ChatGPT Enters Banking Space

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Banking News

Regional Bank Failures May Cause M&As

The recent string of regional bank failures could lead to an uptick in mergers and acquisitions as consolidation becomes an option for struggling lenders to strengthen their positions in a tough market, according to experts. However, consolidation may not be the best option for every struggling regional bank, and it remains to be seen if regulators will change their stance on bank M&A as they have previously expressed concerns about approving mergers that hurt competition or present systemic risks.

BCG’s North America lead on financial institutions practice, Ingmar Brömstrup, said:

FirstRepublic Bankers Migrate to BankUnited

BankUnited has hired three bankers from First Republic to expand its corporate-banking business in New York. Executive Vice President Matthew Gallo, Senior Vice President Daniel Mills, and Vice President Laura Ackerman will help the Miami Lakes-based lender grow its corporate-banking presence. Meanwhile, BankUnited was one of the losing bidders in the Federal Deposit Insurance Corp.'s auction for the assets of Silicon Valley Bank.

Credit Union News

‘Costovation’ Combines Savings & Innovation

Steve Wunker, Managing Director for New Markets Advisors, suggests that cost savings and innovation are not mutually exclusive, and companies can use “costovation” to build leaner and lower-cost businesses that consumers love. This approach focuses on meeting or exceeding customer expectations with less, not just straightforward cost-cutting. Costovation requires a fresh perspective on the market, a relentless focus, and a willingness to blur innovation boundaries.

Planet Fitness is an example of costovation, which is profitable despite charging members just $10 per month, by catering to casual and first-time exercisers.

CUs Support the American Dream

Chih Wei Chen, assistant vice president and branch manager at Tinker Federal Credit Union, attributes his work ethic to the lessons he learned while helping out in his family’s Chinese restaurants after they emigrated to the US from Taiwan. Tinker Federal's culture appealed to Chen when he joined in 2009, thanks to the credit union’s commitment to its employees. He cites the Leadership, Education, Achievement, and Development (LEAD) program as helping him move up the ladder. Chen recently became assistant vice president and urges newcomers to the US to work hard and embrace challenges.

Chih Wei Chen said:

Financial Services & Blockchain

ChatGPT Enters Banking Space

MoneyLion, a neobank, plans to introduce a search feature powered by ChatGPT, according to CEO Dee Choubey. The feature will allow customers to search for transactions, offers and products on the platform’s finance marketplace, Engine by MoneyLion.

The neobank's access to a rich data set of consumer information is key to offering personalized products and will help drive its growth as a "part neobank, part data company.” MoneyLion recently acquired Malka Media to take its marketing operations in-house, helping it reduce advertising expenses.

Binance Unhappy with American Crypto Regulations

Binance's Chief Strategy Officer, Patrick Hillmann, has criticized US regulators for making it difficult for the company to operate in the country. Speaking at the Financial Times' crypto and digital assets summit, Hillmann expressed a desire for the company to be regulated in the UK instead. Binance has faced legal action from US regulators, including a lawsuit from the Commodity Futures Trading Commission, and regulatory issues in the UK, where it was ordered to cease regulated activities in 2021.

A spokesperson from Binance said that the:

Market Movements (5.7-5.12)