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How Well Do You Know Your Digital Customer?

Digital account opening has grown into one of the industry’s most important acquisition channels, with 48% of Gen Z and Millennial consumers combined having opened an account online. But growth alone does not tell the full story. How many of those customers complete and fund the account? Who is being acquired? And how do their […]

The Model Risk Questions Senior Leaders Should Be Asking

Banks increasingly depend on models and analytical tools to support important decisions—from current expected credit losses and asset/liability management to cybersecurity applications, non-model tools, and emerging AI systems. That makes model risk management part of how institutions understand, challenge, and control the tools shaping risk across the enterprise.  ProSight’s Annual Survey on Model Risk Management, conducted […]

Fraud Strategy Needs a Generational Lens

Fraud prevention often starts with a familiar assumption: Older customers need the most protection. That is true in one important sense—older victims can suffer much larger losses when fraud succeeds. But an article by Cara Wick, a financial crimes compliance executive at Bank of America, makes a useful correction: Younger consumers are being hit hard, too, […]

When Fake Documents Look Real, Manual Review Falls Short

Fraud teams used to be able to catch manipulated borrowing applications by spotting mistakes: an odd format, a questionable pay stub, a detail that did not quite hold together. AI is making that harder.  In a ProSight Banking Trends webinar on AI-driven fraud, moderated by Jason Bartolacci, director of the ProSight Fraud Alert Network, Matt Overin, manager of fraud risk […]

Hidden Opportunities: How Banks Can Win More Small Business and Gen Z Relationships 

This article is part of ProSight’s series on the growing overlap between consumer and business banking as more Americans pursue side hustles, entrepreneurial ventures, and multiple income streams. For community banks and credit unions, these trends present an opportunity to engage future business customers earlier in their journey. In this Q&A, Chris McNulty, Director of […]

Beyond Personal Banking: Meeting Customers Where Entrepreneurship Begins 

As part of a series of ProSight articles on how financial institutions can better serve Gen Z consumers and the growing population of side hustlers and entrepreneurs, this Q&A explores the evolving intersection of consumer and business banking. With more people launching small ventures, developing multiple income streams, and testing business ideas alongside traditional employment, […]

Using an Article 9 Sale to Maximize Recovery

In each “Ask the Workout Window,” 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].    QUESTION: Our borrower is a small, branded consumer products company that’s out of money. We have a $4.25 million revolving line of credit (fully drawn and in default) secured by all […]

The Issues Management Blueprint

Today, as financial institutions contend with everything from geopolitical hazards and AI-driven transformation to regulatory volatility and evolving models for credit risk, it is critical to have a comprehensive and timely plan for resolving issues.  This is where issues management—the process of identifying, tracking, managing, and resolving issues related to operational, compliance, credit, and regulatory risk—comes into play. Indeed, effective enterprise risk management is not feasible without a consistent […]

Build Around the Customer, Not the AI Tool

AI may be changing the tools available to banks, but Chris Stanley’s message gets back to basics: Start with the customer’s need and profile, then work backward.  In a recent episode of the ProSight Banking Strategies Podcast, Stanley, banking industry practice lead at Moody’s, explained how banks and credit unions can deliver faster financing and risk decisions without […]

How Banks Can Make Deposit Incentives Pay Off

Deposit incentives can still attract attention. The harder question is whether they attract the right customers—and whether those relationships last long enough to justify the cost.  In the July ProSight Executive Report, “Profitable Growth in Banking,” the ProSight research team examines why incentive strategy has become a more exacting exercise. While 82% of financial institutions expect positive deposit growth […]

How Commercial Lenders Can Move Faster Without Cutting Corners

Commercial borrowers increasingly expect fast, tailored answers. Banks now need lending processes that can deliver speed, clarity, and customization while keeping credit discipline intact.  In a recent ProSight Banking Trends webinar, Matt Bryant, executive vice president and director of credit risk at Frost Bank, and Omar Akkor, senior director of banking product strategy at Moody’s, discussed how […]

Building a Multigenerational Fraud Strategy

Gen Z, it turns out, is the fraudster’s new mark.  While the industry grapples with the role of artificial intelligence (AI) in fraud, a fundamental question is whether we understand who fraudsters are actually targeting. Data from the Federal Trade Commission (FTC) indicates we may not.   The FTC’s Consumer Sentinel Network shows that 20-to-29-year-olds are more likely than older age groups to report […]

How Treasury Management Deepens Business Banking Relationships

Business banking relationships can become more valuable over time when banks understand how a company’s needs change—and build treasury management services into that lifecycle.  In the July 2026 ProSight Executive Report, Profitable Growth in Banking, Katie Kuehner-Hebert examines how treasury management can help institutions support business customers from basic banking through more complex cash management, liquidity, payments, and reporting […]

