How to Build AI for Continuous Learning That Meets Compliance Standards
Is banking ready to trust artificial intelligence (AI) to teach? Supplementing learning and development programs for financial institutions with trained AI is about much more than latching on to a fast-advancing megatrend, argues at least one proponent of the technology in a presentation for ProSight. While he and others caution banking leaders to keep human […]
Extreme Weather Is Moving Into the Credit File
Banks are finding it harder to treat hurricanes, floods, wildfires, and other extreme weather events as distant environmental problems. The effects are starting to show up in the places lenders watch most closely: borrower cash flow, insurance costs, collateral values, and portfolio risk. Some institutions are beginning to bring forward-looking weather and climate data into financial models that traditionally […]
Deposits Are Recovering—Just Not Everywhere
The deposit picture is getting a little better, but nobody should mistake that for a boom. In ProSight’s latest “State of U.S. Deposits” webinar—drawing on benchmarking that covers around $4.4 trillion in consumer deposit balances—the headline on consumer balances was modest improvement: 2025 finished up about 1.5%, better than the year before but still “relatively low overall,” as Tom Hoscheidt, managing […]
Fraud Model Validation Gets Tougher in the AI Era
Fraud model validation was never easy. But Chandrakant Maheshwari, lead model validator at Flagstar Bank, told ProSight that AI is making the job even more demanding—not just because banks are using new tools, but because fraudsters are too. Recently, ProSight spoke with Maheshwari about fraud trends, validation standards, AI adoption, and the growing complications around model […]
AI Is Making Fraud Faster, Cheaper, and Harder to Contain
AI is changing cyber fraud in ways that go beyond better phishing emails or more convincing deepfakes. What is different now is the speed, scale, and precision that the technology brings to both attackers and defenders. Lisa Matthews, an independent AI and cybersecurity consultant who recently served as Ally Financial’s senior director of cybersecurity compliance, told ProSight that banks are facing a […]
When Efficiency Cuts Start Cutting Revenue
Banks know the efficiency ratio matters. The harder question is what happens when the push to improve it starts weakening the very revenue base that keeps the ratio healthy in the first place. That tension runs through a recent ProSight article on efficiency management, which argues that cost control works best when banks stop treating […]
In the Fraud Fight, the Branch Can Still Be a Powerful Classroom
Fraud education does not have to live in the background—buried in generic emails, statement inserts, or website fine print. For banks looking to make the message stick, the branch can still do something digital channels often cannot: create a focused, personal moment. That was a clear theme in ProSight’s recent look at how branch leaders can use their physical […]
Where Consumer Stress Could Show Up First
The odds of a recession appear to be rising as higher oil prices, weaker job growth, and pressure on household budgets cloud the outlook for an economy that was already showing signs of strain. Economists quoted in a CNN article say that if energy costs stay high and consumers start pulling back on shopping, travel, and dining out, the […]
Why ATM Jackpotting Demands More Than Physical Security
ATM jackpotting is no longer a niche threat. According to a February FBI advisory, 700 of the 1,900 attacks tracked since 2020 occurred last year, totaling more than $20 million in losses. Data from the ATM Industry Association through November 2025 show just how dominant the tactic has become: 72% of all reported ATM crime last […]
The Instant Payments Decision: Choosing a Strategy in a Fragmented Faster Payments World
ProSight Banking Strategies · The Instant Payments Decision: Choosing a Strategy in a Fragmented Faster Payments World In this episode of the ProSight Banking Strategies Podcast, Frank Devlin speaks with Mark Majeske, SVP of Faster Payments at Alacriti, about the rapid evolution of instant payments in the U.S. banking system. They explore where real-time […]
Redrawing the ERM Map for an Evolving Risk and Competitive Landscape
Given today’s evolving competitive, regulatory, and risk landscapes, the enterprise risk management (ERM) functions at financial services firms are in the midst of a transition. Against this dynamic backdrop, leading ERM models leverage their firmwide perspective to strategically position their organizations to manage downside risk while exploiting upside opportunities. Toward this goal, ERM functions are […]
ACH Fraud and Nacha’s New Rules: Why Now Is The Time To Act
The scale and sophistication of consumer scams in today’s digital economy are staggering. Globally, losses related to these scams reached $43.6 billion in 2023, with business email compromise (BEC)—a type of social engineering attack that exploits trust in email communications—accounting for $6.7 billion in losses alone. Despite this risk, the Association of Financial Professionals reported […]
