How One Bank Puts Agile Management Techniques Into Action

When David Mansfield took the reins as CEO of Provident Bancorp six years ago, he could see that a change was needed, and that required new thinking.

“We were a typical community bank trying to be everything to everybody,” says Mansfield. He transformed the $1.1 billion bank based in Amesbury, Massachusetts, into a “true commercial bank” to the small and mid-sized companies that form the “backbone” of the community.

We’re trying to offer products and services that are not commodities, where we can differentiate ourselves, add value and get paid for it,” says Mansfield. “The customer’s appreciative, because they’re getting a product or service that really isn’t available to [small and mid-sized companies]” — like specialty services usually offered by large regional and money-center banks to their corporate clients.

To accomplish that, he needed employees who weren’t afraid to shake things up. He also needed to develop a culture and tools that facilitated collaboration within the organization. To do this, he borrowed managerial techniques from the technology sector by adopting Lean and Agile techniques.

Teams within the bank using these methods identify how to improve processes and workflows. “We have had some really amazing success stories,” says Mansfield.

Lean management aims for continual, incremental improvement. Quick “daily huddles” in the bank help staff focus on the day. In these 15-minute standup meetings, employees provide a quick update about progress on key projects and share any obstacles they’re facing so these issues can be addressed.

Mansfield credits Lean methods for improving interdepartmental dynamics. “One of the major premises of Lean [is that] it’s all about the customer experience, and we truly believe within this organization that everybody has a customer,” he says. Loan officers and branch staff directly interact with the customer, but support staff have a customer, too: their colleagues serving the customer. “What I love about our IT group is, they believe that wouldn’t happen unless they serve their customer, which is that group of people.”

Provident Bancorp still incorporates Lean thinking, but started shifting to Agile techniques late last year, upon hiring Joy Curth as senior information officer. Curth’s experience includes a stint in application development at Intuit, and she understands Agile methods. The principles of Lean and Agile are similar; both seek to create workflow efficiencies and promote iterative development.

Curth doesn’t have a banking background, which appealed to Mansfield. “We’re trying to do some different things, really leverage technology, and the traditional bank chief information officer just is not what I was looking for,” he says. As the bank weighs partnerships with technology companies, “she’s not only able to speak their language, but she’s able to recruit people to join her team [and] really professionalized our project management team” due to her Agile background.

Adoption of Agile has been project based, and the bank’s first project under the methodology was integrating ResX Warehouse Lending, a warehousing lending division that it acquired in January from $58.6 billion People’s United Financial, based in Bridgeport, Connecticut.

“Dave came to us and announced we were going to do an acquisition, and we were able to complete that project in [roughly] 8 weeks,” says Curth. “A whole acquisition of staff, technology, contracts — that was pretty expedited and showed that we were able to do that without a hitch.” The project’s success encouraged bank leaders to roll out the approach for most key projects.

“Even the bank we were doing the acquisition from [was] really impressed with our team,” says Mansfield. “We really drove it; it was an everyday meeting, what’s the status, how to keep things going.”

Agile is an ongoing journey that Mansfield believes represents the “next evolution” for project management at Provident. He’s a big reader, and one of his favorites is “Good to Great: Why Some Companies Make the Leap…And Others Don’t,” by Jim Collins.

“There’s a concept he uses: Shoot bullets first,” says Mansfield. Shooting bullets means pursuing attempts that represent a low risk and require minimal resources. If it works, you recalibrate and then “shoot the cannonball when you’re ready,” he says — using your company’s resources to make a big move based on those earlier, iterative attempts.

Another one that he calls a “gut check” on Lean techniques is “Jumpstart Your Service Revolution: Transform Your Company’s DNA and Thrive in an Age of Disruption,” by Thomas Schlick.

By adopting Lean and Agile techniques, Mansfield is creating a bank that differentiates itself in the market. Curth adds that employees enjoy working there. It’s what drew her to the bank. “When you implement this type of culture, your morale is high, and there really is an energy that is compelling and exciting,” says Curth.

Recommended Reading from David Mansfield, Provident Bancorp

How Umpqua Bank Is Navigating the Digital Transformation

Writers look for interesting paradoxes to explore. That’s what creates tension in a story, which engages readers.

These qualities can be hard to find in banking, a homogenous industry where individuality is often viewed skeptically by regulators.

But there are exceptions. One of them is Umpqua Holdings Co., the biggest bank based in the Pacific Northwest.

