The 1996 season arrived with considerable optimism within Benetton. Alesi in particular had long been expected by many observers to challenge for a world title, a prospect first raised when he signed for Ferrari in 1991. Berger, meanwhile, was returning to Benetton for his second stint, having previously driven for the team in 1986. Both drivers were highly experienced, and with the constructors' and drivers' titles freshly won, the team appeared well-positioned.
The B196 was a direct evolution of the B195 rather than a clean-sheet design. This proved problematic: the car had been built around Schumacher's distinctive driving style, characterised by his preference for an aggressive, rotating car and his ability to exploit high-rear-downforce setups. Alesi and Berger found the car difficult to drive to its potential from the outset, never fully extracting what it was capable of.
The car also represented a historical first for Benetton, becoming the first car the team raced under Italian nationality following a change in registration tied to the fashion brand's Italian headquarters. Former Benetton race driver Alessandro Nannini — absent from Formula One since a 1990 helicopter accident severed his right arm — drove the car in testing, six years after his career-ending crash, alongside Vincenzo Sospiri.
The most painful moments of the season were victories that slipped away. Alesi led the Monaco Grand Prix until a suspension failure ended his race, and Berger commanded the German Grand Prix before his engine expired three laps from the finish. These near-misses meant Benetton went the entire year without a race win for the first time since 1988 — an eight-season run ended.
The team consistently scored points and podiums but could not mount a sustained championship challenge against the dominant Williams FW18 of Damon Hill or the resurgent Ferrari F310. At the final race of the season in Japan, Benetton slipped from second to third in the Constructors' Championship as Ferrari overtook them: Alesi crashed out early and Berger also made errors.
Journalist Joe Saward argued in his seasonal review that had Schumacher remained at Benetton and driven the B196, the car would have won races and likely outperformed the three victories Schumacher managed that year in the Ferrari F310.
The B196 featured a significantly reworked livery compared to the B195, using a white base with blue and green elements. New sponsors Compaq, Kingfisher, and Hype Energy joined the existing Mild Seven tobacco arrangement. Fondmetal sponsored the team but the car ran BBS wheels. The Mild Seven logos were omitted at the French, British, and German Grands Prix in compliance with tobacco advertising restrictions in those markets; in France, the Kingfisher logo was replaced by the UB Group branding.
The B196 closed the Schumacher chapter of Benetton's history and began a more uncertain period for the team. Without the driver who had defined its recent success, the inherent qualities of the car — competitive but tailored to a departed champion — were never fully unlocked. The 1996 season marked the beginning of Benetton's gradual decline before the team's eventual acquisition by Renault.