Here are some key points from the full article:
- The adoption and implementation of AI technology within the banking sector is rapidly increasing, with institutions such as Ally Bank delving into the realm of generative artificial intelligence.
- JPMorgan Chase experienced significant fallout from their affiliation with a college financial-planning website, where allegations of fraud resulted in a multi-million dollar lawsuit.
- Banks across the United States are becoming targets for cyberattacks, with an increasing number succumbing to these attacks over the past year.
- The Cross River Bank has received a warning from the FDIC regarding unsafe banking practices and their fintech partnerships.
- An outage at JPMorgan Chase disrupted Zelle transactions, bringing the robustness of banks’ digital payment systems into question.
- USAA is maintaining its decade-long patent war on the financial industry, with Discover Financial Services agreeing to a licensing agreement regarding mobile deposit capture technology.
In conclusion, 2023 presented a bag of mixed fortunes in the tech space within the banking industry with substantial developments in AI adoption contrasted with cyber security challenges, lawsuit debacles and technical glitches in digital transaction systems. One of the dramatic episodes occurred when JPMorgan Chase suffered considerable consequences from its deal with a college financial-planning website leading to allegations of fraud. Further on digital platforms, an outage that disrupted Zelle transactions in JPMorgan Chase signaled potential vulnerabilities in the robustness of banks’ digital payment systems.
On a positive note, AI gained grounds with Ally bank taking bold steps into generative artificial intelligence, a move which underscores the industry’s growing reliance on advanced technology to enhance services. However, alongside these advancements, the risk of cyberattacks on banks has been on the rise. As evident from incidents such as the one in which at least 10 US banks and credit unions fell victim to a ransomware attack, banks need to bolster their cyber security measures. The year also saw regulatory actions with the FDIC warning Cross River Bank over unsafe banking practices associated with their fintech alliances.
A noteworthy thread throughout the year was the continuation of USAA’s patent war on the financial industry, which resulted in Discover Financial Services acceding to a licensing agreement to use mobile deposit capture technology. This marks an essential turning point in the ongoing friction around patent rights in the banking tech sector.