What’s unique about Umpqua is the ubiquity of its reputation. Ask just about anyone who has been around banking for a while and they’re likely to have heard of the $29 billion bank based in Portland, Oregon.

This isn’t because of Umpqua’s size or historic performance. It’s a product, instead, of its branch and marketing strategies under former CEO Ray Davis, who grew it over 23 years from a small community bank into a leading regional institution.

Umpqua’s branches were particularly unique. The company viewed them not exclusively as places to conduct banking business, but instead as places for people to congregate more generally.

That strategy may seem naïve nowadays, given the popularity of digital banking. But it’s worth observing that other banks continue to follow its lead.

Here’s how Capital One Financial Corp. describes its cafes: “Our Cafés are inviting places where you can bank, plan your financial journey, engage with your community, and enjoy Peet’s Coffee. You don’t have to be a customer.”

Nevertheless, as digital banking replaces branch visits, Umpqua has had to shift its strategy — you could even say its identity — under Davis’ successor, Cort O’Haver.

The biggest asset at O’Haver’s disposal is Umpqua’s culture, which it has long prioritized. And the key to its culture is the way it balances stakeholders.

For decades, corporations adhered to the doctrine of shareholder primacy — the idea that corporations exist principally to serve shareholders. The doctrine was even formally endorsed in 1997 as a principle of corporate governance by the Business Roundtable, an organization made up of CEOs of major U.S. companies.

Umpqua, on the other hand, has focused over the years on optimizing rewards to all its stakeholders — employees, customers, community and shareholders — as opposed to maximizing the rewards to just one group of them.

“We’re not the most profitable or highest total shareholder return bank in the country,” O’Haver says. “We have to give some of that up because of the things we do. If we’re going to innovate, if we’re going to have programs that give back to our employees and our communities, it costs money to do that. But we think that’s the right thing to do. It attracts customers and great quality associates who bring passion to what they do.”

The downside to this approach, as O’Haver points out, are lower shareholder returns. But the upside, particularly now, is that this philosophy seeded a collaborative culture that can be leveraged to help navigate the digital transformation.

Offering digital distribution channels isn’t hard. Any bank can pay third-party partners to build a mobile application. What’s hard is seamlessly blending these channels into a legacy ecosystem once dominated by branches and in-person service.

“How are you going to get your people to actually embrace new technology and use it? How are they going to sell it if they don’t feel like it’s valuable for them?” O’Haver says. “Yeah, it’s valuable for your shareholders because it’s cheaper. But if you’re not counterbalancing that, how are you going to get your associates to embrace it and sell it to customers? That’s more important than the product itself, even in financial terms. If they don’t embrace it, you will fail.”

This, again, may seem like a trite way to approach business. Yet, Umpqua’s more balanced philosophy towards stakeholders has proven to be prescient.

Last year, the Business Roundtable redefined the purpose of a corporation. No longer is it merely to maximize shareholder value; its purpose now is to fulfill a fundamental commitment to all its stakeholders.

Leading institutional investors are following suit. The CEOs of BlackRock and State Street Global Capital Advisors, the two biggest institutional investors in the country, are mandating that companies jettison shareholder primacy in favor of so-called stakeholder capitalism.

In short, while Umpqua’s decades-long emphasis on branches may seem like a liability in the modern age of banking, the culture underlying that emphasis may prove to be its greatest asset if leveraged, as opposed to lost, in the process of bridging the digital divide.

Staying Relevant In The Payments Revolution

A tremendous level of disruption is occurring in the payments space today — and few banks have a strategy to combat this threat, according to Michael Carter, executive vice president at Strategic Resource Management. In this video, he explains how smart home technology like Alexa and Google Home is changing how consumers interact with their financial institutions. He also outlines three tactics for banks seeking to achieve top of wallet status.

  • Today’s Payments Landscape
  • Technologies to Watch
  • How to Keep Wallet Share
  • Threats to Community Banks

 

On the Docket of the Biggest Week in Banking

Think back to your days as a student. Who was the teacher that most inspired you? Was it because they challenged your assumptions while also building your confidence?

In a sense, the 1,312 men and women joining me at the Arizona Biltmore in Phoenix for this year’s Acquire or Be Acquired Conference are in for a similar experience, albeit one grounded in practical business strategies as opposed to esoteric academic ideas.

