Bank Director’s 2026 Technology Survey, sponsored by Jack Henry & Associates, shows community bank leaders are reassessing competitive threats from payments-focused fintechs and neobanks. The survey released by Bank Director found 58% of respondents cite fintech firms such as Block and PayPal as a top competitive threat, second only to local banks and credit unions at 61% and ahead of national and superregional banks at 48%.
The shift marks the first time survey respondents have ranked fintechs above big national banks. It arrives as payments-focused companies pursue bank charters: PayPal and Affirm Holdings filed applications for industrial loan companies in 2025, and more than a dozen firms—including Coinbase and Circle—have applied for national trust bank charters with the OCC. That regulatory path mirrors the conditional OCC approval of a national trust bank charter for Trump-backed World Liberty.
Competitive Pressure From Fintechs and Neobanks
Forty percent of bank leaders in the survey also point to neobanks such as Chime as a top threat, while 16% name crypto and stablecoin platforms. Emily McCormick, vice president of editorial and research at Bank Director, said leaders are feeling pressure from a growing field of competitors, particularly payments-focused fintechs and neobanks, and that almost a third perceive their payments offering as insufficient to meet customer needs.
The findings point to a widening competitive gap in payments, where smaller institutions face both established local rivals and digital-first platforms with lower customer acquisition costs.
What the Regulatory Landscape Means for Banks
The stronger fintech threat perception follows a regulatory environment that has made it easier for nonbank payments companies to seek charters and expand into bank-like services. The GENIUS Act, passed in July 2025, set a federal framework for payment stablecoins, and the OCC’s openness to national trust bank charters has drawn interest from crypto and fintech firms.
For traditional bank boards, the survey suggests technology planning may need to move beyond core modernization toward payments capability, digital asset strategy, and responses to fintech competitors. The next watch point is how many charter applications convert into approved entrants and how quickly community banks adjust their product roadmaps.
