Artificial Intelligence, Member Exclusive

Letter from the editor: Some thoughts on AI and financial services

  • Beyond the hype of AI, will banks really be able to harness any of the new tools to improve customer experiences and products?
  • From Mastercard to Key Bank, it's clear that AI's first stop isn't anywhere near its last.
close

Email a Friend

Letter from the editor: Some thoughts on AI and financial services

“I always get extremely excited about a new technology, but I’ll call it a measured, perhaps even a jaded, enthusiasm, because over the years, there’s been so many technologies that are out there. I remember, it’s probably a dozen years ago, people had to end every sentence with and on the blockchain. And you’d have to ask: why is it better than what you have?” – Mastercard CTO Ed McLaughlin on the Tearsheet Podcast

My conversation with Mastercard President and CTO Ed McLaughlin this week helped to put some things in perspective around new technology. You can listen to the whole episode and get the transcript (available only to TS Pro subscribers).

Every few years, there are tech trends that get everyone excited. Part of that is vendor pressure that focuses on point solutions. Part of that is FOMO built and nurtured by financial services consultants supported by data and research. Innovation teams have to demonstrate that they’re getting their hands dirty with the next, new thing. The media is involved, too.

The reason that the steak typically doesn’t match the sizzle when it comes to the tech fads our industry experiences is that the whole adoption curve is typically upside down. Frequently, in the beginning, there are technologies looking for a use case, rather than the other way around.

Think blockchain a couple years ago. Chatbots a few years before that.

Where AI fits in

AI is that technology right now.

Not everyone sees a massive opportunity. Gartner placed generative AI on the Peak of Inflated Expectations on the 2023 Hype Cycle for emerging technologies.

Are things really different this time around with AI?

To be able to answer that, we have to look at:

  1. Better than alternatives?: whether our needs are best served by this new tech (or said differently, is it better enough than existing ways I’m solving my problem).
  2. Value of tech: Is the tech really ready for prime time?

Needs assessment comes before tech evaluation

Here’s Mastercard’s McLaughlin again on the needs assessment that precedes tech adoption:

subscription wall for TS Pro

0 comments on “Letter from the editor: Some thoughts on AI and financial services”

10-Q, Member Exclusive

Trump, Crypto, and Banks: A love triangle with trust issues

  • With the new president reshuffling the financial deck and rolling out the red carpet for crypto, banks are likely stuck in a corporate identity crisis.
  • Should they dive headfirst into the DeFi space or stick to the tried-and-true methods that have kept them at the top?
Sara Khairi | February 10, 2025
10-Q, Member Exclusive

Is AI your new work buddy or your pink slip in disguise? WEF 2025 Davos has thoughts

  • This year at WEF Davos, AI was practically the event’s co-host, sharing the spotlight with American politics.
  • AI can be a force for good or bad, but instead of focusing solely on job loss, the finance industry can view it through a wider lens.
Sara Khairi | February 03, 2025
10-Q, Member Exclusive

Inside the mind of Wise’s New Commercial Director for North America and her ambitious plans

  • Wise Platform has appointed Lauren Langbridge as its new Commercial Director for North America.
  • Lauren shares her career journey, vision for Wise, and transition to leading a public company in North America.
Sara Khairi | January 27, 2025
10-Q, Member Exclusive

Big Banks, Big Bucks: After a mic-drop Q4 2024, what’s on the menu for Q1 2025?

  • Big banks made a splash last week with their strong Q4 2024 earnings.
  • To keep the earnings streak alive in Q1 2025, FIs might need to refine their strategies — here’s what they could focus on.
Sara Khairi | January 20, 2025
Banking, Green Finance, Member Exclusive, The Quarterly Review

The Quarterly Review: Citizen’s Rachel Mattes Greenberg on how her team is sprinting to success in order to meet the bank’s $50 billion Sustainable Finance target

  • In April, Citizens' Head of Sustainability Rachel Mattes Greenberg, told me that she and her team were hard at work ensuring the bank meets its $50 billion in Sustainable Finance Target.
  • Her strategy involved launching two ESG reports and helping Citizens' bankers engage high-emitting clients in conversation about sustainability. Now she is here to report how these efforts panned out and where she is expecting to go next.
Rabab Ahsan | January 14, 2025
More Articles