Some of the biggest names in the business, from the most prestigious institutions, will join us over three days to share their thoughts and strategies on a diverse variety of topics — from lending trends to deposit gathering to the competitive environment. They will talk about regulation, technology and building franchise value. And our panelists will explore not just what’s going on now, but what’s likely to come next in the banking industry.

Mergers and acquisitions will take center stage as well. The banking industry has been consolidating for four decades. The number of commercial banks peaked in 1984, at 14,507. It has fallen every year since then, even as the trend toward consolidation continues. To this end, the volume of bank M&A in 2019 increased 5% compared to 2018. 

The merger of equals between BB&T Corp. and SunTrust Banks, to form Truist Financial Corp., was the biggest and most-discussed deal in a decade. But other deals are worth noting too, including marquee combinations within the financial technology space.

In July, Fidelity National Information Services, or FIS, completed its $35 billion acquisition of Worldpay, a massive payment processor. “Scale matters in our rapidly changing industry,” said FIS Chairman and Chief Executive Officer Gary Norcross at the time. Fittingly, Norcross will share the stage with Fifth Third Bancorp Chairman and CEO Greg Carmichael on Day 1 of Acquire or Be Acquired. More recently, Visa announced that it will pay $5 billion to acquire Plaid, which develops application programming interfaces that make it easier for customers and institutions to connect and share data.

Looking back on 2019, the operating environment proved challenging for banks. They’re still basking in the glow of the recent tax breaks, yet they’re fighting against the headwinds of stubbornly low interest rates, elevated compliance costs and stiff competition in the lending markets. Accordingly, I anticipate an increase in M&A activity given these factors, along with stock prices remaining strong and the biggest banks continuing to use their scale to increase efficiency and bolster their product sets.

Beyond these topics, here are three additional issues that I intend to discuss on the first day of the conference:

1. How Saturated Are Banking Services?
This past year, Apple, Google and Facebook announced their entry into financial services. Concomitantly, fintechs like Acorns, Betterment and Dave plan to or have already launched checking accounts, while gig-economy stalwarts Uber Technologies and Lyft added banking features to their service offerings. Given this growing saturation in banking services, we will talk about how regional and local banks are working to boost deposits, build brands and better utilize data.

2. Who Are the Gatekeepers of Customer Relationships?
Looking beyond the news of Alphabet’s Google’s checking account or Apple’s now-ubiquitous credit card, we see a reframing of banking by mainstream technology titans. This is a key trend that should concern bank executives —namely, technology companies becoming the gatekeepers for access to basic banking services over time.

3. Why a Clear Digital Strategy Is an Absolute Must
Customer acquisition and retention through digital channels in a world full of mobile apps is the future of financial services. In the U.S., there are over 10,000 banks and credit unions competing against each other, along with hundreds of well-funded start-ups, for customer loyalty. Clearly, having a defined digital strategy is a must.

For those joining us at the Arizona Biltmore, you’re in for an invaluable experience. It’s a chance to network with your peers and hear from the leaders of  innovative and elite institutions.

Can’t make it? We intend to share updates from the conference via BankDirector.com and over social media platforms, including Twitter and LinkedIn, where we’ll be using the hashtag #AOBA20.

Winners Announced for the 2019 Best of FinXTech Awards


Awards-9-10-19.pngBanks face a fundamental paradox: They need to adopt increasingly sophisticated technology to stay competitive, but most have neither the budget nor the risk appetite to develop the technology themselves.

To help banks address this challenge, a legion of fintech companies have sprung up in the past decade. The best of these are solving common problems faced by financial institutions today, from improving the customer experience, growing loans, serving small business customers and protecting against cybersecurity threats.

To this end, we at Bank Director and FinXTech have spent the past few months analyzing the most innovative solutions deployed by banks today. We evaluated the performance results and feedback from banks about their work with fintech companies, as well as the opinions of a panel of industry experts. These fintechs had already been vetted further for inclusion in our FinXTech Connect platform. We sought to identify technology companies that are tried and true — those that have successfully cultivated relationships with banks and delivered value to their clients.

Then, we highlighted those companies at this year’s Experience FinXTech event, co-hosted by Bank Director and FinXTech this week at the JW Marriott in Chicago.

At our awards luncheon on Tuesday, we announced the winning technology solutions in six categories that cover a spectrum of important challenges faced by banks today: customer experience, revenue growth, loan growth, operations, small business solutions and security.

