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Forbes
14-07-2025
- Business
- Forbes
Generative AI As Infrastructure: A Productivity Playbook For Banks
AI productivity in banks OBSERVATIONS FROM THE FINTECH SNARK TANK As banks explore the value of artificial intelligence, one fact is becoming increasingly clear: generative AI is emerging as core infrastructure for operational transformation. A recent report by Cornerstone Advisors and commissioned by Hapax, provides a framework for how banks and credit unions can move beyond experimentation and begin capturing tangible productivity gains from generative AI. Moving From Generative AI Experimentation to Enterprise Value Many financial institutions are in a reactive posture toward generative AI—running pilot programs, deploying isolated tools, or setting general usage policies. While this exploratory stage is important, generative AI must ultimately be treated as foundational infrastructure, similar to broadband connectivity or cloud architecture. Institutions that approach generative AI this way are seeing measurable improvements in productivity and staff enablement in three key areas: 1) knowledge management; 2) process and workflow optimization; and 3) personal productivity. The most immediate and impactful application of generative AI has been streamlining internal knowledge access. Employees at every level—from compliance teams to branch staff—routinely spend valuable time searching for policy documents, procedural guidance, or answers to routine questions. By implementing 'super search' platforms powered by generative AI, these institutions have enabled staff to find accurate, real-time answers in seconds rather than minutes. Marine Credit Union, for example, reported a 20–25% increase in employee productivity after adopting such a solution. These tools reduce cognitive friction, shorten onboarding and training times, and enhance overall employee experience. Rather than replacing staff, AI acts as an expert assistant—always available, up to date, and context-aware. Some institutions are beginning to integrate AI more deeply into critical business workflows. In particular, compliance, vendor due diligence, treasury operations, and HR policy development are emerging as high-impact use cases. By automating tasks like document summarization, risk flagging, or policy drafting, AI is helping teams reduce cycle times, improve accuracy, and free up capacity for higher-order decision-making. In doing so, AI becomes less of a tool and more of a collaborator embedded within the daily operational rhythm. At First State Community Bank, initial concerns about uncontrolled AI usage were replaced by a structured adoption framework that included employee training, clear governance, and change management support. The outcome: improved productivity and rising employee interest in new AI applications. Measuring and Managing the Value of Generative AI The report emphasizes the need for rigorous measurement when deploying AI. Banks and credit unions should treat each AI-enabled workflow like a capital investment—with clear ROI metrics, performance tracking, and continuous feedback loops. Key performance indicators (KPIs) should be defined upfront, including: Institutions like Visa and JPMorgan Chase have published productivity figures tied to AI initiatives: Visa reported $40 billion in fraud prevention using AI, and JPMorgan's COIN platform automated 360,000 hours of legal document review. While community banks and credit unions may operate at a smaller scale, the principle remains the same—measurable value is the standard for success. Building a Scalable Generative AI Adoption Strategy Rather than launching full-scale AI transformations, take a stepwise approach: This incremental approach reduces risk while accelerating organizational learning and adoption. Generative AI as Infrastructure Just as no one says 'we're doing a cloud project' anymore—because cloud is now assumed to be part of modern IT architecture—the same will soon be true for generative AI. Too often, AI is viewed as an 'app'—something a business can bolt on to fix a specific problem. AI isn't a project—it's infrastructure because it: Treating AI as infrastructure means rethinking how you: 1) Budget—moving from 'AI project line item' to 'platform-level investment;' 2) Organize—creating cross-functional teams for AI model ops, governance, and integration; 3) Govern—establishing AI lifecycle management, bias detection, and explainability standards; and 4) Train—shifting the focus from 'how to use the tool' to 'how to build on top of it.' Organizational Considerations: Trust, Culture, and Governance Perhaps most importantly, the report underscores that AI transformation is as much about people as it is about technology. Trust is a prerequisite. Employees must understand how AI works, what it's doing, and how it benefits them. Leaders must invest in change management, education, and the creation of AI champions throughout the organization. At Magnifi Financial, a culture of transparency and hands-on experimentation helped overcome initial skepticism. Employees began with small use cases, validated outcomes, and built confidence organically. Over time, AI became not just a technical initiative, but a workforce enabler. A Strategic Inflection Point For Generative AI Financial institutions now face a strategic decision: treat AI as an isolated technology, or embrace it as foundational infrastructure. The former risks stagnation. The latter opens the door to continuous productivity improvement, talent enablement, and better outcomes for customers. The institutions profiled in the report demonstrate that real, measurable value is within reach—achievable today through focused deployment, strong governance, and a commitment to change. As generative AI matures, the competitive advantage will go to those who embed it deeply and intelligently across their organizations. For banks and credit unions ready to move from hype to impact, this generative AI playbook provides a valuable guide. For a complimentary copy of the report The Playbook for Generative AI-Driven Productivity Improvement, click here.


