Banks and credit unions have a sharpened focus on digital transformation, fraud prevention and small business services this year, according to Jack Henry’s seventh annual “Strategy Benchmark survey” published today.

The report, based on responses from 149 C-level executives at financial institutions using Jack Henry products and services, highlights the shifting priorities and risks facing the industry, the report stated.

Nearly 76% of FIs aim to increase their tech spend in 2025 to meet strategic priorities, while 24% aim to increase AI investments in double-digits percentage growth year over year, the report stated.

The survey shows that top bank priorities for 2025 are:

• 64% want to grow deposits;
• 64% want to improve net interest margin rates; and
• 54% want to improve operational efficiency.

On the other hand, top concerns for credit unions are:

• 38% are concerned about fraud losses;
• 37% are concerned about attracting a younger demographic; and
• 36% are concerned about talent acquisition and retention.

A common focal point for the FIs is embedding fintechs in their offerings. Ninety-four percent of FIs plan to embed fintech into their digital banking experiences, with 89% planning to add new payment services over the next two years and are prioritizing joining FedNow, the report stated.

Eighty percent of FIs are also planning on increasing their services catered toward small and medium-sized businesses, the report stated, adding that “financial institutions plan to add payment services, digital service tools and credit/lending options for their small business accountholders.”