We also announced the Best of FinXTech Connect award, a technology-agnostic category that recognizes technology firms that work closely with bank clients to co-create or customize a solution, or demonstrated consistent collaboration with financial institutions.

The winners in each category are below:

Best Solution for Customer Experience: Apiture

Apiture uses application programming interfaces (APIs) to upgrade a bank’s digital banking experience. Its platform includes digital account opening, personal financial management, cash flow management for businesses and payments services. Each feature can be unbundled from the platform.

Best Solution for Revenue Growth: Mantl

MANTL developed an account-opening tool that works with a bank’s existing core infrastructure. Its Core Wrapper API reads and writes directly to the core, allowing banks to set up, configure and maintain the account-opening product

Best Solution for Loan Growth: ProPair

ProPair helps banks pair the right loan officer with the right lead. It integrates with a bank’s systems to analyze the bank’s data for insights into behaviors, patterns and lender performance to predict which officer should be connected with a particular client.

Best Small Business Solution: P2BInvestor

P2Binvestor provides an asset-based lending solution for banks that helps them monitor risk, track collateral and administer loans. It partners with banks to give them a pipeline of qualified borrowers.

Best Solution for Improving Operations: Sandbox Banking

Sandbox Banking builds custom APIs that communicate between a bank’s legacy core systems like core processors, loan origination, customer relationship management software and data warehouses. It also builds APIs that integrate new products and automate data flow.

Best Solution for Protecting the Bank: Illusive Networks

Illusive Networks uses an approach called “endpoint-focused deception” to detect breaches into a bank’s IT system. It plants false information across a bank’s network endpoints, detects when an attacker acts on the information and captures forensics from the compromised machine. It also detects unnecessary files that could serve as tools for hackers.

Best of FinXTech Connect: Sandbox Banking

The middleware platform, which also won the “Best Solution for Improving Operations” category, was also noted for working hand-in-hand with bank staff to create custom API connections to solve specific bank issues. In addition, banks can access three-hour blocks of developer time each month to work on special projects outside of regular technical support.

Connecting with Millennials By Going Beyond Traditional Services


technology-8-28-19.pngBanks are at a crossroads.

They have an opportunity to expand beyond traditional financial services, especially with younger customers that are used to top-notch user experiences from large technology companies. This may mean they need to revisit their strategy and approach to dealing with this customer segment, in response to changing consumer tastes.

Banks need to adjust their strategies in order to stay relevant among new competition: Accenture predicts that new business models could impact 80% of existing bank revenues by 2020. Many firms employ a “push” strategy, offering customers pre-determined bundles and services that align more with the institution’s corporate financial goals.

What’s missing, however, is an extensive “pull” strategy, where they take the time to understand their customers’ needs. By doing this, banks can make informed decisions about what to recommend to customers, based on their major consumer life milestones.

Only four in 10 millennials say that they would bundle services with financial institutions. Customers clearly do not feel that banks are putting them first. To re-attract customers, banks need to look at what they are truly willing to pay for — starting with subscription-based services. U.S consumers age 25 to 34 would be interested in paying subscription fees for the financial services they bundle through their bank such as loans, identity protection, checking accounts and more, according to a report from EY. With banks already providing incentives like lower interest rates or other perks to bundle their services, customers are likely to view a subscription of bundled services with a monthly or annual fee as the best value.

Subscription-based services are a model that’s already found success in the technology and lifestyle sector. This approach could increase revenue while re-engaging younger generations in a way that feels personal to them. Banks that decide to offer subscription-based services may be able to significantly improve relationships with their millennial customers.

But in order to gain a deeper understanding of what services millennials desire, banks will need to look at their current customer data. Banks can leverage this data with digital technology and partnerships with companies in sectors such as automotive, education or real estate, to create service offerings that capitalize on life events and ultimately increasing loyalty.

Student loans are one area where financial institutions could apply this approach. If a bank has customers going through medical school, they can offer a loan that doesn’t need to be repaid until after graduation. To take the relationship even further, banks can connect customers who are established medical professionals to those medical students to network and share advice, creating a more personal experience for everyone.

These structured customer interactions will give banks even more data they can use to improve their pull strategy. Banks gain a more holistic view of customers, can expand their menu of services with relevant products and services and improve the customer experience. Embracing a “pull” strategy allows banks to go above and beyond, offering products that foster loyalty with existing customers and drawing new ones in through expanded services. The banks that choose to evolve now will own the market, and demonstrate their value to customers early on.

