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Notes on the Journey From Operational Risk to Operational Resiliency

Over the last few years, ProSight and RMA have made significant steps to highlight the widening of the industry’s focus on operational risk to prioritize operational resiliency as well. For example, ProSight’s premier spring virtual conference, GCOR, and its former Operational Risk Council have added “resiliency” to their names and missions. More recently, members of […]

Alcohol Demand Is Softening—Now What?

Declining alcohol consumption—especially among Millennials and Gen Z—is starting to reshape the risk profile of breweries, wineries, distilleries, and the suppliers that serve them. A ProSight article by Amy Short, director of research at industry intelligence provider Vertical IQ, frames the shift as slow but steady—one that can materially affect borrower resilience, revenue predictability, and […]

Generative vs. agentic AI: A brief explainer

When financial institutions and, really, almost anyone referenced “artificial intelligence” from 2023 to 2025, they likely meant “generative,” or “gen,” AI. The public unveiling of ChatGPT and its gen AI content-creating capabilities in November 2022 launched an industry race for productivity, utility, and efficiency that has consumed banks ever since. But AI wasn’t new to […]

When Fraud Meets Cyber, Silos Become the Risk

Criminals don’t care how your org chart is drawn—and banks are paying for it in duplicated work, slower response, and frustrated customers. Across institutions, a consistent point is emerging: when fraud and cyber threats overlap, the biggest vulnerability often isn’t detection—it’s coordination. Here are a few practical takeaways leaders have highlighted for tightening fraud-cyber cooperation. […]

The AI ‘Tsunami’ and the Talent Question Banks Should Be Watching

AI-driven job disruption is showing up in the employment data—and the window to prepare is closing. That’s the blunt argument in a MarketWatch essay by Daniel Gorfine, a former chief innovation officer at the U.S. CFTC who now runs Gattaca Horizons and teaches at Georgetown University Law Center. Gorfine points to early signals that the […]

Ask the Workout Window: A Field Exam Uncovers a House Built on Sand

In each issue of The ProSight Journal, veteran workout leader Jason Alpert gives advice on thorny workout challenges. Have a challenge you would like Jason to address? Send your question to [email protected].  Jason would like to thank the Oklahoma Chapter of RMA for submitting the following question. QUESTION: I manage a commercial portfolio that includes a sub-$10 […]

President Trump’s 10% Rate Cap Puts Card Economics in Play

With President Trump calling for a 10% credit card interest cap to take effect Tuesday, key questions about enforcement and scope—including whether existing balances are included—remain unresolved as of this writing. The practical issues for banks don’t end with whether APRs fall, and include what a cap would mean for credit availability, pricing, rewards economics, […]

Economy On Firm Footing as 2026 Kicks Off, Economist Says

ProSight Financial sat down with John Silvia, founder of Dynamic Economic Strategy and formerly chief economist at Wells Fargo, for a readout on the U.S. economy and what it means banks in the year ahead. He discusses why the impact of tariffs on inflation has been muted; the potential long-term impact on oil prices of […]

How Social Media Is Fueling Check Fraud

Many Americans still write checks for at least some transactions—a preference that leaves consumers and financial institutions exposed to mail theft and check washing. Today’s mix of paper checks and digital payments requires fraud defenses across banking touchpoints. And while “low tech” check writing persists, a near ubiquity of smartphones (and other connected devices) and […]

Credit Risk Trends Community Banks Should Watch in 2026

Community bank credit leaders are managing an unusually wide set of pressures—from AI-powered fraud to shifting tariffs, CRE uncertainty, and growing competition from private credit and fintechs. At ProSight’s Annual Risk, Compliance and Fraud Virtual Conference, three chief credit officers shared what they’re watching most closely. Fraud is faster, smarter, and increasingly AI-driven. Orrstown Bank […]

Credit Cards, Consumer Stress Signals, and the New Fraud Arms Race

Even if credit cards aren’t your day-to-day focus, the CFPB’s latest review of the consumer credit card market—which includes data through 2024—offers a useful read on consumer behavior and risk signals that ripple across banking. The headline numbers are a reminder of both scale and strain: purchase volume rose to $3.6 trillion in 2024 (up […]

How Risk and Compliance Teams Can Put AI to Work Without Losing the Plot

AI talk in banking often starts with risk: What’s the exposure if a vendor (or a fourth party behind them) is using AI in ways you can’t see? This ProSight Q&A with Brett Pharr, CEO of the nationally chartered bank Pathward, doesn’t dodge that question—but it also pushes the conversation forward. Pharr’s core point: if […]