Where AI Fits in a Mature Fraud Program

The strongest fraud programs use AI to sharpen detection, reduce friction, and uncover connections across accounts, devices, identities, and transactions—while keeping people accountable for consequential decisions. That combination of automation, layered controls, governance, and human judgment is becoming increasingly important as fraudsters use the same technology to make attacks more convincing, easier to scale, and […]

What Lenders Need To Underwrite in AI Data Centers

The AI boom is creating a major financing opportunity for banks—but data centers come with risks that extend well beyond traditional commercial real estate underwriting.  The growth case is substantial. Revenue in the data processing and hosting industry rose 13.9% year over year in the fourth quarter of 2025, reaching nearly $114 billion. Industry sales are forecast to […]

What Banks Need To Include in Stablecoin Strategy

Stablecoins may diversify payment rails, but they also give fraudsters a new place to try old tactics—and introduce risks that are specific to digital assets.  In “New Currency, Same Dangers: Stablecoins and Familiar Risk Vectors,” published in the June 2026 ProSight Executive Report, Katie Kuehner-Hebert examines the decisions facing banks as they consider issuing stablecoins, participating in consortiums, […]

How Banks Can Win More of the Small Business Relationship

Small business owners remain optimistic, but they are also becoming more demanding of their financial institutions. Findings from a ProSight survey of 600 small business owners, presented during a recent Banking Outlook webinar, show that 72% expect their financial situation to improve over the next six months, even as rising expenses put more pressure on margins.  The survey identified three priorities […]

Deposit Growth Has Become a Precision Game

Deposit growth remains possible, but the opportunity is increasingly concentrated among a relatively small set of households, wealth tiers, and markets.  ProSight’s latest deposit data establishes the challenge. Consumer deposits were up 1.4% year-to-date through May 15, with large and direct banks driving much of the gain. Small-business deposits rose 1.8%. Even so, competition remains intense: Consumer deposits tracked by ProSight had grown 1.8% since rates began declining, compared with […]

Why Executive Privacy Belongs in Bank Security Strategy

Banks spend heavily to protect networks, branches, offices, and customer data. Yet information about an executive’s private life can create another route toward the institution—one that may begin with a cell phone number, home address, family connection, or daily routine.  In a recent ProSight webinar on connecting data security and physical security, Kelsi Strutton of Ironwall and workplace security consultant Felix Nater described […]

AI Data Center Risks and Opportunities for Lenders

Artificial intelligence is transforming industries across the economy, but behind every AI application sits a growing physical infrastructure requirement: data centers. As organizations race to deploy AI-powered tools and services, demand for computing power, storage capacity, and networking infrastructure is accelerating at an unprecedented pace.  For lenders, this rapid expansion potentially presents significant opportunities as […]

Community Banks Gain Model Risk Flexibility

Community and regional banks may have more flexibility under the federal banking agencies’ revised model risk management guidance, but institutions under $30 billion in assets should not assume model risk has disappeared from the regulatory radar.  That was a central message from Kevin Oden, founder and managing partner of Kevin D. Oden & Associates, during a recent ProSight Financial Association webinar examining the implications […]

From Monitoring to Advising: Audit’s Changing Role in Banking

As internal audit functions adapt to AI, real-time risk monitoring, and increasingly complex regulatory demands, their role is expanding well beyond traditional controls testing. In this Q&A with ProSight Financial Association, Eleanny Wernecke, a Partner in Oliver Wyman’s Risk & Finance Advisory practice, discusses how audit is becoming a more dynamic, technology-enabled, and strategically engaged function. She shares her perspective on the evolving relationship among audit, risk, […]

Primer: A Look at Credit Risk Insurance

Credit insurance protects lenders and businesses against losses from borrower or customer nonpayment. In this Q&A, Kevin Humphrey, managing director, trade credit & political risk, at Brown & Brown, explains how the product works in practice and where it fits within modern bank lending. He discusses why adoption differs between the U.S. and Europe, and how credit analysis done by insurers can complement the work of banks. The conversation also explores […]

Small Business Banking in 2026: Growth Pressures, Digital Demands, and a Fight for Trust

Small businesses are a cornerstone of the U.S. economy. In 2026, they are operating in a more complex and competitive financial environment. Rising costs, evolving digital expectations, and heightened competition among financial providers are reshaping how these firms choose and retain their banking partners.  In a recent ProSight Banking Outlook presentation, Mark Riddle and Jason Mencias, both directors in research intelligence at ProSight, shared findings from a survey of […]

