Bank Director's 2025 Technology Survey: Banks Grapple With Data, AI Maturity

Rhea-AI Summary

Jack Henry & Associates (NASDAQ:JKHY) is highlighted in Bank Director's 2025 Technology Survey, which reveals significant insights about technology adoption in the banking sector. The survey of 141 banking executives shows that 71% of banks increased their technology budgets with a median rise of 10%.

Key findings indicate that 56% of banks rely on their core provider for data access, while 28% invested in data analysis platforms in the past 18 months. Regarding AI adoption, 66% of banks have drafted AI use policies and 62% are experimenting with limited AI use cases. The survey also reveals that 60% of banks view local banks/credit unions as their primary competition, followed by big banks (53%) and fintech companies (44%).

Positive

• 71% of banks increased technology budgets with median 10% rise
• 66% of banks have drafted AI acceptable use policies
• 70% of larger banks (>$10B assets) invested in data analysis capabilities
• 62% of banks are actively experimenting with AI in limited use cases

Negative

• Only 18% of banks measure ROI on technology investments
• 41% of banks report tech initiatives falling short of objectives
• 33% of respondents believe their bank lacks sufficient tech resources
• One-third of banks struggle with effective data utilization

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Bank Director's 2025 Technology Survey examines decision-making, data strategies and how banks are using artificial intelligence.

NASHVILLE, Tenn., Sept. 16, 2025 /PRNewswire/ -- Bank Director, the leading information resource for directors and officers of financial institutions nationwide, released the results of its 2025 Technology Survey, sponsored by financial technology provider Jack Henry & Associates. The findings reveal how today's bank leaders think about data management, artificial intelligence, competitive dynamics and technology adoption.

Community banks have access to valuable customer financial data, but many bankers admit they don't always know how to make the best of it. In the survey, one-third of bank leaders cite an inability to use data effectively as a top challenge facing their institution when it comes to technology.

"Smaller institutions today must compete with the biggest banks as well as financial technology providers such as PayPal, Block and Chime — all of which leverage data capabilities and increasingly, AI," says Emily McCormick, Bank Director's vice president of editorial & research. "Working with vendors, community bankers indicate that they're working to bridge this gap but still have room to mature."

To effectively use emerging technologies, including artificial intelligence, banks must aggregate, organize and clean their data so they're not relying on incomplete or redundant information. Bank CEOs, chief operating officers, senior technology executives and board members participating in the survey say their institution employs a variety of methods to manage data. Fifty-six percent keep data in the system or platform that generates or uses it, and an equal percentage rely on their core provider to access data. Forty-one percent use spreadsheets to manage data used by business lines, and 39% use a data lake or warehouse to combine data from different sources.

Some banks are tackling this challenge. Twenty-eight percent of respondents say their institution has invested in data analysis platforms or capabilities over the past 18 months, a percentage that climbs to 70% for banks over $10 billion in assets.

"Given efficiency is the primary objective driving investments in data, analysis, automation, and AI, it's no surprise that 71% of respondents increased their technology budgets this year with a median increase of 10%," said Jack Henry President and CEO Greg Adelson. "Banks are making these investments to deliver the fast, secure, and convenient experiences their customers now expect."

The survey includes the views of 141 independent directors, chief executives, chief operating officers and senior technology executives of U.S. banks below $100 billion in assets. Full survey results are now available online at BankDirector.com.

Additional Key Findings 

Acting on AI
Majorities of respondents say their bank has taken some initial steps in response to the growing prevalence of artificial intelligence technologies, including drafting an acceptable use policy for AI (66%) and experimenting with AI in limited use cases (62%). Fifty-three percent say they are educating employees about the threat of AI-enabled fraud.

Stablecoin Impact
Just over half of bank executives and directors say they are slightly concerned about the impact of stablecoins on deposit competition and 19% are moderately concerned; a quarter are not concerned at all. Looking at the broader competitive landscape, 60% identify local banks and/or credit unions as their greatest threat, followed by big or superregional banks (53%) and fintech companies that offer a range of products, such as Paypal or Block (44%).

A Defanged CFPB?
The Trump administration ordered the Consumer Financial Protection Bureau to halt much of its work early this year, and the bureau indicated in an April 2025 memo that it would focus enforcement efforts more on depository institutions than on nonbanks and fintech firms. Sixty-two percent of respondents say this would negatively impact banks' ability to compete.

How Decisions Are Made
More than half (54%) say that a management-level team or steering committee has final approval of technology investments, while 48% say a C-level executive, other than the CIO or CTO, has that authority. Just over a quarter say their board is directly involved in major technology investment decisions.

Measuring Up 
Just 18% of survey respondents say their bank measures return on investment for its technology projects, while 68% do not. Among the 33% of respondents who believe their bank does not allocate sufficient resources to technology and innovation, a lack of clear metrics to understand the ROI of tech investments is cited as the primary shortcoming.

Not Meeting Targets
Fifty-six percent of bank executives and directors say their organization sets clear objectives for technology initiatives and investments. Of those respondents, 41% say a tech initiative has fallen short of the objectives set for it sometime in the past 18 months.

About Bank Director
Bank Director reaches the leaders of the institutions that comprise America's banking industry. Since 1991, Bank Director has provided board-level research, peer-insights and in-depth executive and board services. Built for banks, Bank Director extends into and beyond the boardroom by providing timely and relevant information through Bank Director magazine, board training services and the financial industry's premier event, Acquire or Be Acquired. For more information, please visit BankDirector.com.

About Jack Henry & Associates, Inc.^® 
Jack Henry™ (Nasdaq: JKHY) is a well-rounded financial technology company that strengthens connections between financial institutions and the people and businesses they serve.  We are an S&P 500 company that prioritizes openness, collaboration, and user centricity – offering banks and credit unions a vibrant ecosystem of internally developed modern capabilities as well as the ability to integrate with leading fintechs.  For nearly 50 years, Jack Henry has provided technology solutions to enable clients to innovate faster, strategically differentiate, and successfully compete while serving the evolving needs of their account holders.  We empower approximately 7,400 clients with people-inspired innovation, personal service, and insight-driven solutions that help reduce the barriers to financial health. Additional information is available at www.jackhenry.com.

For more information, please contact Bank Director's Marketing Associate, Emma McMillan-Zapf, at emcmillan@bankdirector.com.

View original content:https://www.prnewswire.com/news-releases/bank-directors-2025-technology-survey-banks-grapple-with-data-ai-maturity-302557863.html

SOURCE Bank Director

FAQ

What percentage of banks increased their technology budgets in 2025 according to Bank Director's survey?

According to the survey, 71% of banks increased their technology budgets in 2025, with a median increase of 10%.

How are banks implementing AI according to the 2025 Technology Survey?

The survey shows that 66% of banks have drafted AI acceptable use policies, 62% are experimenting with AI in limited use cases, and 53% are educating employees about AI-enabled fraud.

What are the main technology challenges facing banks in 2025?

Key challenges include inability to use data effectively (cited by one-third of banks), lack of ROI measurement (82% don't measure), and tech initiatives falling short of objectives (41% report failures).

Who makes technology investment decisions in banks according to the survey?

54% of banks rely on management-level teams or steering committees for final approval of technology investments, while 48% delegate authority to C-level executives (excluding CIO/CTO).

How do banks manage their data according to the 2025 survey?

56% of banks keep data in the system that generates it, 56% rely on their core provider, 41% use spreadsheets, and 39% utilize data lakes or warehouses.