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Banks embrace fintech and AI, but say cybersecurity and regulation remain top risks
Summary
Bank executives described partnerships with fintechs, internal AI tools for operations, and large technology investments, while warning that cybercrime and evolving payments (stablecoins) are major concerns.
Columbus — Executives from large and regional banks at a Columbus Metropolitan Club forum described a rapid adoption of fintech and artificial intelligence, while saying cybersecurity and regulatory compliance remain top operational concerns.
“Running a large operation…it's really essential that we lean into some of these emerging technologies,” Becky Griffin, head of home lending servicing and support operations at JPMorgan Chase, said. Griffin said her firm uses internal large-language models to help employees automate routine tasks and to extract data from mortgage documents.
Why it matters: Panelists said digital tools can reduce mundane work, speed customer service and lower costs, but they stressed those efficiencies do not remove the need for human judgment. Several speakers pointed to AI as an augmentation tool and to back-end document automation as a major operational win in mortgage servicing.
Fintech and partnerships: Panelists described fintechs as sources of innovation that larger banks often choose to partner with. “When I was at a larger bank, we chose to partner with those fintech organizations,” a panelist said, noting that payments products like Venmo, Zelle and PayPal began as fintech startups.
Cybersecurity and fraud: Banks said cyber risk is an ongoing, high-priority concern. “When you're moving $10,000,000,000,000 a day, … it's table stakes and you cannot get it wrong,” a panelist said, describing global transaction volumes and the need for robust defenses. Panelists noted frequent client incidents — phishing, ransomware and fraudulent wires — and emphasized investments in detection and recovery resources.
Stablecoins and crypto: On cryptocurrency, speakers said recent legislation on stablecoins has focused industry attention, framing stablecoins primarily as another form of payments. “It's really another form of payments,” a panelist said, adding banks are studying whether stablecoins will compete with cards, ACH or wires.
Branches and digital strategy: Panelists described hybrid strategies: some banks continue to invest in brick-and-mortar locations while also expanding digital channels. Executives said the presence of a branch can increase consumer consideration even if customers conduct most transactions digitally.
The panel took audience questions on workforce impacts from AI and the future of physical branches. Executives said AI will change some roles over time, but banks plan to retrain and redeploy affected employees where possible.
