Bank leaders from across the country gathered in Phoenix earlier this week for AOBA 2026, and between the packed sessions and lively discussions, two dominant themes consistently emerged: AI adoption in banking operations and the rapid evolution of payments and digital assets. Together, they signal a pivotal shift in how financial institutions must think about innovation, risk, and growth. Here’s what stood out.
1. AI is no longer optional
Artificial intelligence dominated the conversation. From SRM’s own sessions to panel discussions across the event, AI was the most attended topic, drawing energized dialogue from bankers at every stage of adoption.
While the pandemic first pushed community banks to embrace innovation and work with technology partners, AI is now accelerating transformation at an entirely new level. It’s clear that AI has moved from “nice to have” to essential.
Most conversations today focus on AI’s role in fraud prevention, credit reviews, compliance, and back-office efficiency – and rightly so. But a notable shift is beginning: community banks are starting to explore how AI can also drive growth, not just risk reduction. Used thoughtfully, AI has the potential to help banks proactively deepen relationships with both new and existing customers by identifying needs earlier, personalizing outreach, and supporting long-term client engagement.
Yet, adoption isn’t without hesitation. Concerns around risk management, vendor trust, and internal readiness persist. The recommended approach echoed across sessions was to take small, high-impact steps, partner with trusted vendors, and build confidence incrementally while keeping long-term growth in view.
2. Risk and due diligence remain front and center
With AI and other emerging technologies, banks are taking vendor evaluation with heightened scrutiny. Sessions highlighted the importance of asking vendors how many clients use AI tools, carefully reading contracts, and ensuring opt-out provisions are built into workflows.
Compliance remains a top priority, particularly regarding AML and BSA requirements. Basel III updates and OCC regulations were repeatedly referenced as guiding frameworks, reinforcing the need for thoughtful risk oversight as banks experiment with innovation.
3. Real-time payments and digital wallets are reshaping expectations
The Day 3 “Emerging Payment Trends” session underscored the urgency of rethinking payments. Customers increasingly expect instant, seamless experiences, and banks are beginning to recognize that payments are not simply transactional – they drive engagement and loyalty.
While traditional payment rails still dominate overall volume, the growth of real-time payments is accelerating rapidly. According to NACHA, approximately $63 trillion in B2B payment volume still flows through ACH annually. In contrast, real-time payments currently account for more than $2 trillion in volume, but adoption is growing at over 400% year over year, based on data from The Clearing House and FedNow. This divergence underscores both the scale of legacy systems and the urgency for banks to modernize.
As customer expectations shift toward instant, seamless transactions, banks that fail to enable real-time, digital-first payment experiences risk ceding the payment relationship to fintechs and third-party providers.
4. Stablecoins and tokenized deposits are back in the spotlight
Digital assets and embedded finance made a strong return to the agenda. Panelists emphasized the importance of handling customer disputes, managing compliance, and navigating AML/BSA considerations when working with tokenized deposits and stablecoins.
Banks are eager to explore these opportunities but remain cautious. The recommended approach: Partner with trusted vendors, engage peers for insights, and take stepwise actions to build capability while controlling risk.
5. Scale matters
The challenges for banks differ depending on size. Community banks under $5B wrestle with a “battle for focus,” while banks over $10B face a “battle for scale.” While M&A activity continues to shape growth opportunities for larger banks, community banks must focus on innovation and operational readiness to remain competitive. Regardless of size, the core message was consistent: innovation cannot wait – but it must be implemented strategically.
The Bottomline
AOBA 2026 made it clear that banks must act on AI and payments innovation now, but with careful planning and risk oversight. The future of banking is digital, fast, and smart, and those who begin their journey today will be best positioned for tomorrow.
For those ready to start, SRM is actively helping institutions navigate these opportunities, providing practical roadmaps for AI adoption, payment modernization, and digital asset integration.
Reach out now to see how we can help your institution activate what’s next.
Posted by Richard Whiddon & Bob Rohr on February 4, 2026.
