Jack Henry Releases Benchmark of Bank and Credit Union CEOs' Top Priorities

About this update from Jack Henry & Associates, Inc.

[{"type":"text","content":"Research identifies financial institutions' strategic priorities for 2023 and 2024\nMONETT, Mo., May 25, 2023 /PRNewswire/ -- Deposits, loans, data, and efficiency top the list of strategic priorities for community and regional financial institutions, according to Jack Henry's fifth-annual survey of bank and credit union CEOs.\n\n \n \n \n \n \n \n\n \nThe survey provides a peer benchmark for strategic planning, which financial institutions can use to pinpoint emerging areas of opportunity and allocate technology investments. In addition to providing high-level insights, the survey focuses on key competencies across technology infrastructure and major business lines, including core, open banking, digital, lending, payments, and risk, fraud, and security.\nKey takeaways from the Strategic Priorities Benchmark Study:\nWhile growing deposits topped the list of priorities for banks, leveraging data was the top priority for credit unions. Growing deposits also ranked as the most difficult priority to achieve.79% of financial institutions (FIs) plan to increase their technology spend over the next two years; digital banking, fraud and security, and data analytics are the top three technology investments planned.Beyond a shared fear of deposit attrition and displacement, banks and credit unions differ in their top concerns. Banks' top concerns include talent retention, NIM compression, and regulatory changes, while credit unions' biggest worry is an economic slowdown – and a related rise in delinquencies.90% plan to embed fintech into their digital banking experiences, with 65% planning to embed payments fintechs.65% plan to expand services for small and medium-sized businesses (SMBs); commercial lending tops the list of SMB services FIs plan to add.Phishing and real-time payments top the most concerning fraud/security threats. The study's lead authors, Lee Wetherington, senior director of corporate strategy at Jack Henry, and Jennifer Geis, senior strategy analyst at Jack Henry, say last year's inflection points – changes in the business environment that required FIs to make significant adjustments to their operation and management – gave rise to distinct market shifts that are creating new opportunities for banks and credit unions in 2023 and 2024. Inflation, rising rates, and deposit churn have created a series of knock-on effects u...

More updates from Jack Henry & Associates, Inc.