Growing, adapting and defending: New Wipfli research reveals how banks and credit unions are navigating AI, growth and risk

Sixth annual Wipfli research finds AI outperforming expectations, digital engagement rising on leadership agendas and cybersecurity remaining the industry's top concern.

MILWAUKEE, Nov. 3, 2026 /PRNewswire/ -- Wipfli, a leading national advisory and accounting firm, released its 2027 state of the banking industry and state of the credit union industry research reports, marking the firm's sixth consecutive year surveying financial institution leaders on their economic outlook, strategic priorities and top challenges.

The findings reveal stronger growth expectations, accelerating AI adoption and continued investment in digital transformation. At the same time, cybersecurity, fraud and governance concerns remain top challenges as institutions modernize operations and expand technology investments.

Across both sectors, executives identified improving digital customer and member engagement, advancing data analytics and AI capabilities and exploring new growth opportunities among their leading strategic priorities. Nearly 60% of executives in both studies reported AI outcomes that exceeded expectations, while cybersecurity and fraud remained the top concern among financial institution leaders.

"Financial institutions understand they can't afford to stand still," said Anna Kooi, partner and financial services practice leader at Wipfli. "The challenge isn't whether to modernize. It's how to pursue growth, AI and digital transformation while maintaining the security, governance and trust that customers and members expect."

Banking: Growth remains strong as leaders pursue new opportunities

Banks enter 2027 with a strong outlook. Nearly two-thirds (63%) of banking executives expect asset growth above 5% during the next 12 months, with confidence strongest among larger institutions. Among banks with more than $5 billion in assets, 76% project growth above 5%.

Leaders are also looking beyond traditional growth models. Exploring new revenue streams climbed into the top three strategic priorities this year, reflecting a broader focus on revenue diversification and long-term profitability.

"Bank executives are taking a disciplined approach to growth," Kooi said. "They're prioritizing efficiency, profitability and long-term value while investing in the technology and capabilities needed to remain competitive."

By the numbers (banks)

• 63% expect asset growth above 5% during the next 12 months.
• 59% report AI outcomes have exceeded expectations.
• Cybersecurity and fraud ranked as the top concern for the fourth consecutive year.
• Exploring new revenue streams climbed into the top three strategic priorities.
• 66% expect AI to have no impact on headcount.
• 21% expect staff increases to support data and AI initiatives.

Cybersecurity continues to challenge the industry. 38% of executives reported increased cyberattacks during the past year, while 46% reported increased fraud activity. Although some institutions report threat levels have stabilized, leaders increasingly recognize they are operating in a permanently elevated risk environment.

At the same time, AI adoption continues to accelerate. Only 21% of banking executives reported no formal AI initiatives, paused efforts or canceled projects. Institutions are finding the greatest value in fraud detection and financial crime prevention, customer service, back-office operations, and risk and compliance support.

Credit unions: Confidence rebounds as institutions invest in members and modernization

Credit unions enter the year with renewed optimism, particularly among larger organizations. 69% of executives expect asset growth above 5% during the next 12 months. Among credit unions with more than $1 billion in assets, that figure rises to 82%.

Deposit acquisition emerged as the leading growth driver, highlighting the importance of strengthening member relationships and funding stability in a competitive market. Digital member engagement and data analytics and AI capabilities also ranked among the sector's leading strategic priorities.

"Credit unions continue to demonstrate that innovation and member service go hand in hand," Kooi said. "The organizations building momentum are using technology to strengthen relationships, improve efficiency and create better experiences for their members."

By the numbers (credit unions)

• 69% expect asset growth above 5% during the next 12 months.
• 59% report AI outcomes have exceeded expectations.
• 50% plan to expand AI investments focused on fraud and financial crime prevention.
• Cybersecurity and fraud ranked as the top concern among executives.
• 63% reported increased fraud activity during the past year.
• 71% expect AI to have no impact on staffing levels.

Cybersecurity concerns remain elevated across the sector. More than half of executives reported increased cyberattacks during the past year, while nearly three-quarters experienced at least one unauthorized network or data-access incident.

Meanwhile, AI adoption has become increasingly mainstream. Only 8% of credit union executives reported no formal AI initiatives, paused projects or canceled implementations. Institutions are most commonly using AI for back-office operations, fraud detection, financial crime prevention, and risk and compliance functions.

"Many institutions have moved beyond asking whether AI belongs in their organization and are now focused on where it creates the greatest value," Kooi said. "Success starts with governance frameworks that allow organizations to innovate while maintaining trust."

Shared across both sectors: AI is delivering results, but governance matters

One of the clearest findings across both studies is that AI is delivering measurable business value. Nearly 60% of banking and credit union executives reported outcomes that exceeded expectations, particularly in fraud detection, operational efficiency and risk management.

Despite those gains, cybersecurity concerns, regulatory uncertainty and governance requirements continue to slow broader AI expansion.

"Pursuing AI is a strategic choice, and it needs to match an institution's risk tolerance," Kooi said. "AI adoption may create some cyber exposure, but inaction creates competitive risk and ungoverned action creates operational exposure."

Download the full reports, including methodology, detailed findings and Wipfli's recommendations for financial institution leaders:

• State of the banking industry 2027
• State of the credit union industry 2027

About Wipfli

Wipfli is a leading national advisory and accounting firm with nearly 100 years of serving ambitious middle-market organizations. We understand our clients' unique challenges and help them succeed on their terms through assurance, tax, advisory, outsourcing and technology services. With 2,900+ associates and global alliances, we combine national capabilities with local relationships. Wipfli operates under an alternative practice structure: Wipfli LLP, a licensed CPA firm, provides attest services, while Wipfli Advisory LLC, a non-CPA firm, delivers business advisory and non-attest services. Learn more at wipfli.com or contact Alicia O'Connell at [email protected]. 

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SOURCE Wipfli