Small Banks Are Lowkey Winning the AI Race

Ok, wait, because this is actually insane. Everyone thinks big banks are the AI main characters, but lowkey, it's the small and mid-size players that are eating in the AI game. How? Two words: SaaS adoption.

SaaS Slays in Banking

So, here’s the tea. About 78% of banks have jumped on SaaS-based core banking platforms. And by late 2026? SaaS and hosted deployment models are expected to own around two-thirds of the core banking scene. No cap. This isn't just some random trend. It's a whole structural shift. These small and mid-size banks? They've been quietly setting the stage for enterprise AI with all that SaaS action.

Big banks, bless their hearts, are stuck with their massive, complex systems trying to keep up. Meanwhile, smaller banks have this sleek, standardized setup just waiting to be supercharged with AI. It's like they're already halfway there, while the big guys are still figuring out the basics.

Headless Architecture Is Here for It

Enter headless architecture. It's not just about decoupling user experiences or messing with APIs. It's about making these operational definitions portable. Like, all those fancy definitions that used to be locked in individual systems? Now they can cruise across different workflows.

Here's where it gets juicy: platforms like nCino, Salesforce, and ServiceNow are exposing business services through these composable APIs. It's like giving these small banks a cheat code to AI. Why should we care? Because it's changing the whole freaking equation.

The Secret Sauce: Semantic Control Plane

Now let's talk about the Semantic Control Plane. It's the unsung hero that makes sure everyone's on the same page. Like, how can you've an AI running the show if 'customer status' means something totally different depending on where you look? This plane gets everyone speaking the same language before AI takes the wheel.

So, if you're a small bank, or even just banking with one, this is your moment. You're way closer to the AI big leagues than the industry gives you credit for. Time to start flexing those AI muscles.