Tag: banking

Unlike his stance on bitcoin, Jamie Dimon actively champions the use of AI in banking.

by SARA KHAIRI

Generative AI (Gen AI) stood out as one of the prominent trends in the previous year, extending its influence across various financial institutions. The trend is expected to segue in 2024 driven by the emergence of novel use cases. 

“In 2024 we expect Gen AI to gradually integrate into the operations and products of financial institutions and merchants globally,” Ken Moore, Chief Innovation Officer and Head of Foundry at Mastercard, told Tearsheet recently. “As challenges like data privacy, information accuracy, and bias are addressed, we anticipate that the range of use cases will expand to include more ambitious and public-facing deployments, like AI-driven financial advisors, conversational bankers, or travel co-pilots.”

While many FIs have integrated advanced AI solutions into their stacks to automate operations, the technology is still untapped at a deeper, internal level by many. This cautious approach stems from concerns about risks to data privacy and fears around the erosion of consumer trust. This is especially evident in the context of the largest US bank by assets, JPMorgan Chase, which is the poster child of taking a measured approach when venturing into unchartered territories.

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What’s the lowdown?

by SARA KHAIRI

Just a couple of days prior to reporting its fourth-quarter 2023 earnings, Citigroup issued a financial disclosure note.

Directed toward colleagues, Citi’s Chief Financial Officer, Mark Mason’s note fostered an air of anticipation regarding what lies ahead amid the challenges that the fourth-largest bank by assets has encountered in recent quarters.

Background: Wall Street banks were on a cost-cutting spree last year. Analogous to its peers, Citigroup took the same route, but there’s more to it. Citi’s last round of layoffs in September 2023 was a notch higher and came off the back of a major organizational shift spearheaded by CEO Jane Fraser. The overhaul involved the dissolution of major divisions, followed by some high-profile layoffs, leaving behind five main divisions: services, markets, banking, wealth management, and personal banking. 

While Fraser labeled these changes as requirements to simplify the bank structure and uplift shareholders’ sentiment, some view them as means to prove her mettle as the bank has stumbled on its goals in the last quarters, especially in investment banking. The bank also attracted analysts’ attention who felt a reverberation around the profit outlook for the Wall Street bank after it painted a grim picture with its second-quarter financial results.

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Revisiting narratives through the 10Q lens.

by SARA KHAIRI

2023 was a rough year for financial firms. But it was particularly tough for publicly listed companies that were subjected to investor skepticism, critical analyses, and the erratic trajectories of stocks in a turbulent market. Despite these challenges, there were glimpses of small wins as some stocks rebounded from losses, as financial firms reworked their strategies and unveiled expansive roadmaps for 2024.

Let’s take a look into both the trials and triumphs of some of the leading public companies over the past year and recent developments that have taken place.

Seeking solutions or attracting more problems?

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