Report highlights how modern core capabilities can streamline onboarding, unlock real-time data and scale fintech partnerships.
HUTCHINSON, KS., Sept. 15, 2026 — Cornerstone Advisors today released Uncaged: How the Right Core Enables Community Bank Growth, a new report examining why some community banks grow while others, running similar strategies in similar markets, stall out.
Commissioned by DCI, the report draws on interviews with community bank executives across asset sizes, markets and growth strategies. It concludes that a bank’s core processor is either an engine for growth or a cage that quietly limits it, often before banks recognize the impact.
The report cites Cornerstone’s annual banking research, which found that a lack of data and operational metrics was a top technology challenge for 48% of banks this year, up from 27% the year before. “A bank’s core system houses years of transactional history. But if the bank can’t access that information in real time, such as when a customer is most likely to leave or most ready to buy, it has no way to act on that knowledge,” said Elizabeth Gujral, a director at Cornerstone Advisors and one of the report’s authors.
“Banks fail not because they lack technology, but because they lack strategy,” said Chris Davis, chief operating officer of DCI and a former bank executive interviewed for the report. “But strategy only gets a bank so far if the core cannot move fast enough to support it.”
Account Opening Is Where the Growth Story Ends Before It Starts
The report’s clearest finding sits at the top of the funnel. Digital account opening abandonment exceeds 50% once an application takes longer than three to five minutes, and researchers estimate that roughly 60% of prospects are lost to friction before opening an account. Nearly a third of community banks still rely on manual processing for core onboarding, even as fintechs captured 56% of new checking and payments account openings in 2025, up from 49% the year before.
“For a bank running on a core that cannot support real-time digital onboarding, that is not a minor conversion problem. It is a growth strategy that never gets off the ground,” Davis said.
The report also finds that nearly a third of midsize banks still lack infrastructure to expose or manage open APIs securely, even as real-time data access becomes essential for fraud detection, deposit retention and AI-driven tools. Cornerstone frames API connectivity as a philosophy: A core provider either believes a bank’s data belongs to the bank, or it does not.
Fintech Partnerships Only Work If the Core Can Support Them
The pressure behind fintech partnerships for community banks is not easing. Cornerstone research shows 80% of bank executives now consider big fintechs a significant threat, up from 47% in 2023. “A core that requires middleware or a program manager turns every new fintech opportunity into a negotiation instead of an integration,” Gujral said.
“Banks can build a national digital presence,” Davis said, “but that only works if the core lets the bank see what is happening and act on it in real time, not after the fact.”
The full report is available as a free download here.
About Cornerstone Advisors
For over 20 years, Cornerstone Advisors has delivered insights, strategies and data-driven solutions to build smarter banks, credit unions and fintechs. From technology selection and implementation to contract negotiations, performance improvement, vendor management, strategic planning, and merger and acquisition services, Cornerstone combines expertise with research and proprietary data to help institutions thrive. For more information, visit www.crnrstone.com
About DCI
DCI develops iCore360 core banking software, iCoreGO digital banking and fintech processing solutions for community financial institutions nationwide. Privately owned by community banks, DCI also provides private ATM network and card management, FrontLine teller software, custom data analytics, risk and vendor management, and more. For more information, visit www.datacenterinc.com or contact info@datacenterinc.com.
DCI Media Contact:
Jesse Tosten, Marketing Director
DCI
620-694-6773
jtosten@datacenterinc.com
Cornerstone Media Contact:
Cate Pitts, Editorial Director
Cornerstone Advisors
(480) 425-5203
cpitts@crnrstone.com
