Banking for the Future
As technology continues to evolve and become further ingrained in every aspect of daily life, the banking and finance industries are fighting to keep up with customer expectations and the prevalence of artificial intelligence.
Banking and finance are two deeply related industries with intertwined futures. While both industries have existed in the nation for over two centuries, they are seeing rapid changes due to a number of factors.
From quickly advancing and emerging technologies to an unstable economic landscape and customers developing new desires and expectations as far as what they look for in the financial institutions they utilize on a daily basis, these changes mean credit unions and banks of all sizes have to adapt their systems and services in order to keep up.
The need is particularly felt by smaller institutions, who often need to make major changes to their structure in order to remain competitive in the current economic environment.
Stan Molotsky is currently the president and CEO of SHM Financial Group. Previously, he was one of the originators and founders of First Colonial Bank in Collingswood, which was recently acquired by Mid Penn Bank.
“Smaller banks found it more and more difficult to compete with the larger banks. So in order to compete, the smaller banks have to become bigger banks or parts of it. Long story short, that’s the reason that all happened, but as it happens, the evolution in banking is so much different,” Molotsky says.
Expectations around what technology should be available to customers for convenient and on-the-go banking options also heavily influences how smaller banks are able to continue operating in the modern world of banking.
“Customer needs keep changing, and different customers need different things. … It’s not like it was in the past. You have all the online banking and all the different things that you can do that you couldn’t do before, and if the banks aren’t geared up to do all that, you’re going to move on, so it makes it much more difficult in the banking community,” Molotsky says.
As clients want more customization and personalization in their banking experience while the technology behind artificial intelligence continues to develop, banks are using AI to meet customer demands. Working AI tools into existing systems for 24/7 customer support and helplines, fraud prevention and protection, and personalization is one way many banks and credit unions have worked to keep up with the needs of their clientele.
“While branches still play a critical role in deposit growth, transactions and key consultative activities, self-serve apps and artificial intelligence are catering to a population who prefers to handle transactions and other banking activities on their own. … If traditional credit unions or community banks wish to remain competitive with fintechs and maintain market share, they will need to explore embedded finance and digital-first channels to do so, necessitating greater third party and technology risk management discipline,” says Mike Dinneen, First Harvest Credit Union’s president and CEO.
Though many services are being offered, if not entirely moved over to a digital form via web or app, interpersonal connections and maintaining personal relationships between banks and their clients remain a vital element of success.
“It's more important than ever,” says Beatrice Romao, TD Bank retail market president, Mid Atlantic North. “While digital adoption and technology advancements certainly enhance the experience, relationships are built on trust. Digital channels provide speed and convenience but our customers still value trusted advice during important moments across their journey. Our focus is on combining strong human connection with digital insight, so every interaction—whether in-store or online—feels personalized, consistent and meaningful.”
Despite the fast-moving and ever-changing worlds of finance and banking, which raise questions and challenges for those working in the industries, the short- and long-term outlooks on banking are positive.
“The banking industry in New Jersey remains strong and of critical importance to our state’s economy, assisting individuals in their dreams of owning homes and businesses, supporting nonprofit organizations through donations and volunteerism, employing over 60,000 individuals in our state, and more. I do not see that changing in the short or long term,” says Michael Affuso, president and CEO of the New Jersey Bankers Association.
Regulation, particularly of the newer forms of technology that is being used for customer support and fraud protection, is another element of the near future for the banking industry.
Over the last year the tech surrounding the industry has already seen new regulation, bringing the industry up to date with the changing landscape.
“While there has been regulatory landscape changes over the last year, the modernization of our regulatory agencies has created a more efficient and more transparent relationship between institutions and regulators, which should only improve the banking system,” Dinneen says.
Though there’s an overall positive outlook on the future of the industry from those within it, Dinneen also acknowledges that inflation, the rate environment that favors savers over borrowers, and housing shortages make for a difficult economic climate for many individuals to get by in, especially younger adults just getting out of college and beginning their adult lives and careers.
As artificial intelligence opens new doors for ways banks can serve their clientele and regulators work to keep up as things advance, the banking industry has to change rapidly while still maintaining the interpersonal relationships and effective safety and security procedures their existing customer base knows and expects.
“It's exciting to see how AI data-driven insights and digital innovation are reshaping how banks engage with their clients. The opportunity is tremendous—but the bar has never been higher. The challenge for banks is to move with speed and discipline, maintain strong governance and risk controls, and compete with fintechs and non-bank players who move with tremendous speed. For TD, success comes down to staying disciplined, continuing to invest in innovation and keeping the customer at the center of every decision,” Romao says.
The shifting relationship that banking and finance now have with technology, relying on it for services more than ever in previous eras, can be very daunting as both industries learn to balance the responsible use of the tech with the new-found risks that come along with any newer form of automation.
These challenges mean that banks and those working in the industry need to stay ahead of the curve in terms of tech advancements. This can present challenges for bank employees and management not knowing where to start in terms of learning about new forms of automation and how to use them, as well as lawmakers and regulators being behind on what would be most beneficial for both the industry and the people it serves.
The New Jersey Banks Association provides assistance in these areas, educating its member banks and advocating for their interests at both the state and federal levels to ensure their success.
“Our association advocates for our state’s banks in Washington and Trenton to ensure that policies surrounding technology are responsible to all parties, preserving financial stability and protecting consumers,” Affuso says. “In education, we host a number of conferences throughout the year to help bankers stay ahead of the curve, with many featuring a technology component. Some of our offerings include the Banking on the Future Conference, AI in Banking Conference, Digital Assets Conference, Mid-Career Conference and Economic Leadership Forum.”
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Published (and copyrighted) in South Jersey Biz, Volume 16, Issue 6 (June 2026).
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