The state of the banking industry 2026 research report

Rethinking growth. Risk. Readiness.

The pace of change has never been faster — and the cost of standing still has never been higher.

Now in its fifth year, Wipfli’s state of the banking industry report examines how financial institutions are working to grow, modernize and protect their organizations amid new digital realities. Wipfli surveyed 345 financial institution executives to understand their business outlook, pain points and strategic priorities for the year ahead.

In this survey, we learned:

• Confidence is high: Two-thirds (67%) of the executives we surveyed expect asset growth of 5% or more in the next 12 months. Confidence is strongest among those from larger institutions ($5B+ asset size), where 79% of respondents expect growth above 5%.
• Digital dominates priority lists: Respondents’ most important strategies for the year ahead include data analytics/AI and improving digital engagement, followed closely by talent management. Interest in banking as a service (BaaS) and embedded banking continue to rise, with 88% of respondents participating or planning to participate in these services — up from 66% last year.
• Fraud and cyberthreats are intensifying: Cybersecurity (including fraud) was the top concern for the third consecutive year, surpassing the next-highest concern (employee recruitment and retention) by 19 percentage points. In the past year, 81% of respondents experienced at least one cybersecurity incident at their institution.
• Branch strategies are evolving: Two-thirds of respondents plan to open new branches in the next year, and more than half (55%) plan to repurpose existing locations to support new banking experiences.
• Talent remains a strategic constraint: Employee recruitment and retention was the number two concern for the third consecutive year. Sixty percent of respondents said talent shortages could impact their ability to achieve strategic priorities.

Download the full report for additional findings, plus insights from Wipfli advisors.