Cornerstone Advisors Releases 2026 Commercial Lending Outlook

Baker-Hill-sponsored study highlights modest growth, intensifying competition, and a widening technology divide.

SCOTTSDALE, Ariz., March 25, 2026 /PRNewswire/ -- Cornerstone Advisors, a leading provider of business and technology consulting services for banks, credit unions, and fintech firms, today announced the release of its latest research report, What's Going On in Commercial Lending 2026, offering new insights into the trends, challenges, and opportunities shaping the future of commercial lending.

The report, commissioned by Baker Hill, reveals a cautiously optimistic outlook for 2026, with lenders expecting modest commercial loan growth alongside intensifying competition from nonbank and private credit providers.

Key findings from the report include:

• CRE and C&I remain top focus areas: More institutions are prioritizing these portfolios than in prior years.
• AI's promise vs. reality: Nearly 60% of bankers expect AI to have a moderate-to-strong impact on underwriting and lending processes, yet actual adoption remains limited across institutions.
• CRM underperformance: Despite investments in CRM systems, more than 70% of institutions report little to no improvement in loan production, highlighting a disconnect between technology and commercial lending realities.
• Private credit pressure rising: While only 4% of lenders report strong competitive pressure today, more than half acknowledge growing competition from private credit providers, particularly in underserved or complex borrower segments.

"The commercial lending landscape is evolving — but not always in the ways many expect," said Joel Pruis, senior director at Cornerstone Advisors, who co-authored the report with Ron Shevlin, chief research officer at Cornerstone. "Banks still have significant advantages, but success will depend on how effectively they leverage technology, rethink operating models, and compete on speed and flexibility."

The report also highlights a growing divide between institutions that prioritize data capture and digital infrastructure and those that still rely on manual or fragmented processes — particularly as AI capabilities continue to mature.

"Commercial lending has hit an inflection point. Growth isn't being held back by demand — it's being held back by execution," said Andy Ivanovich, chairman and CEO of Baker Hill. "This research puts data behind what we see every day: the banks and credit unions that capture the right data, simplify the work, and modernize their lending platform are the ones that will move faster, take on more complex deals, and unlock real value from AI. The rest will feel the gap widen as competition ramps up and expectations keep rising."

The research is based on a survey of more than 400 executives from banks and credit unions nationwide with assets of $250 million to $50 billion.

Download a free copy of the report here. Joel Pruis and Sam Kilmer from Cornerstone will present results from the What's Going On in Commercial Lending study at Baker Hill's RISE conference, May 3-5 in San Antonio, Texas. Learn more and register here.

About Cornerstone Advisors
For over 20 years, Cornerstone Advisors has delivered gritty insights, bold strategies, and data-driven solutions to build smarter banks, credit unions, and fintechs. From technology systems selection and implementation to contract negotiations, performance improvement, vendor management, strategic planning, and merger and acquisition services, Cornerstone combines expertise with research and proprietary data to help financial institutions thrive in today's challenging environment.

About Baker Hill
Baker Hill is the leading provider of lending technology for banks and credit unions across the United States. Each month, financial institutions use Baker Hill's platform to process more than $7 billion in lending originations — helping them Lend Better, Lend Faster, and Lend More™ in their communities. Backed by Flexpoint Ford, a private equity firm, Baker Hill delivers the scale, security, and innovation required to meet the demands of modern banking. The company is headquartered in Carmel, Ind., with operations in Santa Barbara, Calif.  

Media Contacts:
Cate Pitts | Editorial Director
Cornerstone Advisors
[email protected]
480-425-5203

Penny Spehar | Spokesperson
Baker Hill
[email protected]
317-814-1260

SOURCE Cornerstone Advisors