January 2025

January 2025

Bank Automation News invites you to check out these top stories from the past month:

RTP payment volume up 94% in 2024

(Courtesy/Canva)

The Clearing House’ Real Time Payments network grew 94% year over year on a dollar basis in 2024 as it continued to benefit from the Federal Reserve’s marketing of FedNow.

TCH moved $246 billion on its network in 2024 and increased transaction volume by 38% YoY to 343 million transactions, according to a Jan. 8 release.?

FedNow’s 2023 entry into the market increased the visibility of instant payment capabilities, making banks rethink their instant payment service strategies, Jim Colassano, senior vice president of product development and strategy at TCH, told Bank Automation News.?

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Finastra names Chris Walters CEO

Outgoing Finastra CEO Simon Paris (left) with new CEO Chris Walters (Courtesy/Finastra)

London-based financial services provider Finastra named Chris Walters as chief executive Jan. 6, effective immediately.

Finastra provides bank technology to many of the world’s largest banks, including Lloyds Bank, First Citizens Bank and Vystar Credit Union.

Walters, who succeeds Simon Paris, will work with Paris over the “next few weeks” to transition into the leadership role, a Finastra spokesperson told BAN.

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ROI of AI: Is the juice worth the squeeze?

Ninety-eight percent of industry leaders say integrating AI into their strategies will drive a 52% increase in revenue during the next five years. (Courtesy/Canva)

C-suite executives at financial institutions are implementing AI and generative AI throughout their organizations, but as experimentation turns into application, here’s the question: Is the juice worth the squeeze?

Ninety-eight percent of industry leaders say integrating AI into their strategies will drive a 52% increase in revenue during the next five years.

This is one finding of a recent survey of 101 full-time financial services industry executives at the manager level or higher. The “Revenue Enablement in Financial Services: 2024 Global Findings & Insights” survey, conducted between July 23 and Aug. 9 by tech provider Seismic, also found:

  • 62% of financial service companies are already using AI-powered tools in their enablement processes;
  • 98% of those surveyed say their firms are increasing investment in enablement technology going into 2025; and
  • 93% of those surveyed say their companies are upping investment after seeing returns on investment.

Are the potential gains worth the investment in AI integration?

WEIGH IN HERE

Lloyds doubles down on AI initiatives in 2025

Lloyds Bank is using AI to streamline various aspects of its business. (Courtesy/Alamy)

British retail bank Lloyds Bank’s strategy involves revving up its AI initiatives in 2025.

The $1.1 trillion bank revealed to BAN that its AI ambitions include:

  • Providing code translation between software engineers to categorize company documents;
  • Collaborating with educational institutions and regulators to develop AI applications; and
  • Developing customer-facing AI initiatives and processes it plans to launch in 2025.

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5 questions with … TD Bank Chief Analytics and AI Officer Luke Gee

TD Bank is deploying AI initially for software development and customer assistance with plans to use AI to streamline operations. (Bank Automation News)

As chief of AI and analytics at TD Bank, Luke Gee is working to identify processes that can be streamlined through AI.

The $1.9 billion bank is deploying AI initially for software development and customer assistance and plans to expand AI use to further improve operations, Gee told BAN.

Toronto-based TD has also urged employees to pitch ideas on ways AI can be used to make their jobs more efficient, Gee said, adding that the bank has implemented 10,000 of those ideas out of 100,000 submissions in the past five years.

In an interview with BAN, Gee shared his plans on how AI can be developed and used within the bank to create value.

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Bank Automation News hosts webinar on best practices for cloud migration

More financial institutions are moving operations to the cloud. (Courtesy/Canva)

Bank Automation News will present the webinar “The best practices in cloud migration for financial services” on Tuesday, Jan. 28, at 11 a.m. EST.

In this free, 45-minute discussion moderated by BAN Associate Editor Vaidik Trivedi, industry leaders will discuss:

  • What FIs are seeking from cloud providers;
  • Why FIs opt for a multicloud strategy; and
  • How to determine what applications to migrate to the cloud.

Join the webinar to hear from the following cloud experts:

  • Zac Maufe, managing director of global regulated industries at Google Cloud; and
  • Spencer Kimball, chief executive officer at fintech Cockroach Labs.

REGISTER HERE FOR THE JAN. 28 WEBINAR

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