As artificial intelligence and other technologies evolve, banks need to adopt new technology in a responsible way that protects customers, and they need someone to lead that process, American Bankers Association Chair Cathy Owen said today during a discussion with Federal Reserve Vice Chair for Supervision Michelle Bowman.
Owen and Bowman discussed AI, technology and the bank regulatory outlook during a fireside chat at the University of Mississippi Banking and Finance Symposium. Owen said banks have and will continue to embrace new technologies, but they must do so in a way that ensures accountability and consumer protection
“It is very important to educate yourself, or make sure there’s someone who’s taking that role as a leader and learning about it to make the right decisions within your institution,” Owen told the bankers in the audience.
As AI fuels new cyber threats, Bowman said the Fed will continue to do “around-the-clock” cyber examinations and IT examinations of the financial institutions it supervises. She also said the Fed is engaging with other government agencies and bankers in a series of roundtables to develop ways to better tackle fraud.
“It is a very important priority for the Federal Reserve and for the government to ensure that we are focusing on these issues,” she said. “Every time I meet with bankers, it’s one of the top three issues they cite.”
