This is a paid press release. Contact the press release distributor directly with any inquiries.
Fraud Detection, Workflow Automation and Document Handling Are Community Financial Institutions’ Top AI Investment Priorities, MeridianLink Survey Finds
One in five CFIs currently have AI working inside in lending workflows
IRVINE, Calif., October 08, 2026–(BUSINESS WIRE)–Community banks and credit unions are moving beyond AI experimentation and focusing on practical applications that deliver measurable business value, according to the 2026 AI Priorities Benchmark Report from MeridianLink®, a leading provider of lending technology for community financial institutions.
-
Fraud detection was ranked a top AI priority by 66% of community banks and credit unions
-
Workflow and queue management (56%)and document collection and review (50%) are also high priorities for community banks and credit unions
-
Using AI to increase speed in workflows and the reduction of manual taskswas included in 46% of community banks’ and credit unions’ most-wanted lists
The research also highlights a significant implementation gap. While more than half of respondents said their institutions have provided employees with AI tools and discussed AI as part of strategic planning (57%), 31% have AI in self-service, chat, or support while only 21% say AI is being used in underwriting or risk review. Nineteen percent report AI automating lending tasks and 13% utilize AI to personalize outreach or offers.
“Community financial institutions need intelligence that solves real problems for their teams and their customers by reducing risk, eliminating manual work and improving operational efficiency,” said Larry Katz, CEO of MeridianLink. “The opportunity now is to move AI into the fabric of origination where it is embedded within the system of record that powers the most meaningful transactions. When intelligence is built into these workflows, it can deliver measurable value while helping institutions serve their customers better.”
Few community financial institutions have embedded AI into lending
MeridianLink’s research found that AI implementation remains in its early stages for many community financial institutions, as these institutions are still working to translate AI interest into measurable business outcomes. Only one in five (20%) institutions have reached an advanced level of AI adoption, where AI operates within core lending workflows. By contrast, 15% reported no AI-related activity during the previous year.
Leaders and Front-Line Teams Don’t Always Agree on AI Priorities
The survey uncovered notable differences between how executives and front-line lending professionals view AI investments.
More than half (57%) of executives and senior leaders said they would invest in document collection, compared with 28% of front-line lending and underwriting professionals. Conversely, 63% of front-line professionals said they would invest in fraud detection, compared with 46% of executives and senior leaders.
