties include, but are not limited to, those discussed in the Company's Securities and Exchange Commission filings, including the Company's most recent reports on Form 10-K and Form 10-Q, particularly under the heading "Risk Factors." Any forward-looking statement made in this news release speaks only as of the date of the news release, and the Company expressly disclaims any obligation to publicly update or revise any forward-looking statement, whether because of new information, future events or otherwise.
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SOURCE Jack Henry & Associates, Inc.