How to Deliver a Full Customer Experience Over Mobile Banking


mobile-8-21-19.pngWith most banking activity taking place on mobile, banks must innovate in order to deliver the full customer experience straight to customers’ fingertips.

With more people using their phones to access banking services, banks cannot afford to miss out on the massive opportunity to go beyond transactions and offer the sales and service customers seek. A Citigroup study found that mobile banking is among the top three most-used applications on a consumers’ phone, increasing 50% from 2017 to 2018.

Many banks still have a siloed mindset, considering in-branch, mobile and online experiences as separate and distinct entities. But their customers don’t differentiate between channels; they view banking as an omni-channel experience.

Their expectations are the same, whether they go to a branch, visit their bank’s webpage at home or open an app on their phone. If they have questions, they expect the ability to ask their bank within the mobile app just as easily as they would in branch. And if they are interested in learning about savings accounts or loan rates, they expect to easily find that information within the mobile banking space.

Banks have long thrived by delivering seamless transactions, competitive and unique products and outstanding service. They have responded to the growing popularity of mobile banking by investing in technology to build out robust transactional experiences for their customers. From mobile deposit to transferring funds to bill pay, the ability to conduct fundamental banking transactions is available to and frequently used by customers.

Where bank mobile apps are lacking, however, is in providing the sales and service that they excel at delivering in their branches to the mobile devices of their customers. This is a huge opportunity many banks are missing. Based on our data, there are about 2,000 opportunities per every 25,000 accounts where a customer expresses an intent to inquire about how to do something or how to adopt a new product that is entirely uncaptured in mobile banking.

With the advent of digital transformation and more activity moving to mobile channels, the sales and service aspects of banking have gradually become more diluted. Banking has become less sales and service oriented and increasingly more transactional.

There is only one direction for banks to go: give consumers what they want and demand. Banks need to offer customers the ability to connect with them on their phone anytime, anywhere, and to receive the same level of sales and service they do at a branch. Mobile banking provides a plethora of opportunities to do just that.

Banks need to do more to provide the same support and service in their mobile channels as they do within their branches. There are three easy ways they can begin to leverage mobile banking to go beyond transactions to deliver sales and service to their customers.

1. Embed a robust help center within mobile banking.
Make finding and accessing digital support a breeze. Embed support content from your website within your mobile banking application to allow customers easy access to help content like resetting passwords and fund transfers. Make sure the most frequently asked questions are answered in a manner that answers the questions, provides additional information and creates a call to action.

2. Utilize chatbot to further engage customers.
Add live chat or an automated chatbot for an additional avenue to engage with your mobile customers. Banks can use chat to suggest relevant content or products and services, help point customers in the right direction and to learn more about their financial goals and needs.

It’s not uncommon for chat usage to double once it is added to mobile banking, which can put a sizeable strain on contact centers. Use support content in the form of a chatbot to allow customers the ability to self-answer common support questions, and offer live chat for more complex questions and issues.

3. Provide clear, concise product information.
Customers no longer consider mobile banking to be purely transactional. They think of it as an extension of a branch, where they’ve come to expect support and sales information. Providing links to your key products within mobile banking can encourage customers to explore your offerings.

When banks fail to go beyond transactions in mobile banking, they miss out on a vast opportunity to provide sales and service through the channel customers are the most present. The consequences of not doing so can result in greater contact center volume, and missed opportunities to increase wallet share.

Six Reasons to Have a Fintech Strategy


fintech-7-23-19.pngFinancial technology, or fintech, is rapidly and dramatically changing the financial services landscape, forcing banks to respond.

Banks are taking different approaches to capitalize on the opportunities presented by fintech, mitigating the risks and remaining competitive. Some of these approaches include partnering with fintech companies, investing in them, investing in internal innovation and development or creating or participating in fintech incubators and labs. Some banks focus on a single strategy, while some mix and match. But many have no plan at all.

The board of directors oversees the bank’s strategic direction and provides senior management with risk parameters to exercise their business discretion. Fintech must be part of that strategic direction. A thoughtful and deliberate fintech strategy is not only a best practice, it is a necessity. Here are six reasons why.

1. Fintech is Here to Stay. Bankers who have seen many trends come and go could be forgiven for initially writing off fintech as a fad. However, fintech is wholly reshaping the financial services industry through digital transformation, big data, cybersecurity and artificial intelligence. Fintech now goes far beyond core systems, enhancing capabilities throughout the bank.

