What the 2024 Technology Survey Says About U.S. Banking
The 2024 Technology Survey takes a clear look at how banks in the United States are using technology—what’s working, what’s lagging, and what leaders say they need next. Conducted by Bank Director, the research underscores a simple truth: technology choices now shape how banks operate, compete, and grow.
How Banks Are Adopting Technology—And Why
Efficiency drives many of today’s decisions. Banks are leaning into tools that streamline work, reduce friction, and support compliance. Data analytics sits at the center of this push, helping teams improve day-to-day productivity and manage regulatory demands with more confidence. The survey found that 49% of banks prioritize operational efficiency as the main goal for their tech investments. Another 29% are focused on attracting and keeping customers, and 10% name securing low-cost deposits as their top objective. Different targets, one through line: make the bank run smarter so it can serve better.
How Technology Guides Investment Choices
With revenue under pressure in the current economy, every dollar put into technology has to pull its weight. Emily McCormick, Vice President of Editorial and Research at Bank Director, points out a revealing data point: only 21% of senior executives currently measure the return on their technology investments. Without that discipline, it’s harder to compare projects, set priorities, or adjust when assumptions miss the mark. Measuring impact isn’t a box to check—it’s the feedback loop that helps leaders decide what to fund next and what to sunset.
Technology Budgets Are Rising in 2024
One signal stands out: budgets are moving up. Three-quarters of the banks that participated report increasing technology spend for fiscal year 2024. Those dollars are flowing to practical, high-visibility areas—payments, digital account opening, and data analytics—where improvements show up in customer experience as well as in back-office speed. The message is straightforward: banks see digital transformation less as a one-off project and more as ongoing core work.
Why Customer Data Still Comes Up Short
Even with the buzz around analytics and artificial intelligence, many institutions still don’t have a complete, unified picture of their customers’ financial activity. The survey flags this as a critical gap. Greg Adelson, President and CEO of Jack Henry, highlights the role open banking solutions can play in providing a holistic view of account holder data. That fuller view helps banks personalize services, spot needs earlier, and identify likely customers for specific offerings—all while making the experience feel more cohesive.
Who Was Surveyed—and What They’re Seeing
The findings reflect the perspectives of 111 independent directors and senior executives at U.S. banks with less than $100 billion in assets. Together, their responses sketch a competitive market where bank-on-bank rivalry remains strong, but new pressures are building at the edges.
The Competitive Picture Is Shifting
Respondents say local banks (52%) and large regional banks (49%) continue to be significant competitors. At the same time, more leaders now see retail heavyweights as a factor. Twelve percent call out companies like Amazon and Walmart as a competitive force, up from 5% last year. The takeaway: expectations set outside banking don’t stay outside for long.
Where Execution Gets Hard: Integration and Talent
Turning plans into working systems remains a challenge. About 60% of respondents reported delays in completing technology initiatives, and 36% cited difficulty integrating new tools with existing systems. Delays like these can ripple—pushing out timelines, inflating costs, and slowing the benefits teams expected to see. Better scoping, tighter coordination, and clear ownership help, but they take time and practice to build.
Talent is another constraint. Only a quarter of banks employ developers or programmers in-house, signaling a gap in technical depth. That gap narrows as banks get larger: institutions with over $1 billion in assets are more likely to hire specialized tech talent. The practical effect is familiar—smaller teams often rely more on vendors, while larger ones can blend vendor platforms with internal builds.
Boards Are Leaning In
Technology isn’t just an IT topic anymore; it’s a board-level one. In the survey, 61% of executives say leveraging technology is a strategic priority for their boards. Half report having a technology expert on the board, and among those without such expertise, 29% say they want to add it. Governance that understands the work tends to ask sharper questions and set clearer guardrails—useful when stakes and spending are both rising.
About Bank Director and Jack Henry
Bank Director has provided research and insight to U.S. bank leaders since 1991, including board training, executive services, and reporting through its magazine. The aim is practical: help boards and management teams make informed decisions as the industry changes.
Jack Henry & Associates, Inc. (NASDAQ: JKHY) is a financial technology company that supports banks and credit unions with a broad set of integrated solutions. Drawing on 48 years of experience, the company serves over 7,500 clients as they work to innovate, compete, and meet account holder needs.
If there’s a thread running through the 2024 findings, it’s this: clarity beats volume. Clear goals, clear data, clear ownership—those are the levers that make all the new tools worth it.
Frequently Asked Questions
What does the 2024 Technology Survey reveal?
It shows where banks are concentrating their tech efforts and why. Leaders are prioritizing operational efficiency, customer acquisition and retention, and access to low-cost deposits. The survey also highlights gaps in ROI measurement, data completeness, project delivery, and technical staffing—areas that influence how quickly banks can turn strategy into results.
Why is data analytics important for banks?
Data analytics underpins productivity and compliance work, helping teams streamline operations and make decisions with more confidence. With stronger analytics, banks can personalize services, reduce manual effort, and better manage risk. That’s why it ranks among the top investment areas in 2024.
How have technology budgets changed for banks?
Budgets are trending up. Three-quarters of surveyed banks report higher technology spending in fiscal year 2024, with dollars flowing to payments, digital account opening, and data analytics. The intent is practical: improve customer experience and internal efficiency at the same time.
What challenges do banks face in technology deployment?
Execution is hard. About 60% reported delays in completing tech projects, and 36% cited integration problems with existing systems. Those hurdles can slow timelines and dilute impact, which is why clear project ownership and thoughtful sequencing matter.
How does the competitive landscape affect banks?
Banks still compete heavily with local and large regional peers, but pressure from major retailers is growing—12% of leaders now see companies like Amazon and Walmart as competitors, up from 5% last year. Customer expectations shaped outside banking carry over, raising the bar for speed, convenience, and value.