Forbes
09-07-2025
- Business
- Forbes
How Banks Can Be The Anti-Robinhood And Reverse Deposit Displacement
Deposit displacement Source: Cornerstone Advisors The deposit displacement numbers are staggering—and deeply concerning for banks and credit unions. According to research from Cornerstone Advisors and Investifi, more than $3 trillion has slipped out of banks' and credit unions' coffers and into the hands of fintechs, neobanks, and digital investment platforms over the past few years. This isn't just a passing trend—it's a full-scale displacement of deposits that threatens the foundation of community financial institutions. And at the center of this disruption lies an unexpected culprit: consumer investing. It's no secret that fintechs and neobanks have been gaining market share, particularly among younger consumers. What may surprise bank and credit union executives is the scale and demographic breadth of the deposit outflow. Over the past few years: Fintech investment accounts have attracted $2.15 trillion in deposits from megabanks, regional banks, and community financial institutions. Fintech savings accounts have siphoned off another $1.05 trillion. While younger generations—Gen Z and millennials—are often assumed to be driving this shift, Cornerstone's study found that Gen Xers and baby boomers accounted for 65% of the funds flowing into fintech investment platforms. In other words, this isn't just a young person's game—it's a systemic challenge across all age groups. At the center of the situation is the changing role of the checking account. Increasingly, Americans treat their checking accounts like paycheck motels—temporary places for their money to stay before it moves on to higher-yield savings accounts, investment platforms, and other alternative financial services. On average, Americans rate their primary checking account a lukewarm value rating of just 7.8 out of 10, with younger generations even less impressed. More than a third of Gen Zers and 40% of millennials say they'd be 'very likely' to open a new checking account if they found a better option. Fintechs and digital banks have seized on this dissatisfaction by offering more than just slick apps—they're bundling checking accounts with features like: Fee-free overdrafts (e.g., Chime's SpotMe) Instant cash advances (e.g., Dave's ExtraCash) Integrated investing options These offerings don't just capture deposits—they reshape consumer expectations of what a financial relationship should look like. Historically, banks and credit unions haven't worried much about losing deposits to investment accounts. But times have changed. Today, nearly half of Gen Zers and millennials are investors, and the majority of their accounts were opened with fintechs—not traditional financial institutions—and in fact, 17% of zillennials (Gen Z and millennials) opened investment accounts through cryptocurrency exchanges. Many of these young investors use fintech investment providers for checking, savings, and even credit cards—not just for investments. Worse, a quarter of zillennials plan to shift an existing banking relationship to a fintech in the next 12 months. Crypto Exacerbates Deposit Displacement The rise of cryptocurrency is amplifying this threat. Cornerstone's research found that: 25% of Gen Z and 33% of millennial investors hold crypto assets. On average, Gen Z and millennial investors have 25% of their investable assets in cryptocurrencies. Among zillennial investors, 20% have more than half their portfolio in crypto. And the momentum is growing. A third of zillennials and nearly 20% of Gen Xers plan to invest in crypto this year. Banks and credit unions that dismiss crypto as a fringe fad risk are missing the broader investing shift that's pulling deposits—and entire relationships—out of the traditional banking ecosystem. Do Robinhood Customers Understand Its Business Model? At the center of the investing-led deposit displacement is Robinhood who has amassed more than $18 billion in deposits—despite the company's fines and business model. A conversation on X between Frank Rotman, co-founder of VC firm QED Investors, and a friend who used Robinhood as an on-ramp into the trading world raises questions about how well-informed the fintech's customers are about how it operates. Here's a snippet of the conversation: Frank: What do you like about Robinhood? Friend: It's free and super easy. They don't make any money on my trades so I can move my money around a lot. I like trying a little of this and a little of that and it works because its free. Frank: Do you realize they make money by selling your order flow to electronic trading firms? They make a little on stock trades, more on crypto and even more on options. Friend: First I've heard of it. They don't charge me anything so to me its free. Supposedly, zillennials want 'authenticity' from the companies they do business with. (Sources: 1) a 2019 Deloitte study focused on 'a generation's search for authenticity;' 2) a Huffington Post article titled Millennials Want Brands To Be More Authentic. Here's Why That Matters; and 3) a CNBC article that claimed 'Gen Z craves a personal, authentic connection.") But is there any fintech less 'authentic' than Robinhood? Its claim to 'democratize finance for all' is nonsense. As Scott Galloway tweeted: Scott Galloway tweet on Robinhood Source: X A consumer survey from Cornerstone Advisors asked Robinhood users what impact trading with the brokerage firm had on their financial lives. No surprise, nearly nine in 10 customers said Robinhood made it easier for them to buy and sell stocks. But only a little more than half (54%) said the digital brokerage helped them become more educated about investing, and just 37% credited the firm with helping them improve the overall return on their investments. The latter shouldn't come as a surprise. A report titled The Good, The Bad, And The Ugly About Payment For Order Flow suggested that there is some benefit—in terms of lower order price—from payment from order flow (PFOF) to retail