Banks may project stability and structure, but behind the scenes, many are grappling with the same technology and data headaches as everyone else in financial services. According to Bank Director’s 2025 Technology Survey, one in three bank executives say their biggest challenge is figuring out how to use the data they already have effectively.
Why It Matters: Even though community banks sit on mountains of customer data, many admit they’re still struggling to turn that information into meaningful insights, which is a problem that could slow their ability to compete, especially as artificial intelligence and automation reshape the industry.
- 56% of banks store data in the system or platform where it’s generated.
- 41% still rely on spreadsheets to manage business-line data.
- 39% use a data lake or warehouse to integrate data from multiple systems.
“Relying on spreadsheets is cumbersome and introduces risks around governance, data integrity, and compliance,” said Jennifer Geis of Jack Henry. Her colleague Lee Wetherington added that until banks aggregate their data into a single source of truth, “reliable analysis, automation, and AI” will remain out of reach.
The Bigger Picture: If you’re in fintech, collections, or lending and assume banks have seamless tech strategies, this report may be surprising.
- Only 18% of respondents said their bank measures return on investment for technology projects.
- 41% said a tech initiative failed to meet its objectives in the last 18 months.
- 33% said their institutions don’t allocate enough resources to technology or innovation, citing poor metrics and mid-level staffing shortages as key reasons.
Most banks also admit they’re not using analytics effectively across operations, marketing, or HR, though larger institutions report better outcomes. Half of all respondents said they use data analytics well in compliance, and 47% said the same for enterprise risk management.
By the Numbers
- 71% of banks increased their tech budgets in 2025, with a median 10% bump.
- 28% invested in data analytics platforms in the past 18 months, but among banks with more than $10 billion in assets, that jumps to 70%.
- 66% have drafted an acceptable use policy for AI, and 62% are experimenting with it in limited use cases.
