Jack Henry Survey Shows Banks Prioritizing AI and Digital Banking Investments

Jack Henry announced in a press release that its eighth annual Strategy Benchmark survey shows strong technology investment plans among U.S. banks and credit unions. The study, based on responses from 193 financial institution executives, highlights artificial intelligence as the leading area of planned spending for the first time.

The survey found that 88 percent of institutions expect to raise their technology budgets over the next two years, up from 76 percent in the prior year. Of those, 41 percent plan increases between 6 and 10 percent. AI leads planned investments at 48 percent, followed by digital banking at 38 percent and data analytics at 32 percent.

Deposit growth remains the top strategic priority for banks, while credit unions are more focused on attracting younger accountholders, particularly from Generation Z and Generation Alpha. More than 40 percent of credit unions have a formal strategy for this demographic, compared with 10 percent of banks.

In payments, 94 percent of CEOs plan to add new services within two years, but only 36 percent have a formal strategy. Tap to pay and embedded payment capabilities are among the most common planned additions. The survey also shows that 18 percent of CEOs plan to support stablecoins or tokenized money by the end of 2027, though few have formal strategies in place.