The banking industry is entering a moment of transition. After several years of economic uncertainty, shifting consumer behavior, and rapid technological change, the industry is now adjusting to a new reality.
As the new year approaches, experts are closely watching how banks evolve and what those changes could mean for everyday customers. Here’s what they predict for banking in 2026 — and how these shifts could impact the way you spend, save, and borrow.
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Next year, we can expect to see an accelerated shift toward digital-first banking. In particular, competition around AI and fintech will continue to reshape how banks serve their customers. That includes everything from pricing, to risk management, to lending decisions.
“In 2026, banks won’t just be experimenting; they’ll be operationalizing AI across the enterprise,” said David Becker, founder and CEO of First Internet Bank. “Think: predicting loan defaults months ahead or identifying market risks before we commit capital. That’s not theory — it’s happening now.”
This should translate to several benefits for customers, including more personalized services, enhanced fraud protection and security, and faster loan approvals with more data-driven underwriting. Additionally, bank customers will have access to a growing number of traditional banking alternatives — such as neobanks, fintech platforms, and online lenders — opening up more choices when it comes to where they put their money, and potentially, at a lower cost.
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According to an analysis by Capital One, about 48% of American adults make no cash purchases in a typical week, while an estimated 69% of Americans used cash for few (if any) purchases over the last 12 months. In fact, an estimated 87% of all transactions in the U.S. are cashless.
As more businesses shift to a digital-only approach, an increasing number of consumers will transition from physical payment methods to digital wallets and other forms of non-cash payment.
That said, cash won’t exactly be obsolete by next year; older generations have been slower to adopt non-cash payment methods. Additional Capital One research found that younger Americans aged 18 to 26 are most likely to use digital wallets, with 91% using them as their primary payment method for shopping in 2023. That’s compared to 59% of Americans aged 27 to 42 years old, who used digital wallets more than other shopping methods, and 50% of Americans aged 43 to 58.
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The Fed recently lowered the federal funds rate for the third time this year as it works to reduce the inflation rate. Experts predict additional rate cuts in the coming months, although when this will occur is unclear, especially given the uncertainty…
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