Five Themes from the American Savings Foundation Distinguished Lecture Series
1- Bank-Fintech Collaboration Continues to Grow
The banking industry is evolving, and traditional banks and fintechs are finding new ways to collaborate to achieve mutual success. Previously viewed as competitors, these two industries are exploring partnerships to create innovative solutions for their customers. The goal is to leverage the strengths of both industries to drive growth and profitability. Fintechs bring agility, innovation, and a customer-centric approach, while banks offer security, regulatory expertise, and access to capital. The collaborations aim to create more opportunities for customers to access financial services and increase competition, resulting in improved products and services for consumers.
2- Increased Use of Data Analytics and AI-
The use of artificial intelligence (AI) and ChatGPT is gaining traction in the banking industry. Although banks have vast amounts of data, they have been slow to adopt AI and leverage their data. However, as the technology matures, more banks are beginning to harness their data to create customer-centric solutions. ChatGPT, a powerful natural language processing tool, is being used to improve customer service through chatbots and personal assistants. AI-powered fraud detection systems are also being deployed to detect and prevent fraud. The use of AI and ChatGPT will continue to be a game-changer in the banking industry, allowing banks to provide more personalized services and improve efficiency.
3- Use Cases for Blockchain Beyond Crypo-
The adoption of blockchain technology in community banking is another trend that is gaining momentum. Blockchain offers secure, real-time payments, enhanced cybersecurity, and reduced transaction costs. The technology is seen as a game-changer for community banks that struggle to keep up with large banks' digital offerings. Community banks are also exploring blockchain's potential to streamline processes such as loan origination and asset management. The adoption of blockchain technology will allow community banks to improve customer experience, lower costs, and compete with larger banks. As the technology matures, it is expected to have an even greater impact on the banking industry.
4- Data and Expected Loss Models-
Automation and the use of data in small business and commercial lending is also transforming the banking industry. The use of expected loss scored models is allowing banks to approve more loans while reducing risk. The models help banks to make better lending decisions, resulting in increased profitability and reduced risk. Automation is also allowing banks to streamline lending processes, reducing the time it takes to approve loans. As a result, banks can offer quicker loan processing times, making it easier for small businesses to access credit. This will have a significant impact on the economy, as small businesses are the backbone of the U.S. economy.
5- Talent Acquisition, Development and Retention-
Finally, talent acquisition is another trend that is changing the banking industry. Banks are exploring unique ways to develop talent and/or accessing pools of SME labor where they cannot find talent. Banks are investing in upskilling their workforce and offering specialized training programs to attract top talent. They are also exploring new ways to recruit talent, such as partnering with universities, offering apprenticeships, and creating innovative internships. As the banking industry evolves, it will require a diverse and skilled workforce to drive growth and profitability. By investing in talent development and recruitment, banks can ensure they have the resources to compete in a rapidly changing landscape