customers. But the report concludes that the downsides of PFOF far outweigh the benefit to the average retail investor. Because Robinhood makes money by selling order flow, it will always place the needs and priorities of the companies that pay for that order flow over the needs and wants of its users. The $2 Trillion Deposit Displacement Opportunity The deposit displacement crisis isn't irreversible. Cornerstone estimates that banks and credit unions can realistically reclaim about a third of the nearly $2 trillion in funds lost to fintech investing platforms. The key? Developing integrated investing services that: Allow consumers to invest directly from their checking account. Offer bundled financial wellness features like credit score monitoring and subscription management. Provide seamless, mobile-first investment experiences within existing digital banking platforms. Deliver targeted education to demystify investing, especially for young consumers who believe they don't have enough money to get started. In fact, 70% of non-investing Gen Zers and Millennials report having more than $5,000 in savings—plenty to open an investment account. The problem isn't capability—it's awareness and access. Community banks and credit unions can't simply "market harder" or 'be cool like Robinhood' to win back lost deposits. They must: Reimagine their checking and savings products to integrate investing. Partner with fintechs or investtech providers to embed seamless investment options. Equip consumers with tools and education to overcome investing barriers. Expand digital capabilities to meet the expectations set by neobanks and crypto platforms. Conclusion: A Deposit Displacement Call to Action The $2 trillion deposit outflow isn't just a threat—it's a wake-up call. Banks and credit unions have a limited window to evolve their product offerings, digital experiences, and customer education strategies to stem the tide. Those that move quickly to integrate investing into their core banking relationships can not only defend against deposit displacement but unlock new growth opportunities. For a complimentary copy of the report Stemming the Deposit Outflow: The $2 Trillion Investing Opportunity for Banks and Credit Unions , click here.
Yahoo
12-05-2025
- Business
- Yahoo
Apiture and Cornerstone Advisors Join Forces to Help Financial Institutions Evaluate Their Strategic Use of Data
WILMINGTON, N.C., May 12, 2025--(BUSINESS WIRE)--Apiture, a leading provider of digital banking solutions, today unveiled new research in partnership with Cornerstone Advisors about financial institutions' ability to manage data effectively. Improving Your Financial Institution's Data IQ establishes a new framework — Data IQ — to help banks and credit unions assess and improve their use of data against industry standards. The report is based on a March 2025 online survey of nearly 130 senior executives from U.S. financial institutions. While the importance of data has been emphasized for decades, the stakes are now higher than ever as AI continues to transform core banking operations, customer service, and risk management frameworks. This report explores the challenges financial institutions face in data management, including technological limitations, governance issues, security concerns, and the rising demand for real-time analytics. "While AI promises significant efficiency gains and competitive advantages, many financial institutions find it challenging to bridge the gap between their existing data infrastructure and the complex demands of modern AI systems," said Ron Shevlin, Chief Research Officer at Cornerstone Advisors. "To overcome these hurdles, institutions need to prioritize the right tools, thoughtful design, disciplined processes, and clear business outcomes. Those institutions with a high Data IQ score understand this and, in turn, are already reaping the benefits." Data IQ reflects institutions' effectiveness in their use of data, evaluating 50 attributes in five key categories: customer data, market data, transaction data, operational data, and data governance. The research findings reveal that most institutions are operating at half of their Data IQ potential, with few bankers considering their institutions very effective at data governance, strategy, or quality. What's more, even fewer respondents view their organizations as effectively using data to enhance operational efficiency or the customer experience, with more than a third rating their bank or credit union as not effective at all in these areas. The report highlights several best practices for building a high Data IQ, including: Designing from desired outcomes. Institutions should first determine the key needs for improving performance and customer delivery, designing solutions and processes to achieve them. Making data integrity and data strategy a company habit. Every employee should be held accountable for data integrity and should be responsible for maintaining accurate, consistent data across channels. Using external expertise for efficiency. The right partner can be vital in helping to make the journey to achieving a high Data IQ. "Data is one of the most powerful assets an institution has, yet most banks and credit unions are only scratching the surface of its potential," said Apiture CEO Chris Babcock. "This research confirms that although institutions recognize the importance of their data, they often lack the structure, governance, and guidance needed to use it effectively. The new Data IQ framework helps banks and credit unions better understand the reasons institutions struggle with data management and offers insights to help them maximize their investment in data initiatives." Shevlin will share additional insights from the report at Apiture Accelerate, the company's client conference, May 13-15 in New Orleans. Additionally, he will join Apiture Chief Product Officer Daniel Haisley for a webinar on June 4 where the two will discuss effective data strategy, its role in creating tailored experiences, and tips for how