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What banks can do: Big Tech, neobanks, and fintechs are stiffening the competition in US banking. But lenders can maintain their market position and grow by enacting certain policies. Offering better rates is an obvious way to retain and attract customers. Consumers are acutely aware of the need to shop around for better returns and happy to leave banks if they're unsatisfied.

The valuations of Revolut and Varo Bank were slashed amid question marks over both 苍别辞产补苍办蝉鈥� bottom lines.

蘑菇AV 37% of the US population used them in 2022, and that number is expected to grow. That鈥檚 being driven by a raft of potential benefits that AI virtual assistants can bring, including improved efficiency and personalized financial advice.

Senators鈥� questioning highlighted the dangers of a lack of accountability on Wall Street. That could pave the way for new regulations.

That triggered customers to start pulling deposits which snowballed and eventually led to the biggest US bank failure since the 2008 crisis. What was significant about the bank run at SVB was the role social media played in whipping up panic online and creating an echo chamber鈥攍eading to the fastest bank run in history, according to former SVB CEO Gregory Becker.

The news: The US banking system remains 鈥渟ound and resilient,鈥� according to the Federal Reserve, despite warning that recent turmoil could lead to a credit squeeze and a 鈥渕arked slowdown in economic activity.鈥�.

Big Six US banks are unlikely to be at risk:. The biggest Wall Street lenders will have some exposure to the uncertainty surrounding regional banks, but they鈥檙e well prepared to weather the storm that鈥檚 hurting less established lenders.

The trend: Despite some banks鈥� efforts to get staff back into the office, just 20% of US financial services companies require fully on site work, according to hybrid working specialist Scoop. Hybrid work鈥檚 here to stay: Scoop鈥檚 Q1 2023 Flex Report collected data on more than 4,000 companies in the US between October 2022 and February 2023. The research found:.

The news: US banks have 鈥渟ome work to do鈥� before they can embrace AI-powered tools like ChatGPT, according to Bank of America CEO Brian Moynihan. Speaking virtually at Sydney's AFR Business Summit, Moynihan acknowledged the technology鈥檚 usefulness but cautioned banks that external generative AI tech must be 鈥渁pplied correctly,鈥� per Bloomberg.

Mass layoffs at the Wall Street bank and a forecasted 46% drop in profits are symptomatic of the broader banking industry slowdown.

That鈥檚 more deposits than 92% of all US banks and credit unions. Analysts at Crone Consulting suggest that banks and fintechs must be willing to collaborate with Apple by making Apple鈥檚 financial capabilities compatible with their own. Though FIs will face transaction costs associated with the capabilities, they should view them as an investment.

The share of Gen Z digital-only bank account holders will grow 29.5% compounded annually from 2023 through 2026, which means neobanks have a real chance to win out. Digital gaming is also knocking. Gamers will tap into digital wallets and transactions in games like Roblox and Minecraft. But digital doesn鈥檛 mean financially literate.

In a first, 62.1% of adults in the US will use mobile banking, surpassing the 61.5% who will use in-branch banking, per our forecast. This is a marked shift from 10 years ago, when 78.8% of adults used bank branches and 18.6% used mobile.

US digital-only account openings will remain flat at just 200,000 every year from 2024 through to 2027, according to our forecast. Traditional account openings, however, will hover at 5.0 million and above during the same period.

Follow us on Instagram. Wells Fargo is a leading financial services company that proudly serves one in three U.S. households and more than 10% of small businesses in the U.S. Wells Fargo is proud to provide a diversified set of banking, investment and mortgage products and services. News, insights, and perspectives from Wells Fargo can be found on stories.wf.com.

On today's episode, we discuss what impacts customers鈥� trust in their banks. Using examples from Insider Intelligence's benchmark study, we dive deep in our 鈥淪tory by Numbers鈥� segment to demonstrate the power of fostering trust. In a new segment called 鈥淭he Rankings,鈥� we talk about where incumbent banks and neobanks rank in the digital benchmark and why. Join the discussion with host Rob Rubin and our analyst Tiffani Montez.

On this special bonus episode of "The Banking & Payments Show," we take a step back from the Silicon Valley Bank debacle to explore what鈥檚 on the horizon for the banking industry. In our "Trouble and Opportunity" segment, we examine the lasting effects from the banking failure (e.g., more regulation) and consider the trends that may arise from this crisis (e.g., more neobanks). Tune in to the conversation between host Rob Rubin and our analyst Tiffani Montez to hear what the path forward will be after the meltdown.

Goldman Sachs learned a few tough lessons in its attempt to build an in-house digital 鈥渟peedboat鈥� to compete with neobank challengers: Much more goes into attaining profitability than just new branding and marketing, and attracting new, lower-income customers outside of its wheelhouse requires a tailored approach to that demographic鈥檚 differing needs.

On today's episode, we break down everything there is to know about banking and the Gen Z demographic. In our 鈥淗eadlines鈥� segment, we discuss the article our analyst Tyler Brown published a few weeks ago about Greenlight, a neobank for kids, teens, and families. In 鈥淪tory by Numbers,鈥� the conversation revolves around why Gen Z is different from other generations and how banks need to cater to their mobile preferences. And in 鈥淔or Argument鈥檚 Sake,鈥� host Rob Rubin takes the position that in 10 years, there will be fewer than 500 consumer banks. Tune in to the conversation between Rubin and analysts Tyler Brown and Tiffani Montez.

Follow us on Instagram.

Wells Fargo is a leading financial services company that proudly serves one in three U.S. households and more than 10% of small businesses in the U.S. Wells Fargo is proud to provide a diversified set of banking, investment and mortgage products and services. News, insights, and perspectives from Wells Fargo can be found on stories.wf.com.

Prediction: Major US banks will up the data privacy ante with 50% of the top 20 banks allowing consumers to manage third-party data access to financial information via mobile. Trend 3: Neobanks are nearing the end of their runway. Digital challengers faced a lack of funding in 2022 as investors favored profitability over growth.

ATM location: If they鈥檙e a digital-only bank or have closed lots of physical locations, they should consider covering customers鈥� ATM fees, at least up to a certain threshold. Figuring out which accounts Gen Zers gravitate toward can help FIs determine if this benefit should be universal or solely target cash-reliant consumers.

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.