The artificial intelligence gap between megabanks, community banks and credit unions

Observations from the Fintech Snark Tank

Claims regarding the impact of artificial intelligence (AI) on banking are getting out of control.

Claim #1: 

[Financial] institutions will turn AI-enabled back-office operations into external services, both accelerating the rate at which these capabilities improve and necessitating others to become consumers of those capabilities to avoid falling behind.” (Source: World Economic Forum)

No they won’t. Establishing external services requires marketing and customer service. And it takes someone who knows how to manage a profit-center to run the show–which doesn’t usually describe the folks running those departments today.

You really think a lot of institutions are going to make the investments required to turn some AI-infused back-office operation into its own line of business?


continue reading »