Beyond the Incentive: Finding the Hidden Value Across Generations

Recent ProSight research and analysis indicates that there is an inherent drag on average account balances opened as part of a cash-incentive campaign. Organically opened accounts sit at a national average of over $5,000, while cash-incentivized accounts drop to just over $2,100. However, looking at the generational splits in the data below reveals a hidden […]

The AI Payoff Starts With Workflow Redesign

Banks looking for value from AI may need to start with the work itself: how it moves, where it slows down, and where human judgment still matters most.  In a recent episode of the ProSight Banking Strategies podcast, Lindsay Soergel, founder and principal of Apple PIE Consulting, says financial institutions miss the larger opportunity when they […]

Why Inflation Needs More Than One Lens

The latest inflation debate is not just about whether prices are rising too quickly. It is also about whether the standard measures are giving policymakers, banks, and households the clearest possible picture of what is actually happening.  The June 10 Consumer Price Index reading showed annual inflation reaching 4.2%, a three-year high, with energy prices contributing […]

The Compliance Paradox Facing Banks in 2026

For compliance teams, 2026 may look like a relief story from a distance. Federal priorities appear clearer, and some institutions see room to streamline. But in a new episode of the ProSight Banking Strategies podcast, ProSight’s Amy Repp and Chris Boersma explain why the day-to-day compliance picture is getting more complicated. Boersma, product manager of compliance at ProSight, calls […]

How SR 26-2 Changes the Model Risk Playbook

Revised interagency guidance gives large banks more room to tailor model risk management programs to their own size, complexity, and risk profile. That flexibility also places more weight on the institution’s ability to explain and defend its choices.  During a recent ProSight Model Validation Consortium webinar, model risk expert Kevin Oden said the new SR 26-2 framework preserves the […]

A Layered Defense Against AI-Driven Fraud

AI has made fraud faster, more polished, and easier to scale. It is also giving banks and credit unions new ways to detect altered documents, stop spoofed calls, monitor transactions, and prioritize suspicious activity.  In a reported feature for the June 2026 ProSight Executive Report, Jason Bartolacci, director of the ProSight Fraud Alert Network, examines both sides of that […]

Micro-Business Customers Offer Big Potential 

These days, with so many people engaging in entrepreneurial side hustles, singling out micro-business operators who require flexible banking is a promising opportunity for financial institutions. Think additional revenue and cross-promotional opportunities, to start. But the fact that these customers might be camouflaged in retail accounts presents a challenge.  As the digital economy beckons more workers who want to be their own boss, some people are willing to forgo—or add to—traditional corporate careers to answer the entrepreneurial call, according to data from Citizens Bank and other research.   Fledgling business operators come to banks as new accounts […]

Model Guidance: More Flexibility, Not Less Responsibility 

Large banks have more flexibility in how they structure and operate model risk management programs under newly revised interagency guidance, but that flexibility should not be mistaken for lower regulatory expectations, according to model risk expert Kevin Oden.  Speaking during a recent ProSight Model Validation Consortium webinar on the revised guidance for banking organizations with more than $30 billion in assets, Oden said the new SR 26-2 framework preserves the […]

Why AI Agents Need Job Descriptions

As banks experiment with agentic AI, one of the most useful governance tools may look surprisingly old-fashioned: the job description.  That is the practical message Lindsay Soergel brings to the human-plus-AI conversation in a recent episode of the ProSight Banking Strategies podcast. Soergel, founder and principal of Apple PIE Consulting, argues that banks should stop thinking […]

Inflation Readings: Are There Other Informative Cuts of the Data?

The June 10 Consumer Price Index (CPI) reading showed annual inflation reaching a 4.2% annual rate, a three-year high, with a rise in energy prices contributing to the surge. Stripping out volatile food and energy prices, CPI accelerated to a 2.9% annual pace. With prices of food and fuel driving higher upticks recently, the conversation around alternative ways to report inflation has re-emerged. In this discussion, ProSight speaks with Gene Ludwig—former […]

Effective Validation of Existing Real Estate Appraisals

Lenders who expand their use of validated appraisal reports can gain a competitive advantage in real estate lending, improve operational efficiency, reduce turn times, lower costs to borrowers, and maintain regulatory compliance.   There are four “Cs” to keep in mind as you enhance your valuation-related risk management practices:  Comply with Regulatory Expectations  Some lenders use validations on a limited basis, or not at all, because they are […]

