Another key credit union-focused finding from the study was that 32% of credit unions plan to invest in artificial intelligence over the next two years, versus just 11% of banks. And 37% of credit unions plan to increase their technology spending overall by between 6% and 10% in the next two years, compared to 30% of banks.

While the disparity in AI spending plans between credit unions and banks was significant, the two groups appeared to be on the same page concerning another area of tech spending – fraud detection and mitigation. Forty-four percent of banks and 43% of credit unions listed this area as one of their top three tech spending priorities.

"Given escalating cyber and fraud threats, it's no surprise that both banks and credit unions are making substantial investments in detection and mitigation," Senior Analyst of Jack Henry Corporate Strategy Jennifer Geis said. "Social engineering is the top cybersecurity concern while check fraud continues to be the top fraud threat."

What's more, growing deposits is the top strategic priority for banks and credit unions, however only 44% of credit unions listed growing deposits as one of their top three strategic priorities, compared to 72% of banks. Accountholder acquisition and increasing operational efficiency came in not too far behind increasing deposits as strategic priorities in the next two years for credit unions, at 38% and 36%, while second- and third-place priorities for banks (increasing operational efficiency and growing loans) trailed further behind their top priority of growing deposits, at 53% and 45%.

"With rising deposit costs putting pressure on net interest margins, banks and credit unions have greater urgency to enhance operational efficiency, especially through back-office automation," Senior Director of Jack Henry Corporate Strategy Lee Wetherington said. "Whether your top priority is growing deposits, improving efficiency or preventing real-time fraud, data strategy is now front and center."

Other findings from the report included the following:

• Seventy percent of credit unions and 93% of banks plan to expand their services for small businesses in the next two years.
• Ninety-seven percent of banks and credit unions plan to enhance their lending capabilities in the next two years, but the two groups differed in their targeted areas of lending. Banks' top three lending strategic priorities in the next two years are automated workflows (55%), data analytics and dashboards (48%), and intelligent documents processing and document management (29%). While credit unions' first two strategic lending priorities matched those of banks, underwriting using AI came in third – an area only 7% of banks named as a top priority. The groups also diverged in their opinion of automated prequalification with CRM marketing campaigns, with 19% of credit unions listing it as a top priority versus 2% of banks.
• Ninety-six percent of banks and credit unions plan to add payment services in the next two years, with the FedNow Service being the top priority for both banks (70%) and credit unions (63%).
• Ninety-two percent of banks and credit unions plan to embed fintech into their digital banking experiences in the next two years, with the majority (64%) planning to embed payments fintechs. Sixty-five percent of credit unions, versus 32% of banks, are also looking to embed consumer financial health and digital marketing fintechs. Thirty-nine percent of banks, versus 18% of credit unions, are prioritizing small-business services and treasury management fintechs.

Last year's study also highlighted banks' and credit unions' interest in the FedNow Service,  growing deposits and increasing operational efficiency. The full 2024 report can be accessed here.