OCC Reviews Core Banking Services Market and AI’s Potential to Help Small Banks

Core banking service providers supply back-end systems for account processing, payments and compliance. Small community banks often face unfavorable contract and service terms because switching costs are high and their bargaining power is limited. The Office of the Comptroller of the Currency is therefore examining the market’s structure, which could affect whether small banks can control technology costs and compete with larger institutions.

As of July 20, 2026, Acting Comptroller of the Currency Jonathan Gould said the OCC was engaging with banks and core service providers as it reassessed potential reforms. The agency has not disclosed the amounts involved, a completion deadline or specific rules. Gould also said AI could help resource-constrained community banks improve operational efficiency, compliance and product capabilities.