Cornerstone’s Annual ‘What’s Going On’ Report Finds Banking Execs Have Measured Optimism on Next-Gen Tech

By W.B. King 

Borrowing a famous refrain from the Wizard of Oz, the title of Cornerstone Advisors’ 2026 report is: What’s Going on in Banking—AI, Crypto, and Fraud: Oh My!

“That’s the image that comes to mind thinking about bankers heading into 2026: walking through the scary woods of the new banking landscape, chanting ‘AI, crypto, and fraud, oh my!’,” noted Cornerstone Advisors Chief Research Officer and report author Ron Shevlin. “I’m not much of a futurist, but I’ll wager that these three topics will continue to be hot throughout 2026.”

The 72-page report takes a deep dive into topics noted in the title. For this review, Finopotamus focused on economic forecasts and artificial intelligence (AI) trends. Shevlin noted that the 11^th installment in the annual series is unique because there will be two forthcoming inaugural companion pieces: What’s Going on in Commercial Lending and What’s Going on in Fraud.

An Uncertain Economy Breeds Hope

To achieve a better understanding of current industry trends, the featured report surveyed 416 respondents, 46% from banks, 54% from credit unions, 89% who work for financial institutions (FIs) in the $250 million to $50 billion asset range. More than seven in 10 respondents are C-level execs—including 30% who are CEOs—with the balance from senior vice presidents and vice presidents, explained Shevlin.

“I believe the sample is representative of FIs that are forward-thinking about technology, aggressive about growth and market share, and unafraid to take on the megabanks, fintechs, and others competing with them for mind and market share,” Shevlin said. Overall, eight out of 10 respondents are “very” or “somewhat” optimistic about 2026, with just 1% “very” pessimistic.

Photo: Cornerstone Advisors

Among those banking executives that are optimistic about the economy is President and CEO of NorState Federal Credit Union Jeffrey Davenport. “With the potential for ongoing rate cuts by the Fed, hopefully it will help to spur loan growth and small business expansion in our communities,” he noted. The Madawaska, Maine-based credit union supports more than 14,500 members.

Jeff Conrad, CEO at the $668 million Baton Rouge, La.-based Pelican State Credit Union, which supports more than 80,000 members, offered a different take: “While the economy is improving, the split between affluent and less affluent continues to widen. The mid to lower affluent population has less disposable income than previously. Subprime auto, Visa, and unsecured losses are at an all-time high. 2026 could improve or erode further based upon members trying to maintain their same living standards and living off credit or buy now pay later.”

The AI Quandary: What’s the Strategic Advantage?  

Noting that 2025 was the year banking executives “woke up to AI,” Shevlin asked those polled “Will AI will replace us?” and provided his own take.

“AI could be the great equalizer for credit unions and community banks competing against large banks and fintechs—but only if the industry can solve its talent and capability gaps,” said Jim Adamczyk, SEVP/chief strategy officer, FAIRWINDS Credit Union. The $5 billion Orlando, Fla.-based credit union supports more than 240,000 members. “Use cases are easy to spot, yet a lack of deep understanding around security, governance, and implementation priorities will leave many of these institutions overly reliant on vendors, weakening governance and limiting any strategic advantage.”

Ron shevlin

The report also stated that the percentage of credit unions that deployed generative AI grew from 36% going into 2025 to 59% going into this year. “2026 is the year to operationalize generative AI. If you sleep on this, you’re behind,” noted Laura Mueller, vice president of IT Software Solutions at the $2 billion La Crosse, Wis. -based Marine Credit Union, which has approximately 80,000 members.

“Generative AI gave way to agentic AI as the hottest buzzword in 2025. Credit unions have more aggressive plans for agentic AI across functional areas like the contact center, fraud management, lending, and finance/accounting,” the report found.

While Shevlin said AI isn’t the future, but rather present-day reality, he still feels there’s too much “hype.” He cited a McKinsey report that suggested AI could soon automate up to 50% of banking tasks, and that Accenture forecasts a 20%-30% reduction in operational costs over the next five years.

“These are wildly, overly optimistic projections. Directionally, however, they’re correct. The challenge: Where should financial institutions begin—or adjust— their AI-related efforts?” Shevlin said and offered a three-point playbook: knowledge management, business process design, and personal productivity. “Focus on what business issues and challenges need to be addressed, and which technology can help. If the technologies that can help are AI-related technologies, so be it.”

What Would James Brown Do?

Among Shevlin’s parting thoughts: “You have a lot of decisions to make in 2026 (and beyond) about AI, crypto, and fraud. Deferring investments and actions may be the right strategy but only if it’s a conscious, data-driven decision,” he shared, adding a homage to one of his musical heroes, James Brown. “Whatever you do in 2026, don’t do nothing; ‘get up offa that thing’ and do something.”

To learn more about Shevlin’s take on crypto and fraud, among other AI-related topics, the report is available for download.