2. Customers Expect It. Demographics are changing. Customers under 40 expect their banking services to be delivered by the same channels and at the same speed as their other retail and consumer services like online shopping and ride-hailing applications. Banks that cannot meet those expectations will force their younger customers to look elsewhere.

3. Competition and Differentiation. Community banks may not be able to compete with the largest banks on their technology spend, but they should be competitive with their peers. Developing and executing a thoughtful fintech strategy will enhance a bank’s identity and give them a competitive advantage in the marketplace.

4. Core Systems Management. Banks must have a strategy for their core banking systems. Replacing a legacy system can take years and requires extensive planning. Banks must weigh the maintenance expense, security vulnerability and reduced commercial flexibility of legacy systems against the cost, potential opportunities and long-term efficiencies of the next generation platforms.

5. Fiduciary Duty Demands It. A board’s fiduciary duty includes having a fintech strategy. The board is accountable to the bank’s shareholders and must create sustainable, long-term value. Director are bound by the fiduciary duty of care to act in the best interest of the bank. Given fintech’s rapid expansion, heightened customer expectations and the need to remain competitive, it is prudent and in the long-term best interest of the bank to have a fintech strategy.

6. Regulatory expectations. Boards are also accountable to bank regulators. The Office of the Comptroller of the Currency issued a bulletin in 2017 to address the need for directors to understand the impact of new fintech activities because of the rapid pace of development. The OCC is not the only regulator emphasizing that insufficient strategic planning in product and service innovation can lead to inadequate board oversight and control. A deliberate fintech strategy from the board can direct a bank’s fintech activities and develop a risk management process that meets regulatory expectations.

The best fintech strategy for a bank is one that considers an institution’s assets, capabilities, and overall business strategy and allows it to stay competitive and relevant. Not having a fintech strategy is not an option.

Using Intelligent Automation to Bank Smarter, Not Harder


technology-5-4-19.pngBy this point in 2019, most consumers and companies are somewhat familiar with the concept of artificial intelligence. Executives and consultants have discussed its application in financial services for years; lately, the conversations have been brisk and some organizations are doing more than just talking. Many tangible AI use cases have emerged at financial institutions of all sizes over the last 12 months, and intelligent technology is beginning to make an impact on banks’ productivity and bottom lines.

Still, AI remains a largely abstract concept for many institutions. Some of the biggest challenges these banks face in preparing and executing an AI strategy starts with having a too-narrow definition of these technologies.

Technically, AI is the ability of machines to use complex algorithms to learn to do tasks that are traditionally performed by humans. It is often misrepresented or misunderstood in broader explanations as a wider range of automation technologies — technologies that would be more appropriately characterized as robotics or voice recognition, for example.

Banks interested in using intelligent automation, which includes AI, robotic process automation, and other smart technologies, should target areas that could benefit the most through operational efficiencies or speed up their digital transformation.

Banks are more likely to achieve their automation goals if executives shift their mindsets toward thinking about ways they can apply smart technologies throughout the institution. Intelligent automation leverages multiple technologies to achieve efficiency. Some examples include:

  • Using imaging technology to extract data from electronic images. For example, banks can use optical character recognition, or OCR, technology to extract information from invoices or loan applications, shortening the completion time and minimizing errors.
  • Robotic process automation, or RPA, to handle high-volume, repeatable manual tasks. Many institutions, including community banks with $180 million in assets up to the largest institutions in the world have leveraged RPA to reduce merger costs, bundle loans for sale and close inactive credit and debit cards.
  • Machine learning or AI to simulate human cognition and expedite problem solving. These applications can be used in areas ranging from customer service interactions to sophisticated back-office processes. Some industry reports estimate that financial institutions can save $1 trillion within the next few years through AI optimization. Several large banks have debuted their own virtual assistants or chatbots; other financial institutions are following suit by making it easier and more convenient for customers to transact on the go.

What are next steps for banks interested in using AI? Banks first need to identify the right use cases for their organization, evaluating and prioritizing them by feasibility and business need. It’s more effective to start with small projects and learn from them. Conduct due diligence to fully assess each project’s complexity, and plan to build interactively. Start moving away from thinking about robots replacing employees, and start considering how banking smarter – not harder – can play out in phases.