Community banks and credit unions struggle to compete with large national banks that benefit from scale and advanced AI-powered automation, which reduces incremental costs such as branch expansion. Macro-economic pressures including tighter margins and rising regulatory requirements force smaller institutions to do more with less. However, consumers show preference for regional banks if digital product offerings are comprehensive.
The proliferation of AI add-ons poses a dilemma for CIOs on fiscal planning, with a need for selective adoption focused on critical pain points like loan origination, customer service, and marketing automation. Avoiding indiscriminate vendor subscriptions is key to realizing measurable ROI within 12 to 24 months. Successful deployment requires more than technology—it demands a change in operating models.
Institutions must invest in workforce training to incorporate AI as augmentation rather than replacement, establish governance frameworks addressing bias, explainability and regulatory scrutiny, and foster a cultural shift to build trust. A disciplined business case aligned with strategic goals and macro conditions will help gain board support. With focused investments and operational readiness, community banks and credit unions can leverage AI to enhance competitiveness and sustain growth.
👉 Pročitaj original: CIO Magazine
