Posted on

Banking: AI, automation, and the rise of digital-first scale

    The new battleground in banking is intelligent operations and scalable execution.

    In 2026, banking is about moving money smarter, faster, and with fewer humans in the middle. Across corporate finance and global retail operations, banks are experimenting with technology and operational design in ways that challenge long-held assumptions about scale, speed, and control. 

    Three recent developments exemplify what’s happening in money movement: Goldman Sachs deploying AI agents, Truist automating corporate receivables, and Nubank expanding abroad with a lean digital model. All demonstrate how the modern banking playbook is evolving.

    Case Analysis 1: Goldman Sachs’ AI agents as “digital colleagues”

    Goldman Sachs is testing a new frontier in operational finance: it’s deploying autonomous AI agents built on Anthropic’s Claude mode to enhance internal productivity and streamline workflows. These agents are undergoing trials for rule-based tasks such as transaction reconciliation, trade accounting, and client onboarding; roles that have resisted automation for decades because of high regulatory and operational complexity.

    …

    subscription wall for TS Pro

    Posted on

    Why some major banks are bringing embedded finance in-house

      Inside incumbent banks’ push to own the embedded finance stack

      Capital One has spent the past two years doing something unusual for many US banks: rebuilding itself in plain view.

      First came the Discover acquisition in 2024, a move widely read as a scale play that gave Capital One greater reach across credit cards, payment rails, and consumer financial infrastructure. Then came the Brex acquisition announcement in January 2026, a very different kind of asset on paper, but one that fits a similar underlying logic. 

      These deals signal that Capital One is collapsing the distance between product and distribution, software and balance sheet, embedded finance and the bank itself. This isn’t about cards. And it’s not really just about M&A. It’s about ownership.

      Two deals, one story

      …

      subscription wall for TS Pro

      Posted on

      UBS’s US Charter: From a global wealth powerhouse into a full-service US bank

        How UBS is strengthening its operations, tech, and competitiveness in the world’s largest retail banking market.
        When you think of UBS, the Zurich-headquartered firm and one of the world’s largest wealth managers operating in over 50 countries, the first things that come to mind are exclusive clients, Swiss banking discretion, and global investment services. In January 2026, UBS Group AG, already publicly traded on the SIX and NYSE, signaled a broader ambition after receiving conditional approval from the U.S. Office of the Comptroller of the Currency (OCC) for a national bank charter. 
        The bank charter gives UBS the regulatory authority to accept deposits, expand checking accounts, and offer traditional lending products directly – a significant step beyond its historical US footprint focused on wealth and investment clients. For decades, UBS in the US operated largely as a wealth-centric entity, relying on brokerage and investment management platforms, rather than core banking relationships. With this bank charter, UBS moves into a domain where operational infrastructure, risk engines, and customer-facing technology are now mission-critical at scale.

        Why go for a US banking charter

        …

        subscription wall for TS Pro

        Posted on

        How a Brazilian digital bank is restructuring the fintech playbook – and why Wall Street is listening

          From São Paulo to Wall Street…

          When a challenger bank born in São Paulo opts for Wall Street for its IPO filing over its home turf, it raises a question no growth investor can ignore: What does it take for a digital bank from an emerging market to play on the world’s biggest stage – and what does that tell us about the future of public fintechs?
          Agibank is the second Brazilian fintech in recent weeks to take this route, just days after PicPay, also in São Paulo, announced similar plans. These moves point to a renewed appetite among Latin American digital lenders to tap global capital markets after years of dormant IPO activity in the region.
          But beneath the headlines, the ticker symbol AGBK, and a reported target of raising up to roughly $1 billion in proceeds, lies a deeper story about scaling fintech infrastructure, navigating risk, and building a technology platform that can serve millions without collapsing.

          A backstory of growth and reinvention

          Agibank didn’t start life as a fintech powerhouse. Its roots trace back to 1999, when founder Marciano Testa, then a college student, launched Agiplan as a credit distributor serving financially underserved segments – eventually evolving into Agibank and becoming fully digital in 2018.

          …

          subscription wall for TS Pro

          Posted on

          When Midwest roots meet Sun Belt growth: Fifth Third’s big bet on scale and relevance

            For Fifth Third, relevance and reach matter as much as scale.

            In today’s age, where finance is measured by margins, scale, and digital reach, strategic positioning matters as much as legacy positioning. For Cincinnati-based Fifth Third Bank [FITB], a storied regional bank with roots extending more than a century and a half, this reality has translated into decisive action. 

            In October 2025, the bank agreed to acquire Dallas-based Comerica Incorporated in a $10.9 billion all-stock transaction that materially expands Fifth Third’s scale, geography, and competitive posture as it enters 2026.

            It is one of the biggest regional bank acquisitions of 2025 and carries deeper significance.

            The deal highlights

            At its core, the Fifth Third–Comerica transaction is simple in structure but significant in impact:

            …

            subscription wall for TS Pro

            Posted on

            Morgan Stanley’s crypto ETF move – and the risk of getting ‘institutional crypto’ wrong

              The next phase of bank innovation

              For years, Wall Street’s approach to crypto followed a familiar script: offer access, avoid ownership, and keep product risk at arm’s length. Large banks distributed crypto-linked funds, approved selective exposure for wealthy clients, and built infrastructure, while refraining from issuing products themselves.

