ABA Banking Journal
No Result
View All Result
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive
SUBSCRIBE
ABA Banking Journal
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive
No Result
View All Result
No Result
View All Result
Home Compliance and Risk

How to harness the coming leaps in bank innovation

March 11, 2024
Reading Time: 3 mins read
Leveraged Lending Is Rising, But Bank Exposure Is Limited

AI or not, “data readiness” is the first step to putting bank data to work.

By Ryan Jackson

Every journey begins with a single step, and for bankers whose 2024 goals include exploring the transformative power of artificial intelligence, that first step is developing a data strategy.

Goldman Sachs Research estimated generative AI usage could drive a 7 percent increase in global GDP over a 10-year period, McKinsey estimates that generative AI has the potential to create $200-$340 billion in total value and an Accenture “analysis of operational efficiency indicates a potential to boost productivity by 22-30 percent” in banking due to generative AI.

These figures are staggering, and the value to banks and their customers is becoming clearer with every iteration and application, but AI is only as useful as the data that fuels it—the data that your bank safeguards on behalf of your customers.

At a recent event, Evident AI Symposium, David Rice, the global COO of commercial banking at HSBC, encapsulated the importance of data for banks: “Because of the open-source origin of many AI technologies, there is little competitive advantage in the underlying tech—the competitive advantage resides in your proprietary data. Data is such a valuable asset, it should be on your balance sheet.” (emphasis added).

To ensure your bank is “data-ready” to harness the efficiencies of these leaps in computing power, ask and answer these three questions:

1. Does my bank have a strong, transparent data governance policy? In this case, data governance refers to the overall management of data within your bank. Having a data governance policy ensures that the data is accurate, consistent and accessible to employees at the time it is necessary. One of the initial steps a bank can take to answer this question is to create an inventory of data assets, identifying what data is available, what system it lives on, how it can be accessed and by whom.

2. Does my bank have a strong, scalable data security and compliance policy? Ensuring robust access controls, compliance with data privacy regulations, and data protection (for example, data backup and resilience, disaster recovery and breach response protocols) are just a few of the initial items that should be determined.

3. What is my bank’s data quality process? Having accurate, consistent and reliable data is necessary before any use of the data can be undertaken. This process should apply to both internally generated and externally sourced data to validate and cleanse the data as necessary.

The answers to these three questions are foundational, but each policy should continuously be assessed, enhanced and built upon. Many banks use a mix of internal and external resources (and, yes, this includes some artificial intelligence products) to develop these data strategy elements. For example, as part of a broader digital transformation, Arvest Bank leveraged external consultants who worked with in-house technologists to build out new capabilities. Other banks find it more difficult to commit to a more aggressive data strategy. In a recent Wavestone 2024 Data and AI Leadership Executive Survey, nearly 78 percent of respondents listed “Culture/People/Process/Organization” as the principal challenge to becoming data-driven.

You might think that “my bank won’t be using artificial intelligence,” so you won’t need to create a data strategy. However, the benefits of a data strategy are much broader than the ability to leverage artificial intelligence solutions. Examples include generating insights about current customers, new product development, better board reporting, simpler data access for regulatory exams, more timely financial management and the ability to respond to new regulatory requirements.

Just about every single function within a bank can benefit from a robust data strategy, and that journey begins with clear answers to these three basic questions. With each element in place, banks can explore opportunities to leverage data to drive meaningful business outcomes, including through innovations available through the incredible power of artificial intelligence.

Did you find this article helpful or thought provoking? Would you be interested in joining ABA’s Enterprise Privacy and Data Governance Working Group, which can be a resource for ABA members in building their data strategy? Please reach out to [email protected] with any questions or to continue the discussion.

Tags: Artificial intelligenceBig dataDataInnovation
ShareTweetPin

Author

Ryan Jackson

Ryan Jackson

Ryan Jackson is VP for innovation strategy in ABA’s Office of Innovation.

Related Posts

Predicting what is ahead for banks

Compliance and Risk
January 21, 2026

Bankers face challenges and opportunities in multiple key areas.

ABA unveils key policy priorities for 2025

ABA releases top policy priorities for 2026

Community Banking
January 20, 2026

ABA released its 2026 Blueprint for Growth, outlining its top policy priorities for the year ahead. Developed by ABA’s Government Relations Council, the Blueprint will shape the association’s ongoing engagement with Congress and the administration on the most...

BIS: Stablecoins fail as ‘sound money’

ABA, associations seek extension of comment period for FDIC’s Genius Act implementation

Newsbytes
January 20, 2026

ABA joined four other associations to request that the FDIC push back the deadline for comment on its proposal to create a process through which banks can seek agency approval to issue stablecoins through a subsidiary.

State legislatures enter their busy season

State legislatures enter their busy season

Policy
January 20, 2026

Bank advocates expect 2026 to be a hectic year for state legislation, with possible bills on interchange fees, fraud, AI and more. 

OCC’s Gould: Bank regulation should not distract banks from business challenges

Gould suggests easing bank resolution planning requirements

Compliance and Risk
January 16, 2026

Comptroller of the Currency Jonathan Gould said he sees no benefit in the FDIC continuing to require filings from large banks that detail their suggested orderly resolution in case of a bank failure, known as CIDI plans. He...

Survey: Merchants expand payment options, express interest in crypto

Survey: Merchants expand payment options, express interest in crypto

Newsbytes
January 16, 2026

BNPL is now the fourth most accepted form of payment at small businesses, behind debit or credit cards, digital wallets, and cash. At the same time, merchants express growing interest in cryptocurrency.

NEWSBYTES

ABA urges FDIC to pause special assessment collection

January 21, 2026

Trump directs agencies to restrict housing ownership by large investment firms

January 21, 2026

ABA offers recommendations for implementation of new ag lender tax benefit

January 20, 2026

SPONSORED CONTENT

Seeing More Check Fraud and Scams? These Educational Online Toolkits Can Help

Seeing More Check Fraud and Scams? These Educational Online Toolkits Can Help

November 1, 2025
5 FedNow®  Service Developments You May Have Missed

5 FedNow® Service Developments You May Have Missed

October 31, 2025

Cash, Security, and Resilience in a Digital-First Economy

October 20, 2025
Rethinking Outsourcing: The Value of Tech-Enabled, Strategic Growth Partnerships

Rethinking Outsourcing: The Value of Tech-Enabled, Strategic Growth Partnerships

October 1, 2025

PODCASTS

Podcast: A Lone Star banking perspective

January 15, 2026

Podcast: The incredible shrinking penny (circulation)

January 8, 2026

Podcast: Cybersecurity in a mobile-first banking landscape

December 18, 2025

American Bankers Association
1333 New Hampshire Ave NW
Washington, DC 20036
1-800-BANKERS (800-226-5377)
www.aba.com
About ABA
Privacy Policy
Contact ABA

ABA Banking Journal
About ABA Banking Journal
Media Kit
Advertising
Subscribe

© 2026 American Bankers Association. All rights reserved.

No Result
View All Result
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive

© 2026 American Bankers Association. All rights reserved.