Bank technology

While banks are trying to advance, regulators are lagging, with outdated rules failing to address today's technological and digital asset realities. It's time for a new paradigm in banking regulation.

Financial institutions have trouble pinning down a common definition of AI and figuring out which of their processes incorporate the technology. That can lead to trouble with regulators.

The siren song of greater regulatory uniformity will lead the industry to disaster, as the kind of innovation that benefits consumers is stifled.

In this edition of American Banker's news quiz, test yourself on the latest items covering FedNow's progress since launch, the merger between Capital One Financial and Discover Financial Services and more.

Deanne Zettler is taking on a newly created role at PCI SSC; Wisconsin's Landmark Credit Union is opening a new, tech-forward branch; Mo Assomull is named co-head of investment banking at Morgan Stanley; and more in this week's banking news roundup.

Financial services supervisors should revisit the concept of regulatory sandboxes. Doing so would allow fintechs to gain needed experience in the world of banking, while fostering innovation.

Bankers and financial services professionals should be monitoring the rollout of the EU Digital Identity Wallet initiative, as it signals changes likely to arrive in the U.S.

The basics of good banking — a strong balance sheet, customer service and solid risk analysis — will always be important. But in the future, technological competence will be the difference between the sector's winners and losers.

The real test of the value of investments in artificial intelligence and other tech upgrades is the generation of measurable value across a bank's lines of business.

The head of data and digital at Ally Bank came up with protective measures governing the use of generative AI and organized "AI Days" for employees to learn about Ally's progress.

All cultures have explicit and implicit biases. Preventing discrimination when large language models are involved starts with using high-quality human-curated data and text.

Most banks are starting their generative AI experiments with closed-source models before progressing to open source. For some, the ultimate goal is to be model-agnostic.

Integrating artificial intelligence into banking operations needs to be done with a clear business purpose in mind, and the articulation of that purpose needs to come straight from the top of the organization.

There is fundamental work involved in laying a modern data foundation and adopting a flexible, data-driven, cloud-based IT architecture suitable for AI implementation. Most banks aren't there yet.

The financial services company has found that engineers report higher satisfaction and save time when using a copilot to assist with coding.

Branches won't succeed without significant investment in mobile and in-branch technology; but failing to invest in bankers themselves is just as big a problem.