I Celebrating the Future OF BANKING BY DAVID BECKER, CHAIRMAN AND CEO, FIRST INTERNET BANK, FISHERS In the late 1990s, the internet was rapidly commercializing and becoming a fixture in households. As a fintech entrepreneur, I saw an excellent opportunity. I launched First Internet Bank in 1999 to address the needs of forward-thinking consumers who were beginning to demand greater access and convenience from financial services. After 25+ years of growing and learning, I am proud of the role that First Internet Bank played in transforming the banking industry by staying true to our entrepreneurial roots and avidly accepting change. As we look ahead, I am confident that artificial intelligence will be the next transformative force in banking. The McKinsey Global Institute estimates that AI’s impact could add $200-$340 billion annually in value to the banking industry,¹ primarily from increased productivity. This enormous growth would dwarf the internet’s transformative impact on our industry. However, the adoption of AI in banking has been slow. Of the 338 U.S. banks traded on the major U.S. exchanges, only about 8% had begun leveraging AI technologies through the third quarter of 2023.² As the leader of a community-sized bank, I appreciate the challenges: the need for high-quality organized data, regulatory considerations, employee training and risk and security concerns. Not since the internet took off in the late 1990s have I been this excited by the power of technology to reshape our daily lives, including the way we bank. I hope all institutions are at least considering first steps to take advantage of increased efficiencies, while prioritizing customer security and confidence through the adoption of AI. (If you attended Mega 2024 and heard the same content I did, you are well on your way!) Streamlining Data Security Wars are being waged against banks by bad actors in the form of cybersecurity attacks, identity theft and other fraud. Employees need to sleep and take vacations – but AI is always on. Through automation and machine learning, AI can analyze large amounts of information and identify potential threats more effectively, narrowing the scope of alerts that require manual intervention. Even better, AI’s continuous learning will adapt to changes in the environment. That will better enable us to keep up with – and stay ahead of – potential fraudulent activities. Improving Customer Service Consumers want fast, personalized service delivered on their schedule. With AI-powered chatbots and virtual assistants, we can provide 24/7 support, answering queries and assisting with basic transactions. As a bank that has always sought to reach our customers wherever and whenever they want to do their banking, this flexibility is a game changer. By automating simple requests, chatbots will improve response times, help deliver personalized content and enhance their experience. Supercharging the Value of Data AI’s ability to unlock data’s hidden potential is critical. For years, bankers have spent hours poring over endless spreadsheets to make informed decisions. Soon, AI tools will help crunch those numbers in seconds, allowing bankers to leverage data more efficiently. Take loan underwriting, where AI can ingest a financial statement and calculate ratios needed for credit analysis in moments. Layer atop that AI’s ability to incorporate predictive analytics utilizing historical data to assess potential borrower risks, and you have a fast, compelling start to a credit memo. OPERATIONS & TECHNOLOGY 46 HOOSIERBANKER
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