What Community Banks & Credit Unions Should Budget for in 2026

As the temperatures begin to drop, many financial institution leaders are shifting their focus to the year ahead. As planning begins in earnest, the challenge lies in navigating a growing array of new technologies — while prioritizing the services that truly differentiate your bank or credit union and drive sustainable growth.

In this article, we highlight the top priorities banks and credit unions should weigh as they build budgets and strategic plans for the coming year. 

Expanding Into New Areas

One significant trend shaping the financial landscape is the exodus of big banks from rural communities — leaving behind banking deserts. This presents a golden opportunity for community banks and credit unions to expand to new communities.

However, expansion no longer requires building costly brick-and-mortar branches. Thanks to modern technology, financial institutions can deliver services more efficiently and cost-effectively through alternative service-delivery models, such as:

1. Interactive Teller Machines (ITMs): These next-generation ATMs allow consumers to interact with a live teller via video — extend teller hours, reduce staffing costs, and bring the branch experience to new communities.

2. Expanding ATM Access: Strategically placed branded ATMs, such as drive-thru ATMs in parking lots of busy businesses or retail stores, can play a crucial role in serving the community’s basic banking needs and attract new account holders.

   
   

3. Smaller, Modern Modular Branches: Affordable, compact, prefabricated modular branches are gaining momentum in the U.S. after widespread adoption in Europe. They offer a quick and efficient way to market for financial institutions moving into new areas or those wanting to cut costs and close traditional branches.

   
   

4. Digital Banking Services: Beyond the mobile app, technology advances now allow banks and credit unions to offer digital banking solutions that include live video, chat and virtual assistants’ consumers can access through QR codes.

   
   

By incorporating these technologies, community banks and credit unions can extend their geographic footprint without the overhead of traditional branches. And partnering with a trusted ATM outsourcing provider makes it easier to expand ATM networks, deploy ITMs, and integrate digital-banking solutions — all while keeping operations efficient and staff focused on service and growth.

Enhancing Branch Efficiency with Teller Cash Recyclers

For banks and credit unions maintaining physical branches, Teller Cash Recyclers (TCRs) have become a must-have technology investment for improving both efficiency and security. TCRs offer several benefits such as improved cash security, increased accuracy and speed, and freeing up branch staff to focus on personalized service and cross-selling products and services.

A 2025 report from ATM Marketplace notes that more than 60% of new branch designs now include cash automation equipment, underscoring how widespread adoption has become.

Integrating Advanced Interactive Technologies

To stay competitive, banks and credit unions should consider moving beyond mobile apps and ITMs to deliver richer, more interactive digital experiences. Adopting the right mix of digital tools can strengthen engagement and brand loyalty.

Virtual Assistants provide account holders with easy access to get answers to common questions, manage accounts and  24/7. These tools enable customers to get instant answers to common questions, manage accounts, and even initiate transactions 24/7 — all without increasing branch or call-center workloads.

QR Code Marketing can help financial institutions build faster, more seamless connections with existing and potential account holders. These simple yet powerful tools can instantly direct consumers to targeted product pages, online applications, or promotional offers — making it easy to explore services, access special deals, or complete sign-ups in just a few clicks.

However, QR codes extend far beyond marketing applications. They can also connect users directly to virtual branch platforms that deliver ITM-level functionality — including live video calls, secure chat, and multilingual translation services — all without the substantial capital investment required for physical branch infrastructure.

Diversifying Income Streams

As interest rates remain high, it’s increasingly important for financial institutions to diversify revenue sources beyond traditional interest income. Partnering with trusted vendors that provide merchant services, smart safes, and ATM programs for business customers can unlock new, recurring revenue streams while expanding your institution’s portfolio. These partnerships not only help attract new business accounts and strengthen existing relationships, but they also deliver added value to commercial clients — all without creating additional workload for staff.

Leading the Way with New Technologies

Ultimately, the key to effective budgeting lies in aligning financial decisions with your institution’s core mission — serving the community. By balancing traditional services with innovative technologies that drive new income, innovation and inclusion, financial institutions can do more than keep pace with change — they can lead the way in delivering the services today’s consumers want and tomorrow’s communities will rely on.

Need Assistance Getting Ready for the New Year? 

Our team can help you identify and implement new technologies that drive growth, improve efficiency, and strengthen relationships.

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Alicia Blanda is a seasoned marketing and financial-services consultant with more than 25 years of experience helping banks, credit unions, and fintechs grow through strategic branding, technology integration, and performance-driven marketing. Her expertise spans the ATM, payments, and financial-services industries.

📩 Schedule your consultation alicia@blandamarketing.com