April 2, 2026—New research by American Banker, and developed in partnership with Fiserv, released last month shows that credit unions trail regional banks in digital payments maturity. Digital payments are no longer a future-state strategy for financial institutions — they are now a core competitive requirement—and digital maturity is the primary measure of an organization’s ability to leverage this critical technology. A gap between financial institution types matters because digital payments capability is not just a technology story; it is increasingly tied to member and customer experience, fraud prevention, operational efficiency, and the ability to compete in the market long term.
What the benchmark shows
This research is based on a survey of 381 respondents that found that digital payments maturity varies widely by financial institution type. The results are presented in five tiers, each representing a level of digital maturity based on 20 core capabilities, from basic bill pay to stablecoins and instant payments.
The average scores on the digital payments journey across all banks and credit unions were, in order by lowest tier to highest, 4% for “trailblazers,” 7% for “legacy operators,” 24% for “trendsetters,” 28% for “pragmatic adopters” and 37% for “progressive movers.” Regional banks ($10B+) top the maturity scores, which lead with greater representation as being at the forefront of digital payment innovation, offering comprehensive suite of modern capabilities, followed by community banks (<$10B). While credit unions are still in the early stages of digital development and offer a limited range of core capabilities, they are making measurable progress by prioritizing foundational offerings and planning near-term enhancements.
Why the gap matters
Institutions that advance their technological development and implementation with higher digital maturity directly correlating with stronger business outcomes. Community and regional banks, and credit unions all compete on trust, service, and relationships. But consumer expectations are changing quickly, and payments capability is increasing as a part of their digital banking requirements.
This survey found that higher digital maturity correlates with better business outcomes, and that the most important strategic drivers of digital investment are enhancing customer experience, improving fraud prevention, complying with regulation, and increasing efficiency. Respondents cited customer experience (CX) enhancement (57% critical/very important), risk/fraud prevention (52%), compliance (47%), and efficiency (45%) dominate priorities over pure innovation like facilitating real-time or instant payments (34%).
What institutions are prioritizing
The research shows that CX and risk management are driving digital payments investment decisions more than any single product race. Institutions are moving toward instant payments, stablecoin, and other next-generation capabilities. At the same time, legacy cores, integration complexity, vendor reliance, and cybersecurity risks remain the biggest barriers.
The road ahead
This study finds that for banks and credit unions success will hinge on how well they sequence investments that balance innovation with stability. Institutions that modernize payments, enhance interoperability, and streamline operations will be best positioned to deepen relationships and capture growth. As digital payments maturity becomes a defining advantage, treating payments as a strategic platform—not just infrastructure—will separate leaders from laggards in an increasingly connected, real-time financial ecosystem.
Editor’s note: This information is provided for educational purposes only and is the opinion and research of American Banker and was developed in partnership with Fiserv. The State of Digital Payments: What the 2026 Maturity Curve Means for U.S. Banks is available on demand on the American Banker website. Fiserv is a digital banking software partner of Vertifi Software.