The Human Niche in the Coming Banking Wars

2026 will always be remembered as the year when humans took a blow to their self- esteem as artificial intelligence reached a crazy fever pitch.

Models named Claude, Grok and Gemini stepped into the room and made us all feel a bit less than. Computer science students were told the jobs were disappearing. Marketers, writers and musicians were told their end was nearing. Companies begun using “AI productivity” as cover for layoffs. Suddenly, crappy AI content inundated social media, and worst of all, garish AI-generated images spread across LinkedIn like an aggressive fungus.

As 2026 draws to a close, the world is teeming in “superintelligence,” but it’s all begun to feel sterile, less real and a bit ridiculous. To quote Charles Bukowski, we are being “terrorized and flattened by trivialities” and “eaten up by nothing.”

And here in this scene of post-modern tech dystopia sits the community banker and the credit union leader. For them I have one loud and impassioned call to action: Keep the damn humanity in banking alive!

It’s obvious that successful banking leaders will take advantage of new AI capabilities while remaining eyes wide open about the risks. Yes, bankers should be eagerly adopting AI, and today they are clearly moving too slowly against edgier fintechs and payments innovators.

But as community bankers and credit unions dive into AI, there must be a strong, accompanying determination and intentionality to ensure their institutions do not devolve into antiseptic machines. At some point, removing too much “friction” also runs the risk of excising the important “soul” that a banking organization carries. A soul that serves an important purpose for the economy and communities.

Make no mistake—the big banks and large fintechs are going to overcorrect with AI. The efficiency gains are just too seductive, and they are hoping the average consumer and small business will simply accept AI-only banking like most accepted the value of digital banking. Community financial players should work to prove these behemoths dead wrong.

The great leaders of the future who build and run “smarter banks” will be the mavericks who successfully blend the technology with the targeted touches of humanity. Not humans as some risk-adverse backstop or checker to make sure AI doesn’t go wild. Rather, humans who keep banking warm, connected and contextual, and who demonstrate deep experiential knowledge.

By focusing on the details, these leaders will strike a balance that delivers great customer value:

• Technology can make the customer experience frictionless, but humans need to provide empathy and show urgency in important “moments of truth.” When consumers suspect an account takeover or a family member dies or they are rushing to close a home purchase, they don’t want a stupid bot, they want a smart, fierce, advocating real person.
• Technology can store a trove of information to give a 360 view of the client relationship and trigger customized workflows based upon specific events, but it’s humans who will go out into the market and community to proactively engage real people and spend the time knowing their goals, interests and families.
• Technology can synthesize a client’s financial situation and provide alerts, nudges and real-time financial advice, but a human relationship manager can be the coach and driving force to ensure clients actually turn advice into action.
• Technology can digitally market, reveal customer insights and manage GEO content for LLMs to grab, but humans can represent the brand and create distinct, “vibing” experiences with physical spaces, attention-grabbing events and cool merchandise.
• Technology can leverage social media, support efficient virtual meetings and provide online education, but humans must be the on-the-ground presence to create personal relationships and memorable human experiences. Humans must be the ones to build trust with centers of influence, help local community organizations and support important charities. Community banks and credit unions can succeed by always showing themselves in the community as committed professionals on a mission.

So Gonzo bankers, I will leave you with the table below summarizing how leaders can blend the technical and human aspects of banking to forge a “keep it real” niche.

As we approach the holidays, take the time to roll eyes a bit at the LLMs, the chatbots, the deep learning models and the self-driving Waymos in the intersection. They’re amazing digital friends, but lately they’ve been a little much.

At the end of what will be remembered as the AI explosion year, it’s a good time to:

• Crank a vinyl record to volume 11
• Read a physical book
• Throw a football in the yard
• Go see live music or a holiday play
• Hug friends and family with a favorite cocktail in your hand

Remember how damn amazing it is to be human and make a special commitment to keep the humanity in banking alive and kicking.

“Being human in the digital world is about building a digital world for humans.”
–Andrew Keen

Balancing Technology and Humanity in Banking