- StandardC
- Posts
- Capital One Fights Fraud with AI
Capital One Fights Fraud with AI
Capital One bank has implemented a more ‘democratic’ access paradigm to machine learning (ML) technology.
Anna Lad & Robert Baron
May 05, 2023
If you want to learn more about our team, visit us here. If not, enjoy our write-up; we look forward to providing you with industry news every Friday.
Banking News
$13.4B TD-First Horizon Merger Is No More
A $13.4B merger between First Horizon and TD Bank has been canceled due to slow-to-materialize regulatory approvals. First Horizon will receive $200M cash and $25M reimbursement.
While TD executives believe canceling the merger provides “shareholders with clarity,” First Horizon executives and analysts aren’t so sure. They think a lower-priced merger could have been possible. Bryan Jordan, CEO of First Horizon, considered the end of the merger to be:
unfortunate and unexpected…[First Horizon] will continue on its growth path operating from a position of strength and stability.
Layoffs Continue at Morgan Stanley
Morgan Stanley may cut up to 3,000 jobs by the end of June, almost twice the number of layoffs it made in December, with the investment banking and securities divisions expected to shoulder the majority, according to reports.
Profits from its merger advisory business in Q1 decreased 32% compared to Q1 2022. There was also a 22% decrease in profit for equity underwriting.
Credit Union News
Land of Lincoln FCU Expands its Reach
Nokomis Savings Bank will be bought by the Illinois-based Land of Lincoln Credit Union. The transaction’s terms have gone undisclosed, but it is clear that the acquisition will be complete by March 2024. Compared to 2022, fewer credit unions have purchased banks - LLCU’s purchase is the 2nd instance of a CU buying a bank in 2023, compared to 6 such purchases at this time last year.
Changing economic conditions are a likely cause of this shift. Robert Ares, CEO of Land of Lincoln CU, said
This acquisition is part of Land of Lincoln’s strategic growth plan, which includes adding branches and markets to better assist our members throughout Illinois.
Digital Tools Help CUs Grow
Spotlight on Dakotaland Federal Credit Union, a CU based in small-town South Dakota. The Huron-local institution is a prime example of how CUs can navigate complicated federal regulations while providing customers with great service. Analysts recommend CUs implement similar methods as Dakotaland – especially using SEC rules to increase efficiency, installing sophisticated CRM systems, and keeping a well-updated directory of their own policies and bylaws.
Financial Services & Blockchain
Woodforest Teams Up with SaaS Fintech Savana
Updating banking software is no small feat; overhauls take years and require intricate data management. Texas-based Woodforest National Bank is in the midst of a 3-year process of overhauling an outdated software core. By working with Pennsylvania-based fintech Savana, the bank has connected branches, offices, and the bank’s call center. It has simplified work for employees and made banking access easier for customers.
Digital channels director at Woodforest, Allison Carpentier, said
We have an opportunity here to replace [our old technology stack] with something that is significantly better, as opposed to just simply band-aiding it with some other layer of technology.
Capital One Fights Fraud with AI
Artificial Intelligence (AI) technology has advanced dramatically in the last year, with 4/5 banks using AI in some capacity. Capital One bank has implemented a more ‘democratic’ access paradigm to machine learning (ML) technology.
Rolling out the advancements has proven challenging due to a lack of AI understanding, privacy issues, and the diversity of platforms, but results of the teamwork have been positive so far. Project execution is more efficient and communication is better. Time will tell how the adoption progresses.
Market Movements (5.1 - 5.5)
