“Agentic AI Could Trigger a Deposit Exodus. What Banks Can Do About It”
AI tools that help consumers find better deposit rates and move their money could put pressure on banks’ low-cost deposits. With an estimated $570 billion in bank CDs paying 3.25% or less, this article outlines ways banks can rethink deposit pricing and customer-retention strategies.
“Midterm Results May Curb Bank-Friendly Legislation, Analysts Say”
Democrats’ sweeping midterm victories are likely to slow bank-friendly legislation and lead to more oversight of the financial services industry, analysts say. While major near-term changes to supervision are unlikely as current regulators are expected to remain in place, Democratic control of the Senate could complicate confirmations of future nominees for financial regulatory positions. Meanwhile, greater Democratic influence at the state level could lead to more efforts to regulate interchange fees and AI.
For a deeper dive into what the midterm results mean for banks, including the prospect of Sen. Elizabeth Warren, D-MA, leading the Senate Banking Committee, check out our latest episode of Banking with Interest with Politico’s Victoria Guida and Punchbowl News’ Brendan Pedersen.
“Winning Deposit Growth in Today’s Digital Marketplaces”
Consumers are increasingly using online marketplaces to compare deposit rates, giving community banks opportunities to attract new customers. Review these tips on competing for deposits in a digital marketplace.
“FDIC Proposes a Fix for a State Charter Parity Gap”
The FDIC has proposed a rule that would give state-chartered banks the same protections as national banks from certain state laws when providing services across state lines, even without a physical branch. If finalized, the rule could save state banks an estimated $308 million in one-time compliance costs related to Illinois’ new interchange fee law.
Separately, community banks operating across state lines must navigate various data privacy, breach reporting, and AI regulations. Review these tips for managing compliance requirements across jurisdictions.
“SEO vs. AEO vs. GEO: Why All Three Matter in Community Bank Marketing”
As more consumers use AI for information about financial products and services, community banks may need to rethink their websites to remain visible in search results. This article offers tips for improving visibility in traditional and AI-powered searches, including keeping information current and authoritative and organizing webpages so search engines can easily find it.
“Where Banking as a Service Is Heading, and How Your Bank May Fit Its Future”
BaaS is evolving as more fintech companies seek their own bank charters, tech providers change their business models, and stablecoins create new opportunities. Banks considering fintech partnerships must weigh potential revenue against the costs and risks of those relationships, including the possibility that partners may eventually operate independently, this article says.
In Other News
Voters across the country backed restrictions on new AI data centers, British adventurer Karl Bushby returned home after a 28-year stroll around the world (he had to do some swimming, too), and Senate Banking Committee ranking member Elizabeth Warren, D-MA, raised questions about the “existential risks to humanity” posed by AI ahead of Anthropic’s planned IPO.