It looks like banks and credit unions are finally learning that successful digital transformation isn’t about chasing the latest trends – it’s about using technology to solve fundamental customer needs better.
Jack Henry’s 2024 Strategy Benchmark data shows that 92% of financial institutions are investing in digital solutions, and the real winners are those focusing on basic banking needs like making it easier to get answers, schedule appointments, and access expertise when and where it’s wanted.
Credit unions are leveraging AI assistants to deepen their relationships with members, while community banks are streamlining how busy entrepreneurs access small business expertise. Though they’re using similar technology stacks, each is deploying these tools with a laser focus on their unique market strengths. For credit unions, that means AI that enhances personal service. For community banks, it means digital options that give time-strapped business owners instant access to expertise.
The data collected by Jack Henry from 127 banking CEOs tells a clear story: 2025 belongs to institutions that use digital tools to double down on what already makes them indispensable to customers.
Have a look at the lessons shaping 2025 planning below.
Lesson 1: Double Down on Your DNA
The benchmark exposes an interesting divide: banks are heavily investing in SMB services and treasury management, while credit unions are betting big on consumer financial health tools and digital marketing. This isn’t a random split – it’s smart strategy. Banks with strong commercial relationships are using technology to deepen those connections, while credit unions are amplifying their traditional member focus. The lesson? Use technology to strengthen what already makes you special.
Lesson 2: Smart Money Follows Strategy, Not Trends
The investment patterns tell a revealing story. Banks are taking a targeted approach with 1-5% technology increases, hyper-focused on commercial relationships. Meanwhile, credit unions are pushing harder with 6-10% increases but directing that money toward member engagement tools. Neither approach is wrong – they’re just different paths to the same goal: using technology to enhance existing strengths rather than patch weaknesses.
Lesson 3: AI Is Your Secret Weapon for Being More Human, Not Less
Interestingly, credit unions are outpacing banks in AI adoption. Why? They’ve realized AI isn’t just about cutting costs – it’s about creating space for human connection. Look at appointment scheduling, for example. When integrated with AI, it’s becoming a powerful tool for proactive customer engagement, not just calendar management. The benchmark shows that appointment and customer service capabilities rank among the top fintech priorities, with over 40% of institutions planning to embed these solutions. The smartest institutions are using AI to make every scheduled interaction more meaningful – analyzing customer data before meetings and ensuring the right expertise is available at the right time.
Lesson 4: Your Data Blind Spot Is Bigger Than You Think
The benchmark reveals a critical insight into data gaps and uses. Financial institutions typically see only 10-20% of their customers’ financial lives. But leading banks and credit unions have realized this isn’t just a data problem – it’s a knowledge management challenge. The most successful institutions are holistically rethinking how they capture, share, and leverage institutional knowledge.
When a commercial relationship manager with 20 years of experience handles a business loan, they’re not just using data – they’re applying decades of pattern recognition and market understanding. The benchmark shows forward-thinking institutions are systematically capturing this type of expertise by building unified knowledge platforms that combine hard customer data with the collective wisdom of their most experienced agents.
Leaders aren’t just investing in data analytics in 2025 – they’re investing in knowledge systems that make the entire organization smarter. Whether it’s a scheduled appointment or a spontaneous interaction, every touchpoint is an opportunity to leverage your institution’s collective intelligence.
Lesson 5: Digital Done Right Makes You More Local
The benchmark shows 96% of institutions are adding digital services, but leaders are using them strategically, e.g. appointment scheduling that turns routine transactions into advisory conversations, AI assistants that flag opportunities for proactive outreach, and payment solutions that generate real-time insights about customer needs.
When busy business owners use online scheduling to book loan officer meetings, or when AI virtual assistants help identify customers who might need retirement planning advice, these digital tools aren’t just processing transactions – they’re creating moments for meaningful financial guidance. That’s why 92% of institutions are embedding these solutions to transform everyday banking into opportunities for deeper relationships. Are you?