January offers a wealth of data for analysis. I recently reviewed the Capgemini Banking Top Trends 2026 report, which I found particularly insightful. However, with numerous research reports to consider and I have reviewed in the last couple of months, it is easy to feel overwhelmed by the volume of information. The following is my analysis of key highlights for community and regional banks from various reports that I reviewed.

Generative AI in Banking: Today, Tomorrow, and Beyond

Community and regional banks are vital to local economies, providing 63% of agricultural loans amid industry shifts. Aligning with Deloitte’s 2026 outlook on AI scaling and cyber resilience, we examined Capgemini’s three imperatives, customer engagement, operational efficiency, and technological innovation. Drawing from ICBA reports on robust 2026 prospects and FedNow adoption, my focus is on scalable strategies for banks with limited budgets and talent gaps.

Overview of Banking Imperatives in the US Context

US community and regional banks face economic moderation (2.1% GDP growth projected), regulatory deregulation, and fintech competition. Capgemini’s trends echo Deloitte’s emphasis on AI industrialization. Over 60% of retail customers prefer digital channels, matching eMarketer forecasts. Non-cash volumes double by 2029, driven by wallets. Productivity struggles (35% confident in risks), with fraud concerns (59% identity threats). Opportunities include AI efficiency gains (20-60% in workflows) and partnerships. ICBA notes 91% digital optimism, ABA AI budgets in 66% of banks.

Priority Matrix for US Community and Regional Banks

Capgemini’s matrix rates trends by priority and impact. For community banks, I adjusted for regional focus with high priority on cost-effective AI compliance and payments. Impacts emphasize CX and profitability. In the Sector column, R = Retail, W = Wealth and P = Payments.

Notes: Priorities elevated for AI/cyber due to threats, impacts based on Deloitte’s AI ROI.

Customer Engagement Trends

Over 60% US retail customers use digital exclusively, aligning with eMarketer. High net worth customers demand personalization (61%), merchants seamless payments (60%).

Trend 1: Personalization as a Growth Driver

• Background: Overlook preferences despite data; 38% switch from poor service.
• Evidence: 73% motivated by rewards; 75% plan AI agents; 68% accept AI guidance.
  
  

Trend 2: Engaging the Under-40 Customer

• Background: Tools lack engagement.
• Evidence: 68% boomers want education; 74% Gen Z social challenges; 40% media learning; 91% digital optimism.
  
  

Trend 3: Wealth Diversification

• Background: Limited alternatives.
• Evidence: 42% favor thresholds; 60% semi-liquid AUM growth; 70% RIAs tech.
  
  

Trend 4: Seamless Checkout

• Background: Merchants to PayTechs; failures erode trust.
• Evidence: 63% options influence; 47% diversity; 80% one-click. Embedded finance.
  
  

Use Cases

• Wells Fargo: Google Agents pace for AI efficiency across channels.
• Citizens Bank: Open API secure access; 95% scraping reduction.
• SouthState Bank: AI chatbot cuts times.
  
  

Operational Efficiency Trends

• 40% CXO on compliance; volumes doubling. ABA AI guide.
  
  

Trend 5: Proactive Compliance

• Background: Fragmented data.
• Evidence: 35% risk-ready; 70% $1M+ savings; 36% fraud. 60% false positives reduction.
  
  

Trend 6: Payment Orchestration

• Background: Costs, downtime.
• Evidence: 47% failures impact; 35% routing; 42% fraud priority.
  
  

Trend 7: Enhanced Productivity

• Background: 69% admin.
• Evidence: 42% 10% savings; 53% automation. nCino AI deposits.
  
  

Use Cases (US-Focused)

• Wells Fargo: Scales AI.
• Citi Wealth: Dashboards.
• nCino: Levels deposits.
  
  

Trend 8: Defensive Futureproofing

• Background: Fragmented systems.
• Evidence: 54% AI fraud; 40% incident decline; 58% AI strategies. WEF threats.
  
  

Trend 9: New Payment Mix

• Background: Fee erosion; regulations.
• Evidence: 77% disruption; 44% fintech ties; 65% infrastructure. FedNow 1,500+.
  
  

Trend 10: Value-Driven Merchant Acquiring

• Background: Deprioritized margins.
• Evidence: 40% switch PayTechs; 80% open banks; 56% multi-currency.
  
  

Use Cases (US-Focused)

• Citizens: API access.
• BNY/J.P. Morgan: AI anomalies.
• ANZ (Adaptable): Insights; US ICBA tools.
  
  

As we navigate the landscape of banking in 2026, community and regional banks stand at a critical juncture where embracing AI-driven personalization, operational efficiencies, and technological innovations isn’t just advantageous, it’s essential for survival and growth. By leveraging partnerships with fintechs and adopting scalable tools like agentic AI for compliance and payment orchestration, banks can overcome resource constraints, enhance customer loyalty, and fortify against cyber threats, ultimately positioning themselves as resilient pillars in local communities. For a deeper dive into how these trends can be tailored to your bank’s unique needs, I encourage you to explore CCG Catalyst’s insights or reach out to us to discuss strategic implementations that drive sustainable value.