Gen X May Be the Most Undervalued Banking Opportunity Right Now

Gen X does not get much attention in financial services strategy conversations. In a recent ProSight Banking Strategies Podcast discussion, Lee Wetherington, senior director of corporate strategy at Jack Henry, and Marcell King, president and COO at Nuuvia, make the case that this may be a mistake. Gen X, they argue, may be one of the most […]

Why Physical Security Now Starts With Digital Exposure

Last November, Felix P. Nater, a workplace security consultant and president of Nater Associates Ltd., told ProSight that companies can no longer treat digital threats and physical threats as separate problems. Protecting executives, employees, and worksites now requires a more integrated approach—one that accounts for how easily online exposure can turn into real-world risk.  That message feels […]

Fraud Has Become an Identity Problem

Fraud in consumer lending is getting harder to think about the old way. The challenge is no longer just spotting a suspicious transaction. Increasingly, banks have to ask a more basic question first: is the customer really who they appear to be?  Cristian deRitis of Moody’s Analytics and Subbu Narayanaswamy of Wells Fargo point to a practical consequence: banks […]

The Hidden Costs of a ‘Successful’ Workout

A full payoff on a troubled loan can feel like a clear win. Principal is back, accrued interest and fees are recovered, and in some cases the bank even books incremental income when the difference between legal balance and book balance reverses. But industry veteran Jason Alpert argues that banks should be more careful about how they define success […]

Consumer Credit Risk Is Hiding at the Margins

Consumer credit can still look stable at the top line even as stress builds in places that matter most to banks. Speaking to ProSight recently, Cristian deRitis of Moody’s Analytics and Subbu Narayanaswamy of Wells Fargo pointed to a more useful way for banks to think about the environment: the real risk is building unevenly, among specific borrowers and specific […]

How ‘Failure Analysis’ Can Help in Banking

The new season of the ProSight Banking Strategies Podcast opens with a big idea: banks should study failure more systematically and with more structure, using it to improve decision-making before the next problem arrives. In the first episode, Donald Sheets makes the case for bringing “failure analysis” into banking as a practical discipline, not just a postmortem […]

Bank Flexibility Is Rising. So Is the Need for Discipline

Bank regulation in the United States is not simply getting lighter. It is getting narrower. In Douglas Elliott’s view, that shift is giving banks more room to exercise judgment—but also putting more weight on how well they use it.  Elliott, a partner at Oliver Wyman, describes a regulatory environment that is moving away from prescriptive, […]

The Hidden Cost of Successful Workouts

As a workout banker, few moments felt better than issuing a payoff letter, especially when it meant a 100% repayment of principal and accrued interest and fees. Short of returning a restructured relationship to the line of business, knowing that a troubled loan would be fully resolved, assuming the payoff actually closed, felt like a clear win after months or years of managing risk. That sense […]

Gen Z Is Redefining What Loyalty Looks Like

Banks and credit unions have always had to adjust to new customer expectations. What makes Gen Z different, according to Carrie Stapp, is not just age. It is the mix of digital habits, economic uncertainty, and AI-enabled behavior reshaping how younger consumers look for financial help, decide what to trust, and judge whether a financial […]

Consumer Protection Is Shifting to the States

Federal pullbacks in consumer protection oversight have not produced the simpler compliance environment some might have expected. In the view of BCG Senior Advisor Brian Hughes, they have prompted something harder to manage: a more fragmented system in which states are building their own consumer protection machinery, expanding their legal authority, and showing a growing willingness to act […]

A More Focused Regulatory Era Brings Greater Freedom, Greater Risk

Bank regulation in the United States has entered a new phase marked less by deregulation than by a decisive narrowing of priorities. In a wide‑ranging discussion with ProSight Financial Association on the current regulatory landscape, Oliver Wyman partner Doug Elliott described a shift away from prescriptive, checklist‑driven oversight toward a framework that emphasizes core financial risks, supervisory judgment, and economic growth. The result […]

How AI Is Transforming Self-Service Banking: Today, Tomorrow, And Beyond

Artificial intelligence (AI) has moved beyond buzzwords—it is a foundational technology shaping the future of banking. Financial services is leading the way in AI adoption, bridging the gap between human intelligence and machine learning to deliver better customer experience, drive growth, and enhance operational efficiency. Data suggest that nearly all North American banks already use […]

The High-Value, High-Margin Opportunities Inside the Building

Customers have moved more of their everyday banking needs online and to self-service channels. Branches, meanwhile, are evolving into specialized hubs for high-value products, problem-solving, and community connection. Financial institutions are hoping that by reframing the role of the branch, they can capture more of the high-margin business that high-touch customer interactions can yield. Within […]