financial institutions can improve their data maturity. Please visit the event's landing page to register today. To learn more about the Data IQ framework and current industry benchmarks, download the full report. About Apiture Apiture delivers award-winning digital banking solutions to banks and credit unions throughout the U.S. Our flexible, highly configurable solutions meet a wide range of financial institutions' needs, from leveling the playing field with larger institutions to supporting growth through innovative data intelligence and embedded banking strategies. With our API-first approach, our clients can maximize the capabilities of their platform while preserving a seamless user experience. Our exclusive focus on digital banking, and a team with hundreds of years of collective experience working at U.S. financial institutions, means we are dedicated to meeting the unique needs of our clients while providing a level of support that is unmatched in the industry. Apiture is headquartered in Wilmington, North Carolina, with offices in Austin, Texas. To learn more, visit View source version on Contacts MEDIA CONTACTS:Derek HowardFor Apiture678-781-7215derek@ Maddie MitchamFor Apiture678-781-7207maddie@


Business Wire
12-05-2025
- Business
- Business Wire
Apiture and Cornerstone Advisors Join Forces to
WILMINGTON, N.C.--(BUSINESS WIRE)-- Apiture, a leading provider of digital banking solutions, today unveiled new research in partnership with Cornerstone Advisors about financial institutions' ability to manage data effectively. Improving Your Financial Institution's Data IQ establishes a new framework — Data IQ — to help banks and credit unions assess and improve their use of data against industry standards. The report is based on a March 2025 online survey of nearly 130 senior executives from U.S. financial institutions. While the importance of data has been emphasized for decades, the stakes are now higher than ever as AI continues to transform core banking operations, customer service, and risk management frameworks. This report explores the challenges financial institutions face in data management, including technological limitations, governance issues, security concerns, and the rising demand for real-time analytics. 'While AI promises significant efficiency gains and competitive advantages, many financial institutions find it challenging to bridge the gap between their existing data infrastructure and the complex demands of modern AI systems,' said Ron Shevlin, Chief Research Officer at Cornerstone Advisors. 'To overcome these hurdles, institutions need to prioritize the right tools, thoughtful design, disciplined processes, and clear business outcomes. Those institutions with a high Data IQ score understand this and, in turn, are already reaping the benefits.' Data IQ reflects institutions' effectiveness in their use of data, evaluating 50 attributes in five key categories: customer data, market data, transaction data, operational data, and data governance. The research findings reveal that most institutions are operating at half of their Data IQ potential, with few bankers considering their institutions very effective at data governance, strategy, or quality. What's more, even fewer respondents view their organizations as effectively using data to enhance operational efficiency or the customer experience, with more than a third rating their bank or credit union as not effective at all in these areas. The report highlights several best practices for building a high Data IQ, including: Designing from desired outcomes. Institutions should first determine the key needs for improving performance and customer delivery, designing solutions and processes to achieve them. Making data integrity and data strategy a company habit. Every employee should be held accountable for data integrity and should be responsible for maintaining accurate, consistent data across channels. Using external expertise for efficiency. The right partner can be vital in helping to make the journey to achieving a high Data IQ. 'Data is one of the most powerful assets an institution has, yet most banks and credit unions are only scratching the surface of its potential,' said Apiture CEO Chris Babcock. 'This research confirms that although institutions recognize the importance of their data, they often lack the structure, governance, and guidance needed to use it effectively. The new Data IQ framework helps banks and credit unions better understand the reasons institutions struggle with data management and offers insights to help them maximize their investment in data initiatives.' Shevlin will share additional insights from the report at Apiture Accelerate, the company's client conference, May 13-15 in New Orleans. Additionally, he will join Apiture Chief Product Officer Daniel Haisley for a webinar on June 4 where the two will discuss effective data strategy, its role in creating tailored experiences, and tips for how financial institutions can improve their data maturity. Please visit the event's landing page to register today. To learn more about the Data IQ framework and current industry benchmarks, download the full report. About Apiture Apiture delivers award-winning digital banking solutions to banks and credit unions throughout the U.S. Our flexible, highly configurable solutions meet a wide range of financial institutions' needs, from leveling the playing field with larger institutions to supporting growth through innovative data intelligence and embedded banking strategies. With our API-first approach, our clients can maximize the capabilities of their platform while preserving a seamless user experience. Our exclusive focus on digital banking, and a team with hundreds of years of collective experience working at U.S. financial institutions, means we are dedicated to meeting the unique needs of our clients while providing a level of support that is unmatched in the industry. Apiture is headquartered in Wilmington, North Carolina, with offices in Austin, Texas. To learn more, visit