The U.S. banking sector enters 2026 with a sharper focus on resilience, customer value, and operational discipline. Part 1 of our Banking Outlook 2026 series explored the forces reshaping revenue and customer expectations. Part 2 turns to the strategic shifts that will determine which institutions strengthen their position and which risk losing ground.
Three themes stand out. Banks are recalibrating product economics, elevating protection and everyday value, and modernising operations with AI. Each reflects a more deliberate approach to growth.
Resetting Product Economics for Stability and Control
Headline performance across the industry remains strong, but underlying economics continue to shift. Net interest margins are volatile. Competition from digital banks is increasing. Customers expect more transparency and relevance. These pressures are prompting banks to strengthen product economics.
AI-enabled pricing and profitability management.
Banks are moving to AI-supported, customer-level profitability models to guide pricing and offers. Granular analytics on deposit and lending behaviour help protect margin at the lower end of the book while supporting highly targeted offers for valuable and growing customers. Scenario modelling across segments improves resilience during rate swings and makes it easier to rebalance pricing as competitive and regulatory conditions change.
Integrated, membership-style customer value.
Customers are looking for cohesive value, not isolated product relationships. Banks are pulling checking, savings, lending, and money management tools into integrated bundles that feel more like memberships than standalone products. These propositions increasingly combine core banking features with ecosystem benefits, such as insurance, partner discounts, or subscription management, to improve retention, share of wallet, and lifetime value.
Margin disciplined balance sheets and reset product economics.
Balance sheet strategy is becoming more selective. Banks are prioritising stable funding, high-quality deposits, and growth that delivers attractive risk-adjusted and capital-efficient returns. That includes a sharper focus on fee and service income, as well as targeted investment in customer experience and technology rather than in undifferentiated balance-sheet expansion. Resetting product economics is essential in an environment where profitability is more difficult to secure and long-term stability matters as much as growth.
Elevating Protection and Everyday Value
Security has become a defining element of customer trust. Fraud continues to rise, and customers want more visible protection. U.S. fraud losses reported to the Federal Trade Commission reached 12.5 billion dollars in 2024, a twenty five percent increase from the prior year. This surge has reshaped expectations.
A 2025 FICO survey found that many U.S. banking customers are concerned about identity risk and expect stronger protection from their primary bank. Among customers who have experienced fraud, more than half want their institution to provide a dedicated fraud prevention resource centre with identity protection, credit monitoring, and hands on support.
Banks are moving from a transactional view of fraud management to a more proactive, customer facing approach. Visible protection strengthens trust and creates the foundation for fee based services that address real customer needs.
Everyday value for essential spending
Customers also want practical value that supports day-to-day financial confidence. Programs focused on groceries, fuel, utilities, and household categories help customers manage essentials while consolidating their spending with a single institution.
These programs drive card usage and digital engagement. When combined with budgeting tools and personalised insights, they position the bank as an active partner in daily financial life. This combination of protection and everyday value is becoming one of the strongest drivers of loyalty.
Modernising Operating Models Through AI
AI adoption is accelerating across U.S. banks, but legacy systems still limit potential value. More than sixty percent of technology budgets remain tied to maintenance and compliance. To unlock efficiency and improve performance, banks must modernise the operating models that surround AI.
Workflow automation.
Banks are automating onboarding, verification, document processing, and servicing tasks. Automation lowers cost, improves accuracy, and shortens cycle times. It also frees front-line teams to focus on higher-value activities.
Real-time risk detection.
Machine learning models provide earlier and more accurate insight into abnormal behaviour. Banks are using these tools to reduce fraud losses and meet customer expectations for stronger protection.
Hyper-relevant engagement.
AI helps banks anticipate customer needs and deliver more personalised recommendations. This improves satisfaction and increases product uptake.
The advantage lies in integration. Banks that redesign workflows, governance, and data infrastructure to support AI-enabled operations will scale benefits faster and improve cost efficiency.
Conclusion
The strategic shifts shaping 2026 reflect a sector focused on resilience, trust, and precision. Banks that reset product economics, elevate protection and everyday value, and modernise their operating models will be better positioned to compete in a market where customer expectations and financial pressures continue to evolve.
Performance, customer experience, and operational capability are becoming inseparable. Banks that act decisively now will build stronger, more durable growth in the years ahead.