Banking, Member Exclusive

The four questions steering modern banking strategy

  • Modern banks are making deliberate choices about which part of the financial ecosystem they want to own.
  • As AI democratizes expertise and technology commoditizes products, the source of competitive advantage is shifting from what banks build to the role they own in the financial ecosystem.
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The four questions steering modern banking strategy

June demonstrated four different themes of where banking is headed.

As AI reshapes advice, infrastructure is becoming a differentiator, and treasury moves into the spotlight, banks are making increasingly distinct bets on where they want to create value. Moves by KeyBank, SoFi, Fifth Third, and Grasshopper show just how differently these institutions envision the future of banking.

Question One: If AI handles transactions, what becomes the bank’s job?

KeyBank is betting that relationship banking becomes more valuable when AI handles the routine work.

Jeannie Fanning, Director of Consumer Relationship Growth, argues that automation earns banks the opportunity to spend more time on the conversations customers actually value. “If financial institutions weren’t optimizing around efficiency, automation, and scale, they wouldn’t earn the right to build personal relationships with customers,” she noted.

AI, she said, should compress the time it takes bankers to gather customer insights from 30 minutes to 30 seconds. The real value comes afterward, helping customers navigate buying a home, planning retirement, or resolving a complicated financial situation.

KeyBank isn’t treating AI as a substitute for advice, but as preparation for it. As routine interactions increasingly disappear behind apps and algorithms, the moments that still require a human banker become disproportionately important. The competitive advantage shifts from processing transactions to understanding context. In that world, “knowing your customer” becomes less about KYC data and more about knowing what matters when a customer needs help.

Question Two: What happens when finance stops being a collection of products?

Question Three: What makes a bank systemically important in 2026?

Question Four: Is the checking account becoming the least interesting part of business banking?


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