Community banks lack youth acquisition strategies despite fintech threats, Jack Henry says
JKHY•Jack Henry said 70% of banks lack a formal strategy to acquire Gen Z or Gen Alpha customers, while 58% see fintechs as a top competitive threat. It cited technology integration challenges and limited data infrastructure as barriers to innovation.
1. Survey findings
Jack Henry urged community banks to shift technology spending toward growth, citing gaps in the 2026 Bank Director Technology Survey. Fintechs ranked among top competitive threats for 58% of banks, and challenger banks concerned 40%; meanwhile, 70% lacked a formal strategy to acquire Gen Z or Gen Alpha accountholders.
2. Technology barriers
Technology projects missed objectives at 58% of banks, up from 22%, with integration challenges contributing. Generative AI adoption reached 72%, while 30% used a data lake or warehouse.