How Agentic AI Will Make Banking More Human
The irony of artificial intelligence (AI) is that it might just bring a human sensibility back to a world gone digital‑first. That’s because the greatest value of AI isn’t replacing humans—it is scaling human capability. The financial institutions that surge ahead in 2026 won’t be those that automate the most with AI. They will be […]
Fraud’s Frontlines: How Small Banks and Credit Unions Must Prepare in 2026
As we approach 2026, small banks and credit unions face an increasingly hostile fraud landscape shaped by AI‑powered scams, rapid digital transformation and evolving regulatory demands. These financial institutions, often operating with limited resources and legacy systems, are now prime targets for sophisticated fraudsters exploiting systemic vulnerabilities. The digital acceleration of financial services has brought […]
Beyond the Hype: Leveraging AI for Purposeful Transformation in Banking
Artificial intelligence (AI) has reached an inflection point in financial services. As we approach 2026, financial institutions are no longer asking if AI matters, but how to use it in ways that change the business. More than a marketing buzzword, AI has become an essential driver of efficiency, security and customer engagement. To realize its […]
Small Business, Big Stakes: Why SMBs Are the New Growth Engine
Hardly a day goes by without each of us transacting with a small‑ to medium‑sized business (SMB). From dry cleaners to coffee shops, we’re surrounded by small businesses that make our lives more convenient. And these businesses represent an enormous opportunity for community and regional financial institutions to expand revenue and grow their accountholder bases. […]
Thoughtful Banks Can Win Customers When Anxiety Hits the Kitchen Table
Consumers want lower fees, better rates and cash incentives to switch financial institutions as concerns about affordability and economic prospects for the year ahead begin to weigh on their banking decisions. In the ProSight Banking Outlook: 2026 Trends survey studying consumer trends, 1,000 respondents split evenly among Generation Z, Millennials, Generation X and Boomer+ cited […]
Branches Endure As Digital Fatigue Creeps In
Branches are important community anchors for banks, even as customers increase the use of digital services for completing everyday financial tasks. Without physical locations, institutions risk missing valuable opportunities to help consumers tackle challenging financial issues and navigate important life events—the moments that build trusted, lasting client relationships. In the ProSight Banking Outlook: 2026 Trends […]
Institutions Pulling From a Bag of Diverse Tactics To Win Deposits
Banks expect to grow deposits next year as they invest in upgrading digital services and defending against the growth in fraud, findings from the ProSight Banking Outlook: 2026 Trends survey show. Consumers expect to save more, too, but their confidence in their own financial picture is beginning to wane. ProSight surveyed leaders at U.S. banks […]
Beyond Prompts: Why Enterprise AI Demands Context Engineering
Enterprises are discovering what the hype around generative AI (gen AI) can sometimes obscure: large language models are convincing but inconsistent without the right data. Markets move on data and analysis. A misplaced figure, stale disclosure or made‑up data point can make the difference between sound judgment and a costly error. That’s why the true […]
Reimagining the Contact Center: Practical AI Wins in Banking
Banking leaders have reached a critical inflection point in customer engagement. Contact centers, once seen as cost‑heavy necessities, are now under pressure to do more than answer calls—they must scale seamlessly across channels, meet rising expectations for immediacy, and deliver consistent value under tighter budgets. It can seem like a zero‑sum game: reduce costs […]
Valuing Data Accuracy, User Feedback, and Humans in the Loop in AI Adoption
What does it take to effectively deploy artificial intelligence across multiple bank functions? Is phased, situational deployment preferable or, in fact, inevitable? How can financial institutions scale existing efforts when new technology constantly resets the board? As generative AI (gen AI) adoption for personal and professional use grows, and interest in agentic AI builds, banking industry consultants and practitioners see some important themes emerging: Incorporating user feedback is […]
The ‘Golden Thread’ of Resiliency: Why Entity Verification is Vital in Modern Banking
In today’s volatile financial landscape, operational resiliency is no longer a defensive posture but a strategic imperative. For banking executives, building an institution that can withstand regulatory pressure, manage complex risks, and adapt to market shifts is paramount. Yet, the greatest threat to resiliency often lies hidden in plain sight: a mess of inconsistent, siloed […]
Where is the Industry Headed With Open Banking?
The course of open banking is shifting fast, driven by new or altered regulations, evolving consumer expectations, and competitive pressure from fintechs and larger banks. For regional and community financial institutions, this isn’t just about compliance—it’s an opportunity. Regulatory Crossroads The Consumer Financial Protection Bureau’s (CFPB) Section 1033 rule, finalized in late 2024, was the catalyst. It legally mandates that financial institutions enable consumer-authorized […]
Five Ways a Multi-vendor Tech Stack Can Increase Your Risk
You’ve probably heard the phrase “Don’t put all your eggs in one basket.” In financial services, diversifying can be a practical risk management strategy. But when it comes to your IT infrastructure, vendor diversification can have unintended, and potentially dangerous, consequences. While using multiple third parties may appear to reduce dependency on any single provider, it can actually introduce significant operational and cybersecurity risks while reducing effectiveness. Though the reasons for engaging multiple providers in areas such as telecommunications […]
How Extreme Weather Is Reshaping Credit Risk—and Opportunities—for Banks
Extreme weather is moving from a distant environmental concern to a direct financial risk for banks and other financial institutions, analysts from Jupiter Intelligence said during a recent ProSight webinar. Risk managers increasingly recognize that hurricanes, floods, wildfires and other events can disrupt borrowers’ cash flows and affect the value of the assets securing loans. “Financial institutions, when […]
Cyber Fraud and AI: How Banks Can Navigate a Tangled Minefield
The proliferation of AI and cyber risk is driving huge fraud losses at banks. At the same time, however, banks are increasingly deploying generative AI and agentic AI solutions to catch and prevent fraud. “The technologies reshaping the threat environment also represent incredibly powerful tools for banks. For example, AI-driven behavioral analytics can detect anomalies […]
Fraud Model Validation: A Q&A with Flagstar’s Chandrakant Maheshwari
Even before the rise of AI, fraud model validation was an incredibly difficult task. But with the explosion of generative AI (gen AI)—and the more recent ascension of agentic AI—testing, evaluating, and verifying fraud models has become a monumental challenge. Cybercriminals are exploiting technological advancements to execute AI-driven scams, like account takeovers, phishing, and security identity fraud, that look and sound authentic. Meanwhile, modelers […]
Leverage Branches as Effective Learning Hubs in the Fraud Fight
Branch leadership can think creatively even when it comes to one of the most serious issues facing banking today: minimizing fraud. ProSight regularly engages with fraud and cybersecurity experts who stress that as routine banking reaches across several channels, branches provide a personalized and conversational atmosphere, focused audience attention, including personnel, plus traction within the community. Targeted fraud education efforts might include well-placed signage, inviting small business leaders for in-person workshops on detecting fakes from a batch of legitimate checks, or hosting breakroom pub-style […]
Cyber Risk and AI Are Reshaping the CRO Agenda
Cyber risk and technology remain persistent concerns for banks—but new technologies are changing how those risks emerge and how institutions must manage them. In ProSight’s 2026 CRO Outlook Survey, 74% of chief risk officers identified cyber risk and technology as a top-five risk. The survey—conducted with Oliver Wyman and based on responses from more than 140 CROs and equivalents across North America—highlights how developments in AI, […]
Insurance Volatility Raises the Stakes for Lenders
Property and casualty insurance costs are moving from background expense to front-line credit issue. Rising premiums and shrinking availability are reshaping borrower financial health—and lender exposure. Many expect higher costs to persist. The First Street Foundation forecasts roughly $1.5 trillion in net weather-related property losses over the next 30 years—uninsured losses borne by borrowers and lenders. Donald Sheets, lecturer […]
Legacy Economic Data, Modern Banking Risk
Banks rely on headline economic statistics to shape strategy, underwriting, and stress testing. But what if those numbers no longer reflect how people actually live? In a conversation with ProSight, former Comptroller of the Currency Gene Ludwig argues that many federal statistics rely on definitions “created in the 1930s or earlier” and built for a very different labor […]
Branches Find New Life in Omnichannel Banking
Branch closures are slowing to a crawl—and banks are getting more intentional about what physical presence means in an omnichannel world. From January to September of last year, 542 branches closed—the fewest since 2011, according to S&P Global data cited in ProSight’s February 2026 Executive Report. As Rachel Koning Beals explains in her lead article, the shift isn’t a return […]
Deposit Growth’s K-Shaped Reality
If you’ve been feeling like you’re working twice as hard to move the needle on deposits lately, you’re not alone. While deposit growth and customer acquisition remain the top priorities for bankers, our latest Banking Outlook research suggests that the “how” of winning those balances is shifting. John Rountree, ProSight’s head of client engagement, and Research Intelligence Expert Mark Riddle recently dug into the data […]
As the Iran Conflict Widens, Banks Face New Pressures
Earlier this week President Trump said he believes the conflict in Iran could last “four weeks,” while Chairman of the Joint Chiefs Gen. Dan Caine emphasized this was not a “single, overnight operation.” That matters for banks. A recent American Banker report outlined several potential pressure points for the industry if the conflict drags on. Here are some key takeaways from the article: Energy […]
Banks Layering Protections Against Jackpotting Surge
ATM jackpotting crime is surging. The Federal Bureau of Investigations warned banks in a February advisory that of the 1,900 such attacks tracked since 2020, 700 totaling more than $20 million in losses occurred last year. Data from the ATM Industry Association through November 2025 show that 72% of all reported crime related to ATMs last year was jackpotting/cash-out attacks, with physical attacks on ATMs now representing less than 10% of all […]
2026 and the K-Shaped Economy
In 2025, the U.S. economy remained strong, notwithstanding a surprisingly low 1.4% increase in GDP in the fourth quarter. Woven into the fabric of generally good economic numbers were some disconnects. While the numbers showed a muscular economy compared with 10-year averages, it was experienced as a K-shaped economy—with the higher-end earners thriving, while the other end of the spectrum was struggling. Projecting the rest of 2026, the economy shows signs of maintaining its strength, with growth […]
Reflections on AI, Regulation, and Other Themes From the 2026 ProSight CRO Outlook Survey
ProSight recently spoke with three subject matter experts who were instrumental in the creation of its 2026 CRO Outlook Survey to get their perspectives on the results and the risk challenges ahead. Oliver Wyman Partner Michael Duane and OW Principals Christian McNally and Jake Ritchken noted that cyber risk and AI were front and center in the survey, while the shift in regulatory focus under the Trump administration has been a significant development. Conducted in collaboration […]
Credit Risk Concerns Amid Insurance Market Instability
The cost of insurance has risen dramatically in recent years, and in some markets it is less available. As a result, residential and commercial property owners and their lenders face financial uncertainty and new degrees of risk to their operations and lending portfolios. At a ProSight Annual Risk, Compliance & Fraud Virtual Conference session, panelists said the current environment calls for a renewed focus on […]
The Credit Card Cap Debate Isn’t Over
Earlier in this newsletter, we examined consumer credit risk in credit cards and auto loans. Now, attention turns to a related policy question: whether a federal cap on credit card interest rates could reshape that landscape. The January 20 date President Trump initially proposed to begin a 10% cap has passed without action. But the issue remains active. On […]
Credit Cards, Auto Loans, and the Risk Outlook Ahead
As banks shape their 2026 playbooks, consumer credit risk is front and center. Americans’ total credit card balance reached $1.233 trillion in the third quarter of 2025—the highest level since the Federal Reserve Bank of New York began tracking the data in 1999. Auto debt is also elevated at $1.66 trillion, and as of October 2025, a record 6.65% […]
After the Tariff Decision: Refunds, Financing, and Uncertainty
In the wake of the Supreme Court’s 6-3 ruling Friday disallowing the International Emergency Economic Powers Act (IEEPA) as a basis for President Trump’s tariff policy, two economists told ProSight they expect the administration to try levying tariffs through other authorities—but said getting workarounds in place would take time. The ruling creates a near-term gap in tariff revenue. Meanwhile, they […]
Romance Scams and the Risk to Your Customers
On Valentine’s Day, Rachel Koning Beals reminds us that romance and confidence scams work by building trust first—and asking for money later. Victims believe they are in a real relationship—romantic, friendly, or even familial—and are tricked into sending money, personal and financial information, or items of value. In some cases, they may even launder money […]
‘Servant Leadership’ as a Risk Management Tool
A team-first “servant leadership” approach can strengthen a bank’s risk management by clarifying responsibility, improving communication, and reducing handoff failures or policy misinterpretation. That’s the case made by Christy Foster, executive director of loan operations at United Community Bank, who shared practical guidance during a presentation to ProSight’s RMA Gulf Coast Chapter. Servant leadership asks […]
The North Korean Threat Hiding in Hiring
North Korea’s latest threat to U.S. institutions doesn’t arrive through missiles or malware. It shows up as a job candidate. In a recent ProSight article, bank fraud executive Cara Wick describes how the Democratic People’s Republic of Korea (DPRK) is exploiting global demand for technical talent by placing highly skilled North Korean nationals into U.S. […]
Mismeasurements and Misunderstandings: How Outdated Economic Data Creates Risks for Banks
Gene Ludwig served as the 27th Comptroller of the Currency of the U.S. under President Bill Clinton. As a seasoned bank executive, he had an inside seat managing the impact of fiscal policy, risks, and regulation on bank operations. Now a champion for improving the economic well-being of low- and middle-class Americans, he runs the […]
The Credit Card Cap Is Still a Conversation
The January 20 date that President Trump initially proposed to start a 10% cap on credit card interest rates may have come and gone without any action, but the topic is still on the minds of industry leaders and watchers—and politicians. On February 13, speaking to Bloomberg Radio, White House trade advisor Peter Navarro called […]
Breaking Down Consumer Credit Risk: This Year’s Top Trends and Challenges for Banks
As U.S. banks develop their playbook for 2026, record-setting levels of credit card and auto loan debt are top of mind, fueling concerns about a potential recession. What are the causes of this debt? How can banks address it, and what should be the real level of worry about an economic downturn? Americans’ total credit […]
Financial Institutions Can Be Stronger Partners Against Romance Scams
Love gives, love takes—sometimes it lowers our guard. Fraudsters know it. For people seeking companionship, romance and confidence scams exploit loneliness and trust to steal money and sensitive information. Romance scams can feel like a real relationship until they don’t. Victims may share financial information or send money, only to learn later that the connection […]
Breaking out: One industry leader’s insights on using benchmarking data for growth
“If your bank isn’t leveraging third party benchmarking data yet, now is the time to start.” – Matt Steenson, EVP and Head of Retail Growth Strategies at PNC With decades of experience at PNC, Steenson knows a thing or two about growing a business. He’s worked across several disciplines, including deposit products, finance, business banking, […]