Finding the right balance between innovation and relationships in finance
Writer: Eleana Teran
March 2025 — As financial institutions accelerate their adoption of artificial intelligence, automation, and digital banking, they are also facing an evolving set of challenges — from cybersecurity threats to maintaining customer trust.
“People’s finances are extremely personal. The institutions that find the right balance between innovation and relationships will be the ones that succeed,” said Leigh Hayes, national tax partner at Forvis Mazars, during the Invest: Charlotte leadership summit, a regional conference held at the Blumenthal Performing Arts Center covering multi-sector investment and trends, on March 4.
Advancements in AI and automation continue to streamline operations, but experts emphasize that financial institutions must strike a balance between digital innovation and maintaining a personal connection with clients.
“Technology is a given, and we are in with both feet,” said Ted Wolfe, president of TowneBank, on the panel. “But we believe it is a tool to augment our service toward our members and clients, not a replacement for relationships.”
Financial institutions have dramatically increased their digital investments in recent years, with spending on digital transformation reaching $220,000 per $1 billion in assets in 2021. That figure nearly doubled to $425,000 in 2022 and surged to $780,000 in 2023, highlighting the growing dependence on technology-driven banking solutions, according to the Digital Banking Performance Metrics study.
As financial institutions increasingly integrate automation, the focus is shifting from traditional operational tasks to leveraging big data and predictive analytics to drive business strategy, according to Deloitte’s Crunch Time: Finance 2025 Revisited report.
Cybersecurity risks are also becoming more prominent as digital transformation accelerates. A recent PwC survey found that only 2% of companies have fully implemented cyber resilience strategies, despite rising concerns.
“Our chief technology officer always describes it as a rubber band,” said Wolfe. “On one end, we have innovation and access to information. On the other hand, we have security and regulatory risks. You need the right amount of tension, or it snaps.”
The adoption of GenAI is reshaping financial services by enhancing fraud detection and automating decision-making. However, it also presents challenges, with 39% of executives struggling to integrate it into existing systems and another 39% citing trust issues among stakeholders.
“Cyberattacks are not a matter of if but when,” said Hayes. “The way financial institutions respond and protect their clients is critical to maintaining trust.”
AI is revolutionizing financial services, from predictive analytics to enhancing customer interactions, but the human element remains crucial. Ron Everett, SVP of platform relationships and servicing process leader at Synchrony, noted that many consumers no longer visit physical bank branches, instead expecting seamless, tech-driven solutions. “Many people don’t step foot in a bank anymore,” he said. “They expect digital convenience, but we have to make sure we’re not leaving people behind in the process.”
For more information, visit:
https://www.synchrony.com/
https://www.townebank.com/
https://www.forvismazars.com/