              Morgan Stanley’s early‑year filings signal a notable shift in that posture. 

              The bank plans to launch a spot Bitcoin ETF, a Solana ETF with staking exposure, as well as an Ethereum Trust offering staking rewards to investors for potential extra yield.

              The question attached to Morgan Stanley’s recent move

              …

              subscription wall for TS Pro

              Posted on

              Deposits vs. Payments – What drives more value for banks today?

                The new banking formula: deposits plus payments

                There was a time when banks and fintechs competed mostly on bells and whistles: smoother apps, faster checkout, appealing rewards. But in the world of public markets and quarterly earnings, functionality gives way to fundamentals. At the intersection of traditional banking and modern fintech lies a simple but growing question: what actually drives sustainable value for banks today?

                Is it the buzz‑worthy growth of payment volumes and new revenue streams – or the old‑school strength of deposit balances and net interest income? The answer isn’t as cut-and-dry as headlines might suggest; it’s a mix of factors.

                Banks that are expanding their deposit base while also focusing on building fee-based revenue, payments, and now blockchain payments are pursuing a hybrid model approach. If executed carefully, this model can strike a balance between stability and growth, keeping deposits at the core while payments support expansion. 

                SoFi is a case in point.

                …

                subscription wall for TS Pro

                Posted on

                The Financial Evolution of 2025: AI, Crypto, and Regional Banking

                  Brains, Blockchain, and Backbone: How finance evolved in 2025

                  2025 was anything but ordinary. AI evolved from tools to agentic decision-makers. Crypto roared back and shrugged off skepticism to reclaim a seat at the table. And regional banks, long content to play it safe and lurk in the shadows, began experimenting, innovating, and proving they can move differently yet fast.

                  As the year wraps up, we zoom in on the standout trends across publicly traded companies I covered this year — and what they signal for 2026.

                  Trend 1: AI — How AI found its place in banking, from a back-office helper to a decision-making partner

                  2025 began with a mix of fascination and unease around AI in the financial sector. There was a cloud of uncertainty: could AI take over jobs, reshape banking as we know it, or disrupt entire business models? At industry gatherings like the World Economic Forum 2025 at Davos, AI wasn’t just a topic – it was the topic. Panel after panel debated whether AI would be a villain, a tool, or a teammate.

                  …

                  subscription wall for TS Pro

                  Posted on

                  Goldman Sachs moves into predictable growth with Innovator acquisition

                    The Wall Street incumbent embraces stability over volatility in asset management

                    On December 1, Goldman Sachs revealed plans to acquire Innovator Capital Management, a provider of defined-outcome ETFs, bringing 159 defined-outcome ETFs and $28 billion in assets under management into its portfolio. This move underscores where the incumbent bank now prioritizes growth.

                    [Defined-outcome ETFs, also called “buffered” ETFs, are exchange-traded funds designed to deliver a specific, pre-set investment result over a defined period. They use options and derivatives to offer upside potential while limiting downside losses.]

                    This is a structural pivot. Innovator gives Goldman scale in one of the fastest-growing corners of public markets and nudges the firm a little further out from the revenue volatility that has long defined its dominance. The deal is expected to close in the second quarter of 2026.

                    Why Innovator, and why now

                    …

                    subscription wall for TS Pro

                    Posted on

                    What’s Left in the Shadows: How 90-year-old Webster Bank punches above its weight by combining purpose with profitability

                      A storied beginning and a forward-looking purpose

                      In 1935, with $25,000 borrowed from friends and family, Harold Webster Smith founded the First Federal Savings and Loan Association of Waterbury, Connecticut, to help people build homes during the Great Depression. His vision was that banking should serve the people around you, not just the bottom line.

                      Webster Bank founder Harold Webster Smith (right) makes the bank’s first loan to Joe Baltrush in December 1935 on the steps of his Waterbury home at 114 Chambers Street. Source: Webster Bank

                      The organization was later renamed Webster Bank when it went public in 2002 and converted to a national commercial bank in 2004, enabling broader service offerings while largely preserving its regional identity. 

                      Today, Stamford, Connecticut, serves as its headquarters, but its branches extend from suburban New York to Rhode Island and Massachusetts, giving it a solid regional footprint.

                      Webster Bank (NYSE: WBS) remains true to its ethos: serving communities across the Northeast while moving billions of dollars of healthcare payments and powering fintech platforms behind the scenes. 

                      Webster Bank’s evolution from a local thrift to a publicly traded commercial institution reflects a long-term focus. The bank serves clients across three key areas: commercial banking, consumer banking, and healthcare financial services.

                      In today’s 10Q edition: What’s Left in the Shadows, we shine a light on the less-talked-about publicly traded names in the industry that do their own thing but remain integral to the banking ecosystem.

                      …

                      subscription wall for TS Pro