The financial industry is at an inflection point. As outlined in the Cornerstone 2025 Banking Report, banks and credit unions must evolve into “Smarter Banks” by 2030, or risk irrelevance in a world rapidly reshaped by digital-first experiences and AI.

Traditional banking models, defined by rigid hierarchies, manual processes, and legacy technology, are ill-equipped to compete with agile, tech-driven challengers. As the report puts it plainly: “Banking is changing fast, and banks and credit unions that don't adapt run the risk of being left behind.

The Five Pillars of Smarter Banking

Cornerstone Advisors identifies five critical pillars that financial institutions must embrace to transform into Smarter Banks:

1. Hyper-Efficient

Efficiency today is strategic, not just operational. It’s about optimizing every layer of the institution, not just reducing costs.

According to the report:

• 51% of bank executives and 59% of credit union executives cite efficiency as their top concern
• High-performing institutions are projected to generate over $400,000 in revenue per employee by 2030
• Non-interest expense pressure requires efficiency ratios to fall into the low 50% range
• Digital self-service remains significantly underutilized

Leveraging automation and AI will be essential to reaching these efficiency targets and unlocking new levels of productivity.

2. Data-Driven

Banks hold vast amounts of valuable data, but struggle to turn it into actionable intelligence.

Key insights from the report:

• Over 50% say siloed data prevents real-time decision-making
• Just 6% of bank executives and 11% of credit union executives rate their data strategy as “very effective”

Breaking down data silos is the first step. That means integrating core banking systems, CRMs, and digital channels to create a unified source of truth. From there, institutions must empower employees with insights and implement AI-powered analytics to enhance performance and personalization.

3. Nimble

Agility is a key differentiator between high-growth banks and those falling behind. Traditional institutions often rely on lengthy planning cycles, while fintechs and neobanks iterate rapidly.

The report recommends adopting a “release mentality” akin to leading tech companies, where development is continuous, not episodic.

A standout example:
SouthState Bank used AI to quickly design and launch targeted marketing campaigns, generating $2.3 million in new deposits in just three weeks.

4. Differentiated

In an increasingly crowded marketplace, many institutions fail to distinguish themselves beyond rates and fees, eroding margins and brand equity.

But differentiation is possible, even for smaller banks.
Citizens Bank of Edmond, with just $400 million in assets, launched a digital bank tailored to military personnel, hosted local events that drove $24 million in economic development, and partnered with fintechs to expand its offerings.

These strategic choices elevate the bank’s brand well beyond its balance sheet.

5. Opportunistic

Staying static is no longer a viable strategy. Leading banks are actively pursuing opportunities, through M&A, product innovation, and strategic partnerships.

According to the report:

• 31% of banks aim to be active acquirers
• Institutions that act boldly are more likely to gain competitive advantages

Example:
Sunflower Bank’s acquisition of Pioneer Bank yielded $6.5 million in cost savings through strategic contract negotiations, while keeping customer satisfaction high.

The AI Imperative

Each of these five pillars, efficiency, data, agility, differentiation, and opportunism, is deeply intertwined with artificial intelligence. AI isn’t just another tool, it’s the connective tissue enabling the Smarter Bank.

As the report states:

“If organizations want to remain competitive, they must rethink their approach, pivoting faster, experimenting boldly, and continuously evolving to meet customer expectations.”

AI empowers institutions to:

• Automate routine processes and elevate staff to higher-value work
• Unify fragmented data into real-time, actionable insights
• Accelerate product development and market responsiveness
• Personalize customer experiences to build deeper relationships
• Identify and seize strategic growth and efficiency opportunities

The Road Ahead

Becoming a Smarter Bank by 2030 demands more than surface-level tech adoption. It requires a fundamental shift in how financial institutions operate, make decisions, and deliver value.

The journey begins now. Institutions that embrace these five pillars, and harness AI as a strategic enabler, won’t just survive. They’ll lead the next era of financial services.