As Threats Converge, Banks Rethink Fraud-Cyber Cooperation

Criminals today move seamlessly across digital channels. Banks, for the most part, still have gaps. That’s due in large part to fragmented technology.  As fraud and cyber threats increasingly overlap, many financial institutions are discovering that their biggest vulnerability is not detection, but internal coordination. Fraud teams, cybersecurity teams, and frontline staff often investigate the same incident separately, using different systems, timelines, and definitions of success. This disconnect can […]

Branch Strategy, Repriced

Branch banking’s obituary was premature. ProSight’s latest Perspectives report finds branches still matter most for “difficult or complex transactions”—often the ones that generate the most revenue. The data also challenges the assumption that physical branches are primarily valued by older customers: in the 2026 ProSight Banking Outlook, a survey of 1,000 respondents conducted in September, […]

Can AI Help Bank Marketing Connect with Humans?

Banking professionals wonder whether generative artificial intelligence (gen AI) is a poor substitute for the human touch, experience, and nuance that customers appreciate in an industry built on trust and reliability. Considering the risks and doing the due diligence is a must before AI adoption, including for marketing teams. But what if gen AI can […]

A Practical CRO Playbook for Tech Risk, Fraud, and Vendor Sprawl

Financial and operational risks are accelerating at North America’s banks—fueled by sophisticated criminal schemes and by technology exposure tied to new offerings and complex third-party networks. In a ProSight virtual conference session that also drew on the 2026 ProSight CRO Outlook Survey, three chief risk officers laid out what they’re prioritizing right now. They also […]

Leveraging AI to Fortify Risk Management and Compliance 

A version of this Q&A originally ran in the October Executive Report. Explore the issue, Compliance and Risk: Building Operational Resiliency, for more insights on supporting sustainable growth amid omnipresent uncertainties in a speedier, technology-reliant marketplace. Even as financial institutions explore more use cases for automation and artificial intelligence (AI)—including for catching up on contact […]

Generational Consumption Changes Are Redefining Risk in Alcoholic-Beverage Makers

Declining alcohol consumption among younger age groups is reshaping the financial outlook of the nation’s breweries, wineries, and distilleries, and the suppliers that serve them. For risk management professionals, it is essential to understand how this slow-but-steady erosion in alcohol consumption impacts borrower resilience, revenue predictability, and collateral values. Recent data from Gallup shows that […]

CROs Are Focusing on Technology Amid Accelerating Risks

Financial and operational risks are accelerating at North America’s banks, driven largely by sophisticated criminal schemes and banks’ technology exposure tied to new offerings that can require collaboration with complex networks of third parties. In response, risk leaders are calling for strengthening their institutions’ risk governance infrastructure, data management, IT systems, and oversight of third-party […]

CRO Panel Recommends Cultural and Practice Adaptability As Risk Landscape Evolves

Chief risk officers from leading financial services companies highlighted the growing interconnections of risk in banking and the importance of adapting to a new regulatory environment at a recent member event organized by the NYC Chapter of RMA. Moderated by Jonathan Hummel, CRO for the Americas at Deutsche Bank, the panel included CROs Alex Golten […]

What To Do With an Inherited Troubled Loan?

When banks acquire other institutions, they often inherit credits that don’t neatly fit their own standards. In the latest installment of Jason Alpert’s Workout Window column, a newly acquired lower-middle-market borrower has a $5.25 million revolving line that was loosely structured, lightly monitored, and routinely over-advanced by their previous bank. Now the borrower is asking […]

What Banks Can Do Now To Get Ahead of Geopolitical Risk

Geopolitical risk is no longer something only global banks need to track. A recent ProSight article by Matt Schiavenza describes how tariffs, supply-chain shocks, technological disruption, and fast-moving global events are reshaping banks’ risk profiles and day-to-day decisions. Ludwig Advisors’ Mark Midkiff noted that foreign exchange, interest-rate, and stock markets are closely tied to geopolitical […]

SWIFT’s Blockchain Pivot: A Practical Checklist for Banks

SWIFT—the network banks use to send most cross-border payment instructions—is piloting a blockchain-based payments platform for digital assets. Developed with Consensys, the pilot is designed to use smart contracts, connect with legacy rails, and enable 24/7 cross-border payments. With the GENIUS Act clearing space for U.S. banks to use stablecoins, KPMG’s Eamonn Maguire, a managing […]

The Challenge of Balancing Fraud Mitigation and Customer Experience

Every financial institution wants a seamless experience for their customers. That includes a frictionless authentication experience that won’t leave customers frustrated, or feeling like a fraudster themselves. Banks also know that friction is part of fraud mitigation, so a certain amount is unavoidable. But how much friction is enough? Or too much? We sat down […]

Proactive Moves for All Banks Touched by Geopolitical Risk

In recent years, the post-World War II pact guiding global affairs has begun to come apart. Trade friction is a primary catalyst. Revenue-generating tariffs in developed and developing countries to bridge uneven growth, pay off debt, or exert power have impeded free trade, while regional deals further entangle the global transactional web. Most prominently, China’s […]

Insider Threats, HIPAA, and What Banks Need To Keep in View

Insider Threats, HIPAA, and What Banks Need To Keep in View Insider threats are growing in frequency, cost, and impact. In a recent RMA Journal article, Stephany Head—a strategic legal and policy professional who has advised federal agencies—notes that, according to the “2024 Insider Threat Report” by Cybersecurity Insiders, “83% of organizations reported at least […]

Community Bank Leaders on Fraud, Credit, and Growth

A group of professionally dressed people sit in rows, smiling and applauding, at what appears to be a business conference or seminar.

Community bank leaders are heading into the new year focused on three things: fast-changing fraud, a long credit cycle with no obvious turning point, and the need to compete on service and differentiation in their own markets. Those themes anchored a wide-ranging conversation at ProSight’s Annual Risk, Compliance, and Fraud Virtual Conference, where members of […]

SWIFT Goes On-Chain: A First Look for Banks

SWIFT—the network banks use to exchange cross-border payment messages—is moving beyond messaging to pilot a shared-ledger platform aimed at faster, lower-friction cross-border settlement. We asked KPMG’s Eamonn Maguire, managing director in the customer and operations financial services practice, and his colleague Brian Consolvo, a principal in the advisory practice, to explain what this shift looks […]

Community Banker Perspectives on Fighting Fraud, Respecting the Credit Cycle, and Seizing Opportunities

Community banking leaders live, work, and invest alongside the businesses, families, and individuals they serve. That’s a competitive advantage when a situation calls for high-touch banking, they say. When new technology can reinforce the local-banking touch—such as with mobile banking to reduce staffing burdens and encourage talent upskilling, or through data analysis that informs smarter […]

The Rise and Risks of NDFIs: What Banks Need To Know

Non-depository financial institutions (NDFIs) have become a powerful force in U.S. credit markets—and a growing area of exposure for banks. As of Q1 2025, banks held $1.14 trillion in loans to NDFIs, according to the St. Louis Fed, with nearly half of that tied to mortgage and private credit intermediaries. The relationships can be profitable. […]

Repo Rates Are Rising. Here’s What Banks Should Watch

Short-term dollar funding is getting bumpy again—and the Fed is reportedly working behind the scenes to keep it from turning into a problem. The general collateral (GC) repo rate—the price banks and dealers pay to borrow overnight cash against Treasurys or other high-quality securities—has been trading above the top of the Fed’s target range even […]

Closing the Gaps in Workplace Security

Cyber may grab the headlines, but certified security consultant Felix P. Nater’s message to employers is blunt: “Companies have a moral, ethical, and legal responsibility to provide employees safe work environments free from potential acts of violence.” In a recent Q&A with ProSight, the president of Nater Associates Ltd. and retired U.S. Postal Inspector and […]

Deposit Strategy in a Rate-Cut Cycle: A New Spin

In a typical easing cycle, banks cut deposit rates quickly and lending rates more slowly—capturing margin as long as deposits and loan demand hold. But for some banks, this current cycle is different. Structural shifts in depositor behavior, driven largely by younger consumers, digital adoption, and nonbank competition, are prompting some institutions to revisit the […]

Risk IRL: Mitigating Security Risks Offline Requires a Proactive Approach

In an age when cyberattacks and data breaches dominate headspace, several high-profile incidents—from workplace violence to threats against corporate executives—have reminded us that protecting people and physical sites is just as critical as safeguarding networks. The merging of cyber and physical security vulnerabilities means companies must think holistically about security, ensuring that prevention, swift intervention,  […]

Deposit Rates and an Easing Fed: A Contrarian View

Deposit Rates and an Easing Fed: A Contrarian View Banks usually cut deposit rates during Federal Reserve easing cycles, including the one we’ve just entered. When they do, the reductions are often bigger and happen faster than those on lending rates. The benefit accrues to net interest income so long as deposit levels and loan […]

Cyber, Fraud, and AI: Linked Risks, Multiple Entry Points

Technology and cyber risk now sit at the center of numerous banking challenges—and they’re increasingly fueling fraud. In ProSight’s 2026 CRO Outlook Survey, 74% of respondents ranked technology and cyber among their top five risks. CROs said the ongoing push toward digitalization and AI gives bad actors more ways in, while connecting new systems to old infrastructure creates integration weak spots. Geopolitical […]

The Rise and Risks of NDFIs

In a recent report, the Federal Reserve Bank of St. Louis detailed the size of the non-depository financial institutions (NDFIs) sector and the level of exposure traditional banks have to it. As of first-quarter 2025, according to the St. Louis Fed, U.S. banks held $1.14 trillion in loans outstanding to NDFIs, whose products are not […]

AI in Risk Management: From Pilots to Production

Banks are no longer treating artificial intelligence as an experiment. In ProSight’s 2026 CRO Outlook Survey—just out this week—54% of respondents said their institutions have AI in production, and 48% expect to have AI deployed in risk in the next two years. The focus has shifted from testing to scaling—and from curiosity to control. So […]

What the OCC’s New Approach Means for Community Banks

The OCC’s new “risk-based” supervision model for community banks is a notable shift—one that gives smaller institutions more breathing room, but also more responsibility. The regulator’s October announcement promises to “relieve these banks of regulatory burden and unproductive reporting requirements,” tailoring oversight to each institution’s unique risk profile. For community banks, experts say in a […]

Quantum Readiness: Why Banks Can’t Afford To Wait

The Financial Services Information Sharing and Analysis Center (FS-ISAC) recently warned the industry against “crypto-procrastination”—delaying preparation for the quantum era. Its September white paper urges global coordination on post-quantum cryptography (PQC), noting: “The time to prepare for quantum computing is arguably growing shorter, and the risks to security and resilience are clear.”  Dean Yoost, author […]

Culture Is the Strategy: Lessons From Huntington’s Matt Newman

Culture has become a top-tier concern for many banks—one that goes far beyond HR. In ProSight’s 2025 CRO Outlook Survey, 10% of respondents listed culture among their top risks, reflecting how reputation, engagement, and even risk management depend on it. Huntington National Bank Enterprise Culture and Onboarding Director Matt Newman recently told ProSight that culture […]

Private Credit’s Boom: What Bankers Need To Watch

The $2.5 trillion private credit market is reshaping corporate lending—and blurring the lines between banks and nonbank financial institutions (NBFIs). Once focused on “filling the gap” between bank loans and public markets, private credit has expanded into bigger, riskier deals. As Charles Cohen of the International Monetary Fund (IMF) told ProSight, “Private credit is potential […]

Considering the GENIUS Act’s Impact on Traditional Banking

The Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act is landmark legislation aimed at creating a comprehensive regulatory framework for payment stablecoins in the U.S. Signed into law in July 2025, this first-of-its kind federal guidance lays policy groundwork for integrating digital assets into mainstream finance. Estimates of the growth in stablecoin market […]

OCC Actions on Community Bank Supervision Offer a Moment for Risk Reflections

Community banks interpreting recent OCC supervisory changes might consider re-examining their risk profiles and shifting effort to risk management processes and reporting in areas of greatest institutional concern, experts say. With the regulator moving away from what some observers felt was a one-size-fits-most approach to community-bank oversight, going deep in key risks rather than broad […]

The 2026 ProSight CRO Outlook Survey: Technology’s Promise and Peril

This report is based on the 2026 ProSight CRO Outlook Survey, which was conducted in August and September of 2025 and prepared in collaboration with Oliver Wyman. Find out more about the survey, including the demographic profile of respondents, here. In a year defined by economic uncertainty, geopolitical tension, and rapid technological change, chief risk […]

The Rise of Private Credit: Trends, Risks and Competitive Implications for Banks

The rapid ascension of the private credit market has transformed the credit landscape, offering both competition to traditional banks and an alternative avenue of lending. But regulators have expressed concerns about whether banks’ escalating exposure to opaque and lightly regulated private credit funds could make them more vulnerable to systemic risks, particularly during times of […]

Commercial Real Estate’s Uneven Recovery—and What Banks Can Learn

Our recent webcast featuring Trepp’s Ian McCready and Andy Boettcher offered a detailed snapshot of the commercial real estate (CRE) and corporate loan markets heading into year-end 2025. The message: conditions in commercial real estate are improving but patchy, corporate lending remains comparatively stable, and banks’ credit decisions matter more than ever. Here are some […]

Making M&A Work: Lessons That Still Hold Up

After several quiet years, bank mergers are heating up again. Fifth Third’s recent $11 billion deal for Comerica has analysts predicting “a unique window of opportunity” for regional and community banks to pursue acquisitions in a friendlier regulatory environment. Wells Fargo Head of U.S. Large-Cap Bank Research Mike Mayo calls it “the period of the […]

Building Resilience That Goes Beyond Compliance

A new joint report from RMA’s Toronto Chapter and Canada’s Office of the Superintendent of Financial Institutions (OSFI) explores how banks can strengthen operational resilience in an era of constant disruption. Drawing on perspectives from regulators and financial institutions (last week, the chapter held an executive roundtable with the large Canadian banks), the report outlines […]