Opinions

The headlong rush to apply AI to all sorts of internal systems runs the risk of damaging consumer trust in the industry. Banks should look to their history and be deliberate about how they integrate AI into their systems.

Banks are deploying extremely powerful AI systems but expecting generalist employees to operate them safely and consistently without redesigning workflows around the technology. That virtually guarantees a bad outcome.

Doubling down on what has worked in the past — especially if it's still working now — may inadvertently trap banks into business models ill-suited for the future. Smart bankers make room for change before it is forced on them.

As artificial intelligence increasingly plays a role in the regulation of banks and other financial services firms, regulators need to be certain that these new systems aren't importing old biases into modern oversight.

When even a savvy expert in payments systems can't efficiently manage the transfer of funds to relatives in a crisis zone, it demonstrates that the system is failing us. We can and must do better.

The proliferation of so-called "Drainer-as-a-Service" platforms that allow low-skilled attackers to execute sophisticated fraud schemes present a challenge to banks as cryptocurrencies go more mainstream.

The "exorbitant privilege" the U.S. has long enjoyed because of the dollar's status as the world's reserve currency would be supercharged if global adoption of stablecoins leads to greatly increased demand.

It won't be long before bank customers can ask an AI agent to optimize their returns on idle cash. When it happens, banks' net interest income is going to come under direct threat.

As tokenization increasingly brings instant settlement to transactions, the liquidity buffer that batch settlement has provided for decades is going to shrink and then disappear. Banks will need to rethink liquidity management.

While they may look like a tool for reinforcing customer's connection to their banks, loyalty coalitions present serious risks if they are not constructed properly and monitored continuously.