蘑菇AV

While most US regional banks have moved past last month鈥檚 turmoil, First Republic is pulling out all the stops to survive.

Every customer鈥檚 reaction, share, or comment influences the reach of a bank鈥檚 message鈥攁nd could threaten the bank itself. Banks should use social media to actively engage online communities, not just to display ads.

Winning Gen Zers鈥� deposits will depend on capturing their attention and trust early in the customer journey. At the discovery and consideration stages, Gen Zers鈥� habits are very different than those of other generations, per our inaugural survey of 1,488 US banking consumers. That means banks must rethink their marketing strategies to best appeal to this generation鈥檚 preferences.

Small banks and credit unions should focus on digital interactions, ease of use, and consumer safety to boost deposits in H2 2023.

GenAI could generate between $200 billion and $340 billion (9% to 15% of 产补苍办蝉鈥� operating profits) in value annually through greater productivity, per a 2023 McKinsey & Company report. But its potentially disruptive force won鈥檛 take hold in 2024.

In 2023, 92.3% of the 5.2 million accounts opened digitally will be with incumbent banks. Even Gen Zers鈥攖he main source of account opening growth鈥攚ill largely opt for trusted institutions. Neobanks will be left in the dust, especially as fintechs and Big Tech siphon away customers.

A new rule addressing lending discrimination in online banking marks the most significant revision to the Community Reinvestment Act (CRA) in nearly three decades.

Regional banks are holding out for lower interest rates to spur loan demand and alleviate deposit costs.

Fed program will monitor 产补苍办蝉鈥� 鈥榥ovel activities鈥� in crypto and other innovative tech: If you鈥檙e handling digital assets, running a blockchain, or offering banking as a service, your activities will likely fall under this program鈥檚 oversight.

It鈥檚 calling on bank officials to enforce tighter regulations that can be enacted under existing laws. But the actions don鈥檛 solve all the issues.

42.4% of US Gen Z banking consumers would consider their proximity to ATMs as a factor before choosing a new bank, while 28.8% would consider their distance to a branch, according to our survey. By contrast, 39.6% would consider the bank鈥檚 reputation.

Speculation about which regional bank might fail next is rising as the Fed and Treasury balance policy moves.

On today鈥檚 episode, we look at the various angles of generative AI in banking. In our "Headlines" segment, we discuss regulators' urgency to install oversight over the rapidly advancing technology. In "Story by Numbers," we examine the percentage of executives that are not aware of how fast generative AI is coming, as well as discuss an old number that has been around the finance world for a while about human customer service agents versus bots. And in "For Argument's Sake," we take sides in the debate over whether generative AI will raise the bar or level the playing field for small and regional banks. Tune in to the discussion with host Rob Rubin, our analyst Eleni Digalaki, and vice president of content strategy Dan Van Dyke.

Adoption of AI in banking chatbots gathers steam this year: A survey finds that 3 in 10 credit union respondents plan to invest in AI-powered chatbots in the coming months. That鈥檚 a more aggressive rate than their rival community banks.

Consumers鈥� love-hate relationship with social media puts 产补苍办蝉鈥� image at risk.

Young consumers want faster, easier access to funds than traditional lending options currently offer.

Apple鈥檚 headline-grabbing buy now, pay later (BNPL), savings, and credit card products are just one part of the threat it poses in consumer banking: Its digital platform delivers an almost unbeatable user experience (UX) and is tailor-made for Gen Z. Banks must adapt quickly or risk losing market share.

Major banks still draw CFPB鈥檚 scrutiny: Under Chopra, the agency has brought fewer cases but won larger settlements鈥攅ven as it faces legal questions on its funding mechanism.

GenAI will generate more financial value for banks than any other technology introduced in the last decade. Per a September 2023 McKinsey & Company research, it could hit $200 billion to $340 billion annually through greater productivity.