Banking has long been defined by its resilience, built on robust systems that have served us well through economic cycles and technological shifts. Yet, as we stand on the edge of profound change, it’s clear that incremental tweaks to legacy architectures won’t suffice. The future demands a fundamental reimagining of what a bank can be, especially for community banks, regional institutions, and even the top 50 players navigating a landscape increasingly shaped by digital innovation.

Having advised banks across the spectrum for over 25 years, from small community lenders to major national entities, I’ve witnessed firsthand how clinging to outdated systems can hold back growth, profitability, and customer expectations. With fintech and big tech reshaping customer expectations, traditional banks must adopt new technologies to stay competitive. At CCG Catalyst, we help institutions develop effective strategies to succeed in this evolving landscape. Key trends include near-zero cost payments, AI-driven banking, and quantum-accelerated intelligence, signaling a shift from legacy systems to agentic models. The industry faces considerable challenges, but we all can agree transformation is essential but takes time.

The Shift to Near-Zero Cost Payments

Traditional payment systems in the US, such as ACH and wire transfers, have been reliable workhorses, but they’re showing their age with high costs, delays, and friction especially in cross-border or real-time scenarios. Community banks often bear the brunt, with limited resources to overhaul these rails, while regional and top 50 banks grapple with scaling inefficiencies amid regulatory scrutiny from the FDIC and Federal Reserve.

The good news? We’re on the cusp of near-zero cost payments through stablecoins and digital currencies, leveraging blockchain for seamless, real-time transactions. This isn’t just hype; it’s already unfolding. Consider FedNow, the Federal Reserve’s instant payment service launched in 2023 and expanding rapidly to over 1.3 million transactions settled in Q1 2025 alone, marking a 43% increase from the prior quarter. By Q2 2025, the service processed $245 billion in transactions, a staggering 49,000% year-over-year growth. Stablecoins like USDC, now regulated under the GENIUS Act of 2025, which was signed into law on July 18, 2025, and incorporating key elements from the companion STABLE Act of 2025 such as enhanced transparency and accountability measures are bridging the gap, requiring 1:1 backing by high-quality liquid assets like U.S. Dollars, Treasury Bills, or overnight repurchase agreements. This legislation, overseen by the U.S. Treasury, mandates issuers to have seizure, freeze, or burn capabilities for compliance. Pilots from banks such as  BNY Mellon are demonstrating settlements in seconds rather than days.

This evolution opens doors to “streaming money,” where payments flow continuously based on usage, not arbitrary cycles. For a community bank, imagine billing customers in real time for electricity consumption, reducing bad debt and enhancing cash flow. Regional banks could personalize lending for small businesses, streaming funds as milestones are met. Even the largest banks, with their vast portfolios, could dismantle monthly invoices for services like wealth management, fostering deeper client relationships.

Agentic Banking

The barriers to innovation in the US banking environment — regulatory hurdles, capital requirements, and siloed operations have historically favored scale. For example, only larger banks can afford the compliance costs associated with strict regulations, giving them an advantage over smaller competitors. But agentic AI, where intelligent agents collaborate as a unified AI ecosystem, is changing that. This isn’t about replacing staff, it is about augmenting them to create lean, purpose-driven institutions.

Picture a network of AI agents seamlessly managing compliance by monitoring regulatory changes in real time, assessing risk, and delivering highly personalized customer service. For community banks, this means smaller, agile teams can zero in on specialized areas such as agricultural lending for rural communities. Regional banks, meanwhile, could leverage agentic AI to support small business expansion across state lines, for example, providing tailored financing solutions for fast-growing local food cooperatives or craft breweries, enabling them to scale without being limited by geographic boundaries. As for top 50 banks, their substantial investments in AI (consider JPMorgan’s significant tech budget) position them to use agentic systems to optimize back-office operations, freeing up resources for strategic initiatives and growth.

We have seen early adopters thrive: 75% of US banks with over $100 billion in assets are expected to fully integrate AI strategies by the end of 2025. Agentic AI is embedding across front, middle, and back offices, supercharging automation, and driving operational excellence. It is disrupting retail and SME banking by enabling AI agents to make sophisticated decisions, potentially reshaping billions in revenue. Regulatory oversight is key, the OCC emphasizes risk-based, technology-neutral principles for AI governance. The Treasury’s 2024 report on AI in financial services underscores a landscape shaped by federal agencies to mitigate risks. The key differentiator? A clear vision. What unique problem does your bank solve? Banks need to define that “vibe” what is your strategic intent and integrate agentic tools to make it operational, ensuring you’re not just automating but innovating.

Returning to basics, as I have stated many times, banking is about relationships and trust. Agentic models amplify that, allowing even smaller institutions to punch above their weight. If you’re pondering your next step, consider: Is your bank ready to shift from siloed departments to a cohesive, AI-powered ecosystem?

Quantum-Accelerated AI

While AI is the engine, quantum computing provides the turbocharge, enabling computations that classical systems can’t touch. In the US, where financial simulations drive everything from credit risk to portfolio management, this could be a game-changer, but keep in mind, adoption is still in pilots.

Quantum-accelerated AI promises real-time scenario modeling. Simulate economic shocks on millions of accounts in minutes, not days. For community banks, this means hyper-personalized lending decisions, assessing risks with unprecedented accuracy. Regional institutions could optimize M&A strategies amid consolidation trends, while top 50 banks could tackle complex fraud patterns invisible to current tools.

Institutions like HSBC have demonstrated the world’s first-known quantum-enabled algorithmic trading for bond optimization, showing empirical value in September 2025 trials with IBM. JPMorgan Chase is investing in pilots for fraud detection and risk forecasting, part of a broader trend where 73% of global financial institutions, including many US banks, have integrated quantum pilots. The OCC continues to monitor progress toward quantum computing capabilities and associated risks alongside AI, as outlined in its Fall 2024 Semiannual Risk Perspective, while the White House’s July 2025 AI Action Plan calls for nimble federal oversight. The divide is forming: Early adopters will gain an edge in personalization and efficiency

At CCG Catalyst we recommend Banks need to pursue a phased integration, starting with assessments of their tech stack to identify quantum ready opportunities. It’s not about overnight change but strategic planning, much like building a retirement portfolio, where long-term vision yields sustainable results.

Charting Your Path Forward

US banking stands at a crossroads. Community banks risk obsolescence without digital agility, regional players must scale niches. The largest institutions need to outpace fintechs like Chime or SoFi. The convergence of these trends of near-zero payments, agentic banking, and quantum AI, demands more than patches. It requires a “start from scratch” mindset.

Prioritizing tactical fixes over visionary strategy is a trap we have seen too often. Instead, identify your core purpose, align technologies accordingly, and build for the long haul. Whether you’re a community bank fostering local ties or a top-tier player eyeing national dominance, the future belongs to those who reimagine banking as a dynamic, intelligent ecosystem.

If this resonates, let’s connect. At CCG Catalyst, we’re here to partner on your transformation crafting bespoke strategies that turn these insights into actionable plans. Reach out today; the time for visioning is